Edward T. Lee, Chief Legal and Compliance Officer at RH (NYSE:RH), sold 2,000 shares of RH stock on October 18 for about $707,142, with share prices between $353.55 and $353.65. He also exercised stock options to buy another 2,000 shares at $101.25 each, totaling $202,500. After these transactions, Lee no longer owns any RH shares.
In other news, Restoration Hardware reported a 3.6% revenue increase year-over-year, reaching $830 million, and a 7% boost in demand in its Q2 2024 earnings call. However, the company lowered its full-year sales and EBIT guidance due to slower customer response to new products. Various financial firms adjusted their price targets for RH shares: Stifel raised it to $375 (Buy), Loop Capital to $320 (Hold), and CFRA from $293 to $309 despite a 57% drop in adjusted earnings per share for Q2. KeyBanc maintained a Sector Weight rating, while TD Cowen increased its target from $325 to $350 (Buy). These changes reflect a shifting financial outlook for Restoration Hardware.
InvestingPro Insights
Edward T. Lee’s stock sales occur as RH’s stock rises, showing a 53.35% total return in the past year and a 29.94% increase in the last three months. The stock is trading at 98.81% of its 52-week high, indicating strong investor confidence.
InvestingPro notes that RH’s high P/E ratio of 189.39 suggests investors expect significant growth. Although revenue growth has slowed (-4.25% over the past year), RH maintains a solid gross profit margin of 44.39%, underscoring its pricing power in the luxury market. For a detailed analysis, InvestingPro provides 12 additional tips on RH’s financial health and market performance.
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