BlackRock Inc. Acquires 581,710 Shares of RH $RH

BlackRock Inc. grew its holdings in RH (NYSE:RH) by 41.7% during the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 1,978,271 shares of the company’s stock after purchasing an additional 581,710 shares during the quarter. BlackRock Inc. owned about 0.10% of RH worth $325,881,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other institutional investors have also recently added to or reduced their stakes in RH. Durable Capital Partners LP grew its position in shares of RH by 125.1% during the 2nd quarter. Durable Capital Partners LP now owns 646,097 shares of the company’s stock worth $122,119,000 after buying an additional 359,101 shares during the period. Jacobs Levy Equity Management Inc. increased its stake in shares of RH by 1,797.7% in the 4th quarter. Jacobs Levy Equity Management Inc. now owns 246,355 shares of the company’s stock valued at $44,134,000 after acquiring an additional 233,373 shares in the last quarter. Alliancebernstein L.P. lifted its position in shares of RH by 66.1% during the 3rd quarter. Alliancebernstein L.P. now owns 573,666 shares of the company’s stock valued at $116,546,000 after acquiring an additional 228,229 shares during the period. Alyeska Investment Group L.P. lifted its position in shares of RH by 200.5% during the 3rd quarter. Alyeska Investment Group L.P. now owns 297,694 shares of the company’s stock valued at $60,480,000 after acquiring an additional 198,615 shares during the period. Finally, Senvest Management LLC boosted its stake in RH by 30.1% during the fourth quarter. Senvest Management LLC now owns 842,577 shares of the company’s stock worth $150,948,000 after acquiring an additional 194,773 shares in the last quarter. 90.17% of the stock is owned by institutional investors and hedge funds.

Key RH News

Here are the key news stories impacting RH this week:

• Neutral Sentiment: RH’s latest reported quarter showed revenue of $800.3 million, slightly above analyst expectations of $792.6 million, while its adjusted loss of $1.97 per share was narrower than the expected $2.12 loss. However, revenue declined 1.7% year over year and profitability remained weak.
• Neutral Sentiment: The stock remains volatile, with a beta of 1.87, and trades below its 50-day moving average while remaining near its 200-day average. This suggests investor sentiment is still cautious despite the quarterly earnings beat.
• Negative Sentiment: RH’s low quick ratio of 0.32 and substantial debt-to-equity ratio indicate balance-sheet and liquidity risks that may remain concerns for investors, particularly if the luxury home-furnishings market weakens.

RH Price Performance

RH stock opened at $148.50 on Thursday. The company has a debt-to-equity ratio of 54.96, a quick ratio of 0.32 and a current ratio of 1.13. The business has a 50-day simple moving average of $169.56 and a two-hundred day simple moving average of $154.95. The company has a market capitalization of $2.81 billion, a P/E ratio of 28.67, a price-to-earnings-growth ratio of 3.36 and a beta of 1.87. RH has a 52-week low of $106.30 and a 52-week high of $257.00.

RH (NYSE:RH) last posted its earnings results on Thursday, June 11th. The company reported ($1.97) earnings per share for the quarter, beating analysts’ consensus estimates of ($2.12) by $0.15. The company had revenue of $800.33 million for the quarter, compared to analyst estimates of $792.55 million. RH had a return on equity of 423.79% and a net margin of 3.01%.The company’s revenue for the quarter was down 1.7% on a year-over-year basis. During the same quarter last year, the company earned $0.13 earnings per share. Research analysts expect that RH will post 4.2 EPS for the current fiscal year.

Insider Activity

In other RH news, CEO Gary G. Friedman sold 48,238 shares of the company’s stock in a transaction dated Wednesday, July 8th. The shares were sold at an average price of $158.66, for a total value of $7,653,441.08. Following the completion of the sale, the chief executive officer directly owned 3,226,337 shares of the company’s stock, valued at approximately $511,890,628.42. This represents a 1.47% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, Director Carlos Alberini acquired 11,388 shares of the firm’s stock in a transaction on Monday, June 29th. The stock was purchased at an average price of $160.90 per share, with a total value of $1,832,329.20. Following the purchase, the director owned 32,190 shares in the company, valued at approximately $5,179,371. The trade was a 54.74% increase in their position. The SEC filing for this purchase provides additional information. Insiders sold a total of 132,749 shares of company stock worth $21,856,812 over the last quarter. Insiders own 26.90% of the company’s stock.

Analysts Set New Price Targets

Several equities research analysts have weighed in on the stock. UBS Group decreased their price target on shares of RH from $160.00 to $155.00 and set a “neutral” rating for the company in a research note on Tuesday, June 9th. Wells Fargo & Company increased their price objective on shares of RH from $175.00 to $225.00 and gave the stock an “overweight” rating in a research report on Tuesday, August 11th. Robert W. Baird boosted their target price on RH from $125.00 to $150.00 and gave the company a “neutral” rating in a research report on Friday, June 12th. Citigroup increased their price target on RH from $150.00 to $166.00 and gave the stock a “neutral” rating in a report on Monday, June 15th. Finally, KeyCorp reaffirmed a “sector weight” rating on shares of RH in a research report on Friday, June 12th. Seven equities research analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and three have given a Sell rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Hold” and a consensus target price of $173.36.

About RH

RH, formerly Restoration Hardware, is a design-driven luxury retailer specializing in high-end home furnishings, décor, textiles, lighting and outdoor living products. The company offers a curated collection of furniture pieces—including seating, casegoods, beds and dining items—alongside rugs, art and decorative accessories. RH’s product lines are organized into distinct collections, each reflecting a cohesive design philosophy and premium craftsmanship aimed at the residential and hospitality markets.

Founded in 1979 in Eureka, California, by Stephen Gordon, Restoration Hardware began as a small warehouse in Northern California.