RealReal (NASDAQ:REAL) Trading Down 7% – Here’s Why

The RealReal, Inc. (NASDAQ:REAL) was down 7% during mid-day trading on Thursday . The stock traded as low as $5.43 and last traded at $5.45. Approximately 717,769 shares were traded during mid-day trading, a decline of 79% from the average daily volume of 3,414,672 shares. The stock had previously closed at $5.86.

Wall Street Analysts Forecast Growth

A number of research analysts have commented on the company. UBS Group lowered their price target on RealReal from $10.00 to $9.00 and set a “neutral” rating for the company in a research report on Wednesday, February 26th. Wells Fargo & Company raised RealReal from an “equal weight” rating to an “overweight” rating and raised their price target for the stock from $4.00 to $15.00 in a research note on Monday, December 9th. Finally, Northland Securities boosted their price objective on shares of RealReal from $6.50 to $12.50 and gave the company an “outperform” rating in a research report on Tuesday, December 17th. Two analysts have rated the stock with a hold rating, four have assigned a buy rating and one has assigned a strong buy rating to the company. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $8.33.

RealReal Trading Up 2.0 %

The company has a market capitalization of $624.10 million, a P/E ratio of -4.35 and a beta of 3.00. The company’s 50 day moving average is $7.91 and its 200-day moving average is $5.91.

RealReal (NASDAQ:REAL) last issued its quarterly earnings results on Thursday, February 20th. The company reported ($0.62) EPS for the quarter, missing analysts’ consensus estimates of ($0.10) by ($0.52). The firm had revenue of $164.00 million during the quarter, compared to analysts’ expectations of $162.69 million. Analysts predict that The RealReal, Inc. will post -0.4 EPS for the current fiscal year.

Insider Activity at RealReal

In other RealReal news, CFO Gopal Ajay Madan sold 102,386 shares of the company’s stock in a transaction dated Thursday, February 20th. The shares were sold at an average price of $6.90, for a total transaction of $706,463.40. Following the transaction, the chief financial officer now owns 1,327,198 shares in the company, valued at approximately $9,157,666.20. This represents a 7.16 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Luke Thomas Friang sold 18,503 shares of RealReal stock in a transaction that occurred on Thursday, February 20th. The stock was sold at an average price of $6.90, for a total transaction of $127,670.70. Following the completion of the sale, the insider now owns 556,557 shares of the company’s stock, valued at $3,840,243.30. This represents a 3.22 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 654,761 shares of company stock valued at $5,592,306. 9.78% of the stock is owned by insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. AWM Investment Company Inc. raised its stake in RealReal by 40.3% during the 4th quarter. AWM Investment Company Inc. now owns 1,373,847 shares of the company’s stock valued at $15,016,000 after buying an additional 394,748 shares during the last quarter. PharVision Advisers LLC bought a new stake in shares of RealReal in the fourth quarter worth $133,000. Voloridge Investment Management LLC purchased a new stake in RealReal during the fourth quarter valued at $17,138,000. Two Sigma Advisers LP lifted its holdings in RealReal by 8.7% in the fourth quarter. Two Sigma Advisers LP now owns 2,275,100 shares of the company’s stock valued at $24,867,000 after acquiring an additional 181,300 shares during the period. Finally, Two Sigma Investments LP boosted its position in RealReal by 26.3% in the fourth quarter. Two Sigma Investments LP now owns 2,189,454 shares of the company’s stock worth $23,931,000 after purchasing an additional 456,425 shares during the last quarter. Institutional investors own 64.73% of the company’s stock.

About RealReal

The RealReal, Inc operates an online marketplace for resale luxury goods in the United State. The company offers various product categories, including women's fashion, men's fashion, jewelry, and watches. It primarily sells products through online marketplace and retail stores. The company was incorporated in 2011 and is headquartered in San Francisco, California.