Zacks Investment Research upgraded shares of Restoration Hardware (NYSE:RH) from a hold rating to a buy rating in a research note issued to investors on Wednesday. Zacks Investment Research currently has $152.00 price objective on the stock.
According to Zacks, “RH’s shares have gained 57% compared with the industry’s decline of 2.9% so far this year. Earnings estimates have also been trending upward for the current over the past 30 days, reflecting analysts' optimism over the stock's future earnings potential. RH has been exhibiting strong quarterly numbers buoyed by its focus on improving profit margins rather than chasing for sales, as well as creating a new and differentiating shopping experience with the addition of hospitality (restaurants and cafes) in new Full Line Design Galleries. The company’s efforts to redesign its supply chain network and rationalize product offerings are expected to boost growth. Initiatives like RH Modern, RH Teen, RH Hospitality, the redesign of RH Interiors Source Book and the rollout of Design Ateliers across the company’s retail galleries are expected to drive growth in 2018 and beyond.”
Several other research analysts also recently weighed in on the stock. ValuEngine downgraded shares of Restoration Hardware from a buy rating to a hold rating in a research report on Thursday, September 6th. Deutsche Bank lifted their target price on shares of Restoration Hardware from $160.00 to $178.00 and gave the stock a buy rating in a research report on Wednesday, September 5th. William Blair reissued an outperform rating on shares of Restoration Hardware in a research report on Wednesday, September 5th. Stifel Nicolaus lifted their target price on shares of Restoration Hardware from $125.00 to $142.00 and gave the stock a hold rating in a research report on Wednesday, September 5th. Finally, Piper Jaffray Companies lifted their target price on shares of Restoration Hardware to $165.00 and gave the stock a neutral rating in a research report on Wednesday, September 5th. One research analyst has rated the stock with a sell rating, eleven have given a hold rating and nine have assigned a buy rating to the company. The stock has a consensus rating of Hold and an average price target of $127.94.
Shares of Restoration Hardware stock traded down $0.41 during trading on Wednesday, hitting $134.87. The stock had a trading volume of 2,396 shares, compared to its average volume of 1,652,007. The company has a market cap of $2.93 billion, a P/E ratio of 44.69, a price-to-earnings-growth ratio of 0.74 and a beta of 2.00. The company has a debt-to-equity ratio of 4.99, a current ratio of 0.83 and a quick ratio of 0.17. Restoration Hardware has a 1 year low of $68.79 and a 1 year high of $164.49.
Restoration Hardware (NYSE:RH) last released its earnings results on Tuesday, September 4th. The company reported $2.05 earnings per share for the quarter, topping the consensus estimate of $1.75 by $0.30. The business had revenue of $642.00 million for the quarter, compared to the consensus estimate of $660.89 million. Restoration Hardware had a net margin of 4.29% and a return on equity of 520.85%. The firm’s quarterly revenue was up 3.7% compared to the same quarter last year. During the same period last year, the firm posted $0.65 earnings per share. analysts expect that Restoration Hardware will post 7.19 EPS for the current fiscal year.
In other Restoration Hardware news, Director Ali Rowghani sold 3,024 shares of Restoration Hardware stock in a transaction that occurred on Wednesday, September 12th. The shares were sold at an average price of $129.68, for a total value of $392,152.32. Following the completion of the sale, the director now directly owns 6,953 shares in the company, valued at $901,665.04. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Gary G. Friedman bought 7,622 shares of Restoration Hardware stock in a transaction on Thursday, September 13th. The stock was acquired at an average price of $131.19 per share, with a total value of $999,930.18. Following the completion of the purchase, the chief executive officer now directly owns 2,253,332 shares of the company’s stock, valued at $295,614,625.08. The disclosure for this purchase can be found here. Company insiders own 29.70% of the company’s stock.
Hedge funds and other institutional investors have recently bought and sold shares of the business. SG Americas Securities LLC lifted its stake in Restoration Hardware by 100.7% in the first quarter. SG Americas Securities LLC now owns 1,602 shares of the company’s stock valued at $153,000 after acquiring an additional 224,707 shares during the last quarter. Koch Industries Inc. acquired a new stake in Restoration Hardware in the first quarter valued at approximately $205,000. WINTON GROUP Ltd acquired a new stake in Restoration Hardware in the first quarter valued at approximately $272,000. Systematic Financial Management LP acquired a new stake in Restoration Hardware in the first quarter valued at approximately $369,000. Finally, Verition Fund Management LLC lifted its stake in Restoration Hardware by 16.2% in the first quarter. Verition Fund Management LLC now owns 3,926 shares of the company’s stock valued at $374,000 after acquiring an additional 547 shares during the last quarter.
Restoration Hardware Company Profile
RH, together with its subsidiaries, operates as a retailer in the home furnishings. It offers products in various categories, including furniture, lighting, textiles, bath ware, décor, outdoor and garden, tableware, and child and teen furnishings. The company provides its products through its retail galleries; and Source Books, a series of catalogs, as well as online through rh.com, restorationhardware.com, rhbabyandchild.com, rhteen.com, and rhmodern.com, as well as waterworks.com.
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