Zacks Investment Research upgraded shares of Restoration Hardware (NYSE:RH) from a hold rating to a strong-buy rating in a research note issued to investors on Friday morning. Zacks Investment Research currently has $120.00 price objective on the stock.
According to Zacks, “RH’s third-quarter earnings per share were in line with the Zacks Consensus Estimate while revenues missed the same. However, the company reported strong earnings despite the adverse effect of hurricanes Harvey and Irma, increasing more than 400% year over year. Total revenues increased 8% and comparable brand revenues rose 6% year over year. Adjusted operating margin expanded 480 bps and adjusted gross margin improved 460 bps to 34.1%. The new membership model (RH Members Program) is improving its brand image, streamlining operations and enhancing customer experience. Also, efforts to redesign its supply chain network and rationalize product offerings bode well.”
A number of other research firms have also recently weighed in on RH. Loop Capital raised their price target on shares of Restoration Hardware to $101.00 and gave the company a hold rating in a report on Friday, November 17th. Barclays raised their price target on shares of Restoration Hardware from $65.00 to $120.00 and gave the company an equal weight rating in a report on Wednesday, December 6th. Citigroup raised their price target on shares of Restoration Hardware from $1.37 to $135.00 and gave the company a buy rating in a report on Wednesday, December 6th. Stifel Nicolaus lowered their price target on shares of Restoration Hardware from $100.00 to $75.00 and set a hold rating on the stock in a report on Wednesday, December 6th. Finally, Bank of America raised their price target on shares of Restoration Hardware from $50.00 to $60.00 and gave the company an underperform rating in a report on Monday, November 20th. Three equities research analysts have rated the stock with a sell rating, thirteen have assigned a hold rating, five have issued a buy rating and one has assigned a strong buy rating to the stock. The stock has an average rating of Hold and a consensus price target of $79.07.
Restoration Hardware (RH) opened at $105.06 on Friday. The company has a current ratio of 1.47, a quick ratio of 0.28 and a debt-to-equity ratio of -48.40. The company has a market cap of $2,238.82, a PE ratio of 43.41, a price-to-earnings-growth ratio of 1.05 and a beta of 1.71. Restoration Hardware has a 12-month low of $24.41 and a 12-month high of $109.53.
Restoration Hardware (NYSE:RH) last posted its earnings results on Tuesday, December 5th. The company reported $1.04 EPS for the quarter, meeting analysts’ consensus estimates of $1.04. Restoration Hardware had a net margin of 0.45% and a return on equity of 20.04%. The business had revenue of $592.50 million for the quarter, compared to the consensus estimate of $592.46 million. During the same quarter last year, the firm posted $0.20 EPS. The company’s revenue for the quarter was up 7.9% on a year-over-year basis. equities research analysts expect that Restoration Hardware will post 2.92 earnings per share for the current fiscal year.
In other Restoration Hardware news, CEO Gary G. Friedman acquired 13,959 shares of the firm’s stock in a transaction on Tuesday, September 26th. The stock was acquired at an average cost of $71.64 per share, for a total transaction of $1,000,022.76. Following the purchase, the chief executive officer now owns 2,235,410 shares in the company, valued at approximately $160,144,772.40. The purchase was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, CEO Gary G. Friedman acquired 14,000 shares of the firm’s stock in a transaction on Thursday, September 14th. The shares were acquired at an average price of $70.94 per share, with a total value of $993,160.00. Following the completion of the purchase, the chief executive officer now owns 2,212,051 shares in the company, valued at approximately $156,922,897.94. The disclosure for this purchase can be found here. Insiders own 18.80% of the company’s stock.
Large investors have recently bought and sold shares of the company. Flinton Capital Management LLC increased its holdings in shares of Restoration Hardware by 41.4% during the 2nd quarter. Flinton Capital Management LLC now owns 1,584 shares of the company’s stock valued at $102,000 after purchasing an additional 464 shares in the last quarter. Riverhead Capital Management LLC increased its holdings in shares of Restoration Hardware by 58.2% during the 2nd quarter. Riverhead Capital Management LLC now owns 1,898 shares of the company’s stock valued at $122,000 after purchasing an additional 698 shares in the last quarter. Public Employees Retirement System of Ohio increased its holdings in shares of Restoration Hardware by 12.6% during the 1st quarter. Public Employees Retirement System of Ohio now owns 2,286 shares of the company’s stock valued at $106,000 after purchasing an additional 255 shares in the last quarter. Cornerstone Capital Management Holdings LLC. purchased a new position in shares of Restoration Hardware during the 3rd quarter valued at approximately $274,000. Finally, Teachers Advisors LLC purchased a new position in shares of Restoration Hardware during the 1st quarter valued at approximately $3,165,000. 95.71% of the stock is owned by hedge funds and other institutional investors.
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About Restoration Hardware
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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