The RealReal, Inc. (NASDAQ: REAL) has received a consensus recommendation of “Moderate Buy” from a group of nine analysts, according to MarketBeat. This assessment reflects a diverse range of opinions, with one analyst recommending a sell, two suggesting a hold, five endorsing a buy, and one issuing a strong buy recommendation.
The average target price set by these analysts for the stock is approximately $17.43 over the next twelve months. Recent reports from various brokerages have contributed to this outlook. For instance, Roth Capital recently assigned a price target of $17.50 with a buy rating on October 29, 2023. Conversely, Weiss Ratings reiterated a “sell (d-)” rating on October 8, 2023.
Wells Fargo & Company made headlines by raising their price objective for RealReal from $15.00 to $20.00 and giving the stock an “overweight” rating in a report released on December 16, 2023. Meanwhile, Wall Street Zen downgraded RealReal from a buy to a hold rating on January 10, 2024. Northland Securities also set a price target of $20.00 in a report published earlier this month.
Institutional Investor Activity
Institutional investors have shown notable activity regarding RealReal shares. Diversified Trust Co. increased its stake by 13.5% in the fourth quarter, now holding 32,509 shares valued at approximately $513,000 after acquiring an additional 3,874 shares. Similarly, Park Avenue Securities LLC boosted its holdings by 8.1%, owning a total of 45,282 shares valued at around $715,000.
Tudor Investment Corp ET AL significantly expanded its position by 25.8% during the third quarter, now owning 689,998 shares valued at approximately $7.34 million. New investments from Penn Capital Management Company LLC and CIBC Bancorp USA Inc. were also reported, with the former purchasing a new position valued at about $12.59 million.
Overall, institutional investors hold 64.73% of RealReal’s stock, indicating strong confidence from large stakeholders in the company’s future.
RealReal’s Market Performance
As of Tuesday, the RealReal stock opened at $16.32, with a market capitalization of $1.90 billion. The stock’s performance has shown significant volatility, with a one-year low of $4.61 and a high of $17.25. The company has a price-to-earnings (P/E) ratio of -11.83 and a beta of 2.60, indicating its higher sensitivity to market fluctuations.
The RealReal recently released its earnings results on November 10, 2023, reporting an earnings per share (EPS) of ($0.49), which fell short of the consensus estimate of ($0.14) by ($0.35). Revenue for the quarter reached $173.57 million, surpassing analyst expectations of $169.01 million. Analysts predict that RealReal will report an EPS of ($0.40) for the current year.
Founded in 2011 by entrepreneur Julie Wainwright, The RealReal operates an online marketplace devoted to the authenticated resale of luxury goods. Headquartered in San Francisco, the company has carved a niche in the luxury market by combining e-commerce technology with a dedicated team of experts to facilitate a seamless experience for buyers and sellers of secondhand luxury items. The core of The RealReal’s business model revolves around its consignment service, allowing individuals to sell pre-owned luxury products through a managed process.
