RH Under Investigation for Securities Fraud, Stock Plummets Over 40%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: PRnewswire
- Investigation Launched: Robbins Geller Rudman & Dowd LLP is investigating potential violations of U.S. federal securities laws by RH, focusing on whether top executives made false or misleading statements that could have led to investor losses.
- Disappointing Earnings: On April 2, 2025, RH reported its fiscal year 2024 results, revealing earnings per share of $1.58 and revenues of $812 million, both falling short of previous guidance of $1.92 and $830 million, resulting in a stock price drop of over 40%.
- Investor Losses: Following the disappointing earnings report, RH's stock plummeted, causing significant losses for investors, prompting the law firm to seek information from affected investors to assist in the investigation.
- Legal Expertise: Robbins Geller is recognized as a leading firm in securities fraud and shareholder litigation, having secured over $2.5 billion for investors in 2024 alone, underscoring its capability to represent investors effectively in high-stakes cases.
Analyst Views on RH
Wall Street analysts forecast RH stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for RH is 274.30 USD with a low forecast of 200.00 USD and a high forecast of 385.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
13 Analyst Rating
7 Buy
5 Hold
1 Sell
Moderate Buy
Current: 179.150
Low
200.00
Averages
274.30
High
385.00
Current: 179.150
Low
200.00
Averages
274.30
High
385.00
About RH
RH is a retailer and luxury lifestyle brand operating primarily in the home furnishings market. The Company offers collections through its retail galleries, sourcebooks, and online at RH.com, RHModern.RH.com, RHBabyandChild.RH.com, RHTEEN.RH.com and Waterworks.com. The Company offers merchandise assortments across a number of categories, including furniture, lighting, textiles, bathware, decor, outdoor and garden, and baby, child and teen furnishings. Its segments include RH Segment, Waterworks and Real Estate. The RH Segment and Waterworks segments include all sales channels accessed by its customers, including sales through retail locations and outlets, including hospitality, websites, sourcebooks, and the trade and contract channels. The Real Estate segment represents operations associated with certain of its equity method investments and consolidated variable interest entities that are non-wholly owned subsidiaries and have operations that are not directly related to its segments.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
