These 5 Reddit Stocks Are Getting Crushed in March

3. RH (NYSE:RH)

1-Month Decline in Share Price as of March 29: 4.04%

Number of Hedge Fund Holders: 58

RH (NYSE:RH) is a home furnishings retailer headquartered in Corte Madera, California. The company sells furniture, lighting, textiles, and bathware. The stock has declined 4.04% in the last month. 

On March 9, Wells Fargo analyst Zachary Fadem maintained an Overweight rating on RH (NYSE:RH) but lowered the price target to $500 from $750 ahead of Home Furnishings reporting season. The analyst noted that the category slowed through Q4, and the rising inflation and supply chain challenges will likely drive higher levels of sales and margin variability.

According to the fourth quarter database of Insider Monkey, 58 hedge funds placed long bets on RH (NYSE:RH), compared to 57 funds in the prior quarter. Warren Buffett’s Berkshire Hathaway is the largest stakeholder of the company, with 1.8 million shares worth $973.5 million. 

Here is what Polen Global SMID Company Growth Fund has to say about RH (NYSE:RH) in its Q4 2021 investor letter:

“Our most significant detractors from performance over the fourth quarter includes RH. Upscale home-furnishings company RH underperformed over the quarter and the year amid rising costs that weighed on expectations and heightened concerns of reduced discretionary spending amid the ongoing pandemic. We expect the company to grow revenues as it rolls out additional galleries across the globe and thoughtfully expands into adjacencies like guest homes and design services. Along with steady margin growth through fixed cost leverage, which the company has consistently shown it can achieve, we believe this expansion should lead to favorable cash earnings growth going forward.”