Restoration Hardware Holdings Inc. (NYSE:RH) was downgraded by Zacks Investment Research from a “strong-buy” rating to a “hold” rating in a research report issued on Wednesday.

According to Zacks, “RH’s shares widely outperformed the industry to which it belongs, year to date. The company’s efforts to redesign its supply chain network, rationalize product offerings and the Waterworks acquisition are expected to boost growth. Initiatives like RH Modern, RH Teen, RH Hospitality, the redesign of RH Interiors Source Book, the rollout of Design Ateliers across the company’s retail Galleries are expected to contribute to growth in 2017 and beyond. Though RH’s plans to rationalize product offering, reduce inventories and boost free cash flow will drive revenues and cash flow, it is expected to dent earnings in 2017. Also, higher dependence on imports makes it vulnerable to uncertain macro conditions.”

Several other research analysts have also recently weighed in on RH. Citigroup Inc. started coverage on Restoration Hardware Holdings in a research report on Friday, April 28th. They issued a “buy” rating and a $56.00 price objective on the stock. Oppenheimer Holdings, Inc. reissued a “hold” rating on shares of Restoration Hardware Holdings in a research report on Saturday, May 6th. Buckingham Research raised Restoration Hardware Holdings from an “underperform” rating to a “neutral” rating in a research report on Monday, May 8th. Loop Capital boosted their price objective on Restoration Hardware Holdings from $31.00 to $45.00 and gave the stock a “hold” rating in a research report on Monday, May 8th. Finally, Gordon Haskett started coverage on Restoration Hardware Holdings in a research report on Tuesday, May 9th. They issued a “hold” rating and a $58.00 price objective on the stock. Three research analysts have rated the stock with a sell rating, fifteen have issued a hold rating and three have given a buy rating to the company’s stock. Restoration Hardware Holdings presently has a consensus rating of “Hold” and a consensus target price of $54.07.

Restoration Hardware Holdings (NYSE RH) traded up 0.10% during midday trading on Wednesday, reaching $52.23. The company had a trading volume of 423,400 shares. The stock’s 50 day moving average is $65.09 and its 200 day moving average is $48.88. The firm has a market capitalization of $1.73 billion, a price-to-earnings ratio of 136.73 and a beta of 1.47. Restoration Hardware Holdings has a 12-month low of $24.41 and a 12-month high of $79.91.

Restoration Hardware Holdings (NYSE:RH) last announced its earnings results on Thursday, June 1st. The company reported $0.05 earnings per share (EPS) for the quarter, meeting the Thomson Reuters’ consensus estimate of $0.05. The company had revenue of $562.10 million for the quarter, compared to analysts’ expectations of $560.30 million. Restoration Hardware Holdings had a return on equity of 6.42% and a net margin of 0.66%. Restoration Hardware Holdings’s quarterly revenue was up 23.4% on a year-over-year basis. During the same quarter in the previous year, the firm earned ($0.05) earnings per share. Equities research analysts expect that Restoration Hardware Holdings will post $2.14 earnings per share for the current year.

Restoration Hardware Holdings declared that its Board of Directors has approved a share repurchase plan on Thursday, May 4th that permits the company to buyback $700.00 million in outstanding shares. This buyback authorization permits the company to reacquire up to 37.6% of its shares through open market purchases. Shares buyback plans are often a sign that the company’s board of directors believes its shares are undervalued.

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Hedge funds have recently added to or reduced their stakes in the stock. Flinton Capital Management LLC raised its stake in Restoration Hardware Holdings by 41.4% in the second quarter. Flinton Capital Management LLC now owns 1,584 shares of the company’s stock worth $102,000 after buying an additional 464 shares during the last quarter. Public Employees Retirement System of Ohio raised its stake in Restoration Hardware Holdings by 12.6% in the first quarter. Public Employees Retirement System of Ohio now owns 2,286 shares of the company’s stock worth $106,000 after buying an additional 255 shares during the last quarter. Riverhead Capital Management LLC raised its stake in Restoration Hardware Holdings by 58.2% in the second quarter. Riverhead Capital Management LLC now owns 1,898 shares of the company’s stock worth $122,000 after buying an additional 698 shares during the last quarter. Sei Investments Co. raised its stake in Restoration Hardware Holdings by 36.7% in the first quarter. Sei Investments Co. now owns 2,720 shares of the company’s stock worth $126,000 after buying an additional 730 shares during the last quarter. Finally, Ameritas Investment Partners Inc. bought a new stake in Restoration Hardware Holdings during the first quarter worth about $155,000.

Restoration Hardware Holdings Company Profile

RH, formerly Restoration Hardware Holdings, Inc, is a retailer in the home furnishings marketplace. As of January 28, 2017, the Company had two segments: RH Segment and Waterworks. It offers merchandise assortments across a range of categories, including furniture, lighting, textiles, bathware, decor, outdoor and garden, tableware, and child and teen furnishings.

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Analyst Recommendations for Restoration Hardware Holdings (NYSE:RH)

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