Is The RealReal Inc. (NASDAQ: REAL) Back In The Buying Zone?


Fidelity Management & Research Co.. recently announced the acquisition of new stake in The RealReal Inc. (NASDAQ:REAL). The institutional investor has increased its shareholding in the Consumer Cyclical company by 21.97% to 11.47 million shares with purchase of 2.07 million shares. This fresh investment now brings its stake to 13.20% valued currently at $156.41 million. In addition, Woodson Capital Management LP raised its holdings by 3.65 million to 5.75 million shares. And The Vanguard Group, Inc. has lifted its position by 140.31% or 2.25 million shares – to 3.86 million shares.

With over 1.66 million The RealReal Inc. (REAL) shares trading Friday and a closing price of $17.67 on the day, the dollar volume was approximately $29.26 million. The shares have shown a positive weekly performance of 4.99% and its price on 08/21/20 gained nearly 0.57%. Currently, there are 87.06M common shares owned by the public and among those 72.45M shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 13 analysts who have offered their price forecasts for REAL have a consensus price objective of $17.67. The analysts have set the share’s price value over the next 12 months at a high of $21.00 and a low of $13.00 should the stock experience a downside. Incidentally, analysts’ outlook for the The RealReal Inc. stock is 2.10 for the next 12 months. The average price target is 0.0% below its last price level and a downside to the estimated low will see the stock lose -35.92% over that period. But an upside of 15.86% will see the stock hit the forecast high price target while mean target price for the stock is $17.50.

Insiders at the company have transacted a total of 96 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 26 of these insider trades were purchases, accounting for 1,555,030 shares. Insider sales of the common stock occurred on 70 occasions, with total insider shares sold totaling 5,583,990 shares.

The top 3 mutual fund holders in The RealReal Inc. are Fidelity Blue Chip Growth Fund, Fidelity Select Retailing Portfol, and AB Small Cap Growth Portfolio. Fidelity Blue Chip Growth Fund owns 3.61 million shares of the company’s stock, all valued at over $49.2 million. The company bought an additional 0.39 million shares recently to bring their total holdings to about 4.15% of the shares outstanding. Fidelity Select Retailing Portfol bought 0.44 million shares to see its total holdings expand to 2.1 million shares valued at over $28.67 million and representing 2.42% of the shares outstanding. AB Small Cap Growth Portfolio bought 0.21 million shares to bring its total holdings to over 1.78 million shares at a value of $24.29 million. AB Small Cap Growth Portfolio now owns shares totaling to 2.05% of the shares outstanding.

Shares of The RealReal Inc. (NASDAQ: REAL) opened at $16.99, down -$0.58 from a prior closing price of $17.57. However, the script later closed the day at $17.67, up 0.57%. The company’s stock has a 5-day price change of 4.99% and 41.47% over the past three months. REAL shares are trading -6.26% year to date (YTD), with the 12-month market performance up to 5.87% higher. It has a 12-month low price of $5.00 and touched a high of $24.51 over the same period. Currently, 1.66 million shares have been traded, compared to an average intraday trading volume of 2.20 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 15.19%, 22.99%, and 25.76% respectively.

Institutional ownership of The RealReal Inc. (NASDAQ: REAL) shares accounts for 91.00% of the company’s 87.06M shares outstanding. Mutual fund holders own 28.44%, while other institutional holders and individual stakeholders account for 31.87% and 17.70% respectively.

It has a market capitalization of $1.54B. The earnings-per-share (ttm) stands at -$1.48. Price movements for the stock have been influenced by the stock’s volatility, which stands at 5.83% over the week and 6.41% over the month.

Analysts forecast that The RealReal Inc. (REAL) will achieve an EPS of -$0.37 for the current quarter, -$0.24 for the next quarter and -$0.96 for 2021. The lowest estimate earnings-per-share for the quarter is -$0.46 while analysts give the company a high EPS estimate of -$0.3. Comparatively, EPS for the current quarter was -$0.27 a year ago. Earnings per share for the fiscal year are expected to decrease by -13.90%, and 31.90% over the next financial year.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 13 brokerage firm advisors rate The RealReal Inc. (REAL) as a “Moderate Buy” at a consensus score of 2.10. Specifically, 9 Wall Street analysts polled rate the stock as a buy, while 3 of the 13 advise that investors “hold,” and 0 rated it as a “Sell.”

Looking at the support for the REAL, a number of firms have released research notes about the stock. BTIG Research stated their Buy rating for the stock in a research note on June 09, 2020, with the firm’s price target at $18. B. Riley FBR coverage for the The RealReal Inc. (REAL) stock in a research note released on April 03, 2020 offered a Neutral rating with a price target of $6. Needham was of a view on March 23, 2020 that the stock is Hold, while Nomura gave the stock Buy rating on March 18, 2020, issuing a price target of $16. Raymond James on their part issued Outperform rating on February 21, 2020.


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