Shares of RH (NYSE: RH) jumped 16.8% in the month of January compared to where they closed out 2022, according to data provided by S&P Global market Intelligence. The upscale furniture retailer is navigating a challenging market, especially in housing, that CEO Gary Friedman says is in "free fall."
The luxury home decor company's stock lost half its value last year, which has apparently encouraged management to accelerate stock buybacks. In early January, RH filed a report with the Securities & Exchange Commission indicating that it had 23.6 million shares outstanding, which led Guggenheim analyst Steven Forbes to calculate that the retailer had repurchased $400 million worth of stock.
Forbes maintained his buy rating of the company and raised his one-year price target slightly to $350 per share. The stock was trading just below $277 at the time, indicating some 26% implied upside, and the price has narrowed the gap since then, closing yesterday at $324 per share.
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Why This Luxury Home Furnishing Retailer Was Up 16% in January