RH Announces Chairman & CEO Gary Friedman Purchased $10 Million of RH Stock in the Open Market

Rhea-AI Summary

RH announced that Chairman & CEO Gary Friedman has purchased $10 million worth of RH stock in the open market at an average price of $216.10 per share, totaling 46,274 shares. This transaction increases Friedman's beneficial ownership to 5,051,337 shares, or 25.1% of RH's outstanding shares as of June 26, 2024. RH boasts its presence in the luxury lifestyle market, offering curated collections through retail galleries, sourcebooks, and various online platforms. This strategic move underscores Friedman's confidence in the company's future growth and stability.

Positive

• Chairman & CEO Gary Friedman purchased $10 million of RH stock, indicating confidence in the company's future.
• Friedman's beneficial ownership increased to 25.1% of RH's outstanding shares.

Negative

• None.

Insights

Financial Analyst

Gary Friedman's recent purchase of $10 million worth of RH stock sends a strong signal to the market. Insider buying often suggests that executives have confidence in the future prospects of their company. Mr. Friedman's acquisition at an average price of $216.10 per share increases his beneficial ownership to 25.1% of RH common stock. This aligns his interests more closely with shareholders, as he now has a substantial personal investment in the company's performance.

However, investors should consider the broader context. RH has faced challenges, including shifts in consumer spending and supply chain disruptions. Friedman's purchase may indicate optimism, but it does not guarantee future performance. It's important to review RH's financial health and market position independently.

From a technical perspective, large insider purchases can sometimes lead to short-term price increases as they are seen as a vote of confidence. Yet, this effect can be temporary if the underlying business issues persist. Therefore, while this is a positive sign, it should be weighed alongside other factors such as upcoming financial results and macroeconomic conditions.

Market Research Analyst

The purchase by Gary Friedman is noteworthy for market observers and retail investors. It highlights the potential undervaluation of RH stock in the market. Given that RH competes in the luxury lifestyle segment, consumer behavior and economic trends affecting discretionary spending are critical. Friedman's purchase might be interpreted as a belief in the resilience and growth of the luxury market despite recent economic uncertainties.

However, retail investors should remain cautious and not solely rely on insider buying as an indicator. It's important to analyze the competitive landscape, any shifts in consumer preferences and how RH's strategic initiatives are positioning the company for future growth. Detailed examination of RH's quarterly earnings, revenue trends and margins will provide a clearer picture of its financial robustness.

This insider purchase does provide a level of reassurance about management's confidence, yet it's one piece of a larger puzzle that investors need to consider.

CORTE MADERA, Calif.--(BUSINESS WIRE)-- RH announced today that Chairman & CEO Gary Friedman completed the purchase of $10 million of RH stock at an average price per share of $216.10 representing 46,274 shares.

With this purchase, Mr. Friedman beneficially owns as of June 26, 2024, 5,051,337 shares, or 25.1% of the outstanding shares of RH common stock, based on 18,445,222 shares outstanding as of June 7, 2024, as reported in RH’s first quarter fiscal 2024 Form 10-Q. This represents an increase in Mr. Friedman’s beneficial ownership by 0.2%. Mr. Friedman's beneficial ownership is determined for these purposes in accordance with the rules and regulations of the SEC and includes 1,700,000 shares of common stock issuable upon the exercise of options that were exercisable within 60 days of June 26, 2024. As of June 26, 2024, 583,334 of these options were subject to selling restrictions.

ABOUT RH

RH (NYSE: RH) is a curator of design, taste and style in the luxury lifestyle market. The company offers collections through its retail galleries, sourcebooks and online at RH.com, RHContemporary.com, RHModern.com, RHBabyandChild.com, RHTEEN.com, and Waterworks.com

FORWARD LOOKING STATEMENTS

This release contains forward-looking statements within the meaning of the federal securities laws. These statements include, but are not limited to, those relating to purchases of our common stock by our Chairman & CEO and any assumptions or implications of such statements, such as that our common stock may be undervalued. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. We cannot assure you that future developments affecting us will be those that we have anticipated. Important risks and uncertainties that could cause actual results to differ materially from our expectations include, among others, risks related to civil unrest; risks related to general economic conditions and the housing market as well as the impact of economic conditions on consumer confidence and spending; changes in customer demand for our products; our ability to anticipate consumer preferences and buying trends; consumer spending based on weather and other conditions beyond our control; risks related to the number of new business initiatives we are undertaking; our ability to obtain our products in a timely fashion or in the quantities required; risks related to our sourcing and supply chain including our dependence on imported products produced by foreign manufacturers and risks related to importation of such products, as well as those risks and uncertainties disclosed under the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in RH’s most recent Form 10-K and Forms 10-Q filed with the Securities and Exchange Commission, and similar disclosures in subsequent reports filed with the SEC, which are available on our investor relations website at ir.rh.com and on the SEC website at www.sec.gov. Any forward-looking statement made by us in this press release speaks only as of the date on which we make it. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by any applicable securities laws.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240627604569/en/

PRESS

truthgroup@RH.com

INVESTOR RELATIONS

Allison Malkin, 203.682.8225, allison.malkin@icrinc.com

Source: RH

FAQ

How many shares of RH stock did CEO Gary Friedman purchase?

Gary Friedman purchased 46,274 shares of RH stock.

What was the average price per share for Gary Friedman's recent stock purchase?

The average price per share was $216.10.

How much did Gary Friedman spend on RH stock in his latest purchase?

Gary Friedman spent $10 million on RH stock.

What is Gary Friedman's total beneficial ownership in RH after the recent purchase?

Gary Friedman's total beneficial ownership is 5,051,337 shares, or 25.1% of the outstanding shares.

As of when does Gary Friedman own 25.1% of RH's outstanding shares?

As of June 26, 2024, Gary Friedman owns 25.1% of RH's outstanding shares.