Robert W. Baird Increases Price Target for RH (NYSE:RH) to $400.00

Analysts at Robert W. Baird have raised their price target for RH (NYSE:RH) from $300.00 to $400.00 in a research note released to investors on Friday. This update reflects a cautious but optimistic outlook, as the brokerage now maintains a "neutral" rating on the stock. The new price target suggests a potential upside of about 4.85% from the stock's closing price prior to this announcement.

Recent Analyst Ratings for RH

In addition to Robert W. Baird's update, several other research firms have recently published their assessments of RH. For instance, Morgan Stanley increased their price target from $300.00 to $310.00 while issuing an "equal weight" rating on September 13th. Meanwhile, StockNews.com downgraded RH to a "sell" rating just days later.

Another firm, Stifel Nicolaus, maintained a "buy" rating but raised its price target from $375.00 to $420.00. BNP Paribas opted for a more conservative approach, reiterating an "underperform" rating with a target price of $253.00. TD Cowen also showed positive sentiment by increasing its price target from $325.00 to $350.00, along with a "buy" rating.

Overall, the analysis landscape for RH is mixed. Currently, three analysts have rated the stock as a sell, while six recommend holding. On the other hand, eight analysts have a buy rating on the company. As per MarketBeat.com, RH currently has an average rating of "Hold" and an average price target of approximately $345.73.

Current Trading Status of RH

At the opening of trading on Friday, shares of RH were priced at $381.51. The stock has demonstrated considerable volatility over the past year, with a twelve-month low of $212.43 and a high of $403.39. The company's fifty-day simple moving average sits at $345.55, while the 200-day moving average is at $296.23. The market capitalization of RH stands at around $7.04 billion, with a price-to-earnings (P/E) ratio of 224.42 and a P/E-to-growth (P/E/G) ratio of 2.44.

Latest Earnings Report

RH recently announced its earnings results on December 12th. The company reported earnings per share (EPS) of $2.48 for the quarter, falling short of the consensus estimate of $2.67 by $0.19. The company had a net margin of 1.13%, with a negative return on equity of 11.29%. Total revenue for the quarter reached $811.73 million, slightly below analysts' expectations of $812.19 million. In the same period last year, RH had reported a loss of ($0.42) EPS, indicating a year-over-year revenue increase of 8.1%. Analysts expect RH to achieve an EPS of 5.63 for the current fiscal year.

Insider Trading Activity

In other developments, insider Edward T. Lee sold 2,000 shares of RH on October 18th for an average price of $353.57, totaling $707,140. A filing with the SEC disclosed this transaction. Additionally, insider Stefan Duban sold 4,285 shares at an average price of $346.37 on September 19th, making the total transaction $1,484,195.45. This sale has significantly reduced Duban's ownership stake in the company. Over the past ninety days, insiders have sold a total of 8,285 shares valued at nearly $2.87 million, while corporate insiders hold about 28.10% of the company's total shares.

Institutional Investor Actions

Institutional investors have also been active with RH's stock. Blue Trust Inc. increased its position by 308.3% during the third quarter and now holds 98 shares valued at approximately $33,000. Ridgewood Investments LLC initiated a new position worth about $62,000 during the second quarter. Other firms like Centaurus Financial Inc. and Ameliora Wealth Management Ltd. have similarly acquired new stakes in RH. Currently, around 90.17% of RH is owned by hedge funds and other institutional investors.

About RH

RH operates as a retailer in the home furnishings sector. The company provides a variety of products, including furniture, lighting, textiles, bathware, décor, and outdoor items. RH sells its offerings through multiple online channels such as rh.com, rhteens.com, and waterworks.com, as well as through RH Galleries and outlet stores across the United States, Canada, the United Kingdom, and Germany.

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