Shares of the home-furnishings company RH (NYSE:RH) are in the spotlight as its CEO and Chairman, Gary Friedman, recently bought RH stock worth $10 million. This points to the insider’s confidence about the company’s long-term growth prospects. Following the release of the news, RH stock gained 2% in yesterday’s after-hours trading session.
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It is worth noting that RH stock has declined 41.1% from its 52-week high of $406.38. Moreover, it has fallen by about 31% in the past three months. This decline resulted from a series of disappointing earnings reports. For the past three quarters, earnings have missed analyst estimates, owing to shipping and weather disruptions.
Closer Look at the Insider’s Trades
According to the SEC filing, Friedman bought 46,274 shares of the company in multiple transactions on June 25 and June 26. The purchase price ranged between $214.46 and $219.85. Following the latest buy transaction, he holds over 3.3 million shares of RH.
It should be noted that Friedman boasts an impressive track record. As per the data collected by TipRanks, the insider has had a success rate of 58% over the past year, with an average return of 23% per transaction.
Investors may benefit from keeping an eye on transactions made by key insiders, as these trades typically reflect their trust in the company’s future. Interestingly, TipRanks offers daily insider transactions as well as a list of top corporate insiders. It also provides a list of hot stocks that boast either a Very Positive or Positive insider confidence signal.
Investor Sentiment for RH Stock Is Currently Positive
Similar to the CEO’s bullish outlook on RH stock, the sentiment among TipRanks investors is currently Very Positive.
Based on the 742,848 portfolios tracked by TipRanks, 4.6% of portfolios have increased their holding of RH stock in the last 30 days. This suggests that investors in the company are fairly confident about its future.
Is RH a Good Stock to Buy?
Overall, RH has a Hold consensus rating on TipRanks based on four Buy, nine Hold, and one Sell recommendations. The analysts’ average price target on RH stock of $294.25 implies about 23% upside potential.
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