The RealReal Inc. [NASDAQ: REAL] gained 0.43% or 0.07 points to close at $16.49 with a heavy trading volume of 2742048 shares. The company report on July 6, 2021 that The RealReal Provides Monthly Business Update.
The RealReal (Nasdaq: REAL)—the world’s largest online marketplace for authenticated, resale luxury goods— provided a business update. Q2 GMV was approximately $350 million, an increase of 91% Y/Y and 53% compared to the same period in 2019. This compares to the financial outlook the company provided on May 10, 2021, for Q2 GMV in the range of $320 million to $330 million. In addition, Q2 AOV was approximately $520, an increase of 25% Y/Y and 15% compared to the same period in 2019.
The COVID-19 pandemic continues to change consumer and business behavior in ways that are difficult to predict. The company believes that disclosing monthly GMV and AOV will provide additional transparency regarding the effects of the COVID-19 pandemic on its business. Consistent with SEC guidance regarding the impacts of the COVID-19 pandemic, the company intends to provide monthly GMV and AOV through the end of 2021.
It opened the trading session at $16.44, the shares rose to $16.89 and dropped to $15.625, the range by which the price of stock traded the whole day. The daily chart for REAL points out that the company has recorded -41.11% loss over the past six months. However, it is still -34.83% lower than its most recent low trading price.
If we look at the average trading volume of 2.71M shares, REAL reached to a volume of 2742048 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Here is what top equities market gurus are saying about The RealReal Inc. [REAL]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for REAL shares is $28.67 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on REAL stock is a recommendation set at 2.40. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
Needham have made an estimate for The RealReal Inc. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on July 08, 2021. The new note on the price target was released on May 11, 2021, representing the official price target for The RealReal Inc. stock.
The Average True Range (ATR) for The RealReal Inc. is set at 1.15, with the Price to Sales ratio for REAL stock in the period of the last 12 months amounting to 4.77. The Price to Book ratio for the last quarter was 7.08, with the Price to Cash per share for the same quarter was set at 5.91.
Trading performance analysis for REAL stock
The RealReal Inc. [REAL] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -8.24. With this latest performance, REAL shares dropped by -16.12% in over the last four-week period, additionally sinking by -41.11% over the last 6 months – not to mention a rise of 14.91% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for REAL stock in for the last two-week period is set at 35.28, with the RSI for the last a single of trading hit 28.87, and the three-weeks RSI is set at 39.02 for The RealReal Inc. [REAL]. The present Moving Average for the last 50 days of trading for this stock 18.13, while it was recorded at 16.73 for the last single week of trading, and 19.96 for the last 200 days.
The RealReal Inc. [REAL]: A deeper dive into fundamental analysis
Operating Margin for any stock indicates how profitable investing would be, and The RealReal Inc. [REAL] shares currently have an operating margin of -57.62 and a Gross Margin at +56.25. The RealReal Inc.’s Net Margin is presently recorded at -58.62.
Return on Total Capital for REAL is now -42.70, given the latest momentum, and Return on Invested Capital for the company is -44.26. Return on Equity for this stock declined to -66.32, with Return on Assets sitting at -32.80. When it comes to the capital structure of this company, The RealReal Inc. [REAL] has a Total Debt to Total Equity ratio set at 145.99. Additionally, REAL Total Debt to Total Capital is recorded at 59.35, with Total Debt to Total Assets ending up at 46.15. Long-Term Debt to Equity for the company is recorded at 138.15, with the Long-Term Debt to Total Capital now at 56.16.
Reflecting on the efficiency of the workforce at the company, The RealReal Inc. [REAL] managed to generate an average of -$67,524 per employee. Receivables Turnover for the company is 40.01 with a Total Asset Turnover recorded at a value of 0.56.The RealReal Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 4.00 and a Current Ratio set at 4.30.
The RealReal Inc. [REAL]: An earnings per share (EPS) analysis
The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for REAL. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for The RealReal Inc. go to 38.60%.
An analysis of insider ownership at The RealReal Inc. [REAL]
There are presently around $1,412 million, in the hands of institutional investors. The top three institutional holders of REAL stocks are: FMR LLC with ownership of 11,096,068, which is approximately 9.594% of the company’s market cap and around 4.50% of the total institutional ownership; VANGUARD GROUP INC, holding 5,691,598 shares of the stock with an approximate value of $93.85 million in REAL stocks shares; and BLACKROCK INC., currently with $81.08 million in REAL stock with ownership of nearly 4.973% of the company’s market capitalization.
Positions in The RealReal Inc. stocks held by institutional investors increased at the end of August and at the time of the August reporting period, where 104 institutional holders increased their position in The RealReal Inc. [NASDAQ:REAL] by around 23,687,576 shares. Additionally, 91 investors decreased positions by around 17,803,836 shares, while 29 investors held positions by with 44,139,737 shares. The mentioned changes placed institutional holdings at 85,631,149 shares, according to the latest SEC report filing. REAL stock had 43 new institutional investments in for a total of 10,282,098 shares, while 39 institutional investors sold positions of 8,242,160 shares during the same period.