The RealReal Inc. [REAL] stock Downgrade by Wells Fargo analyst, price target now $2

The RealReal Inc. [NASDAQ: REAL] gained 3.94% on the last trading session, reaching $1.32 price per share at the time. The company report on January 5, 2023 that The RealReal Focuses on New Initiatives in 2023 to Improve Consignor Experience.

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“Since our founding, we’ve been committed to, and have invested heavily in, making the luxury consignment experience seamless and frictionless. We became the first and only full-service luxury resale marketplace that does all the heavy lifting for our sellers and shoppers, we have always helped our consignors earn more than any other secondhand marketplace. These new areas of investment will help us deliver an elevated, luxury resale experience,” explains Rati Sahi Levesque, Co-CEO and President of The RealReal.

The RealReal Inc. represents 96.70 million in outstanding shares, while the company has a total market value of $132.79 million with the latest information. REAL stock price has been found in the range of $1.25 to $1.37.

If compared to the average trading volume of 3.60M shares, REAL reached a trading volume of 3161834 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 $4.03 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 2.30. 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.

Wells Fargo have made an estimate for The RealReal Inc. shares, keeping their opinion on the stock as Equal Weight, with their previous recommendation back on January 06, 2023. The new note on the price target was released on November 09, 2022, representing the official price target for The RealReal Inc. stock. Previously, the target price had yet another drop from $14 to $3, while Cowen kept a Market Perform rating on REAL stock. On August 10, 2022, analysts decreased their price target for REAL shares from 7 to 2.75.

The Average True Range (ATR) for The RealReal Inc. is set at 0.15, with the Price to Sales ratio for REAL stock in the period of the last 12 months amounting to 0.23.

Trading performance analysis for REAL stock

The RealReal Inc. [REAL] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 10.92. With this latest performance, REAL shares dropped by -7.04% in over the last four-week period, additionally sinking by -45.68% over the last 6 months – not to mention a drop of -87.91% 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 51.58, with the RSI for the last a single of trading hit 57.27, and the three-weeks RSI is set at 49.07 for The RealReal Inc. [REAL]. The present Moving Average for the last 50 days of trading for this stock 1.4089, while it was recorded at 1.2260 for the last single week of trading, and 2.8037 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 -43.09 and a Gross Margin at +53.44. The RealReal Inc.’s Net Margin is presently recorded at -50.48.

Return on Equity for this stock declined to -178.58, with Return on Assets sitting at -34.72.

The RealReal Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.70 and a Current Ratio set at 2.10.

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 $85 million, or 75.70% of REAL stock, in the hands of institutional investors. The top three institutional holders of REAL stocks are: BLACKROCK INC. with ownership of 6,855,738, which is approximately -12.052% of the company’s market cap and around 2.30% of the total institutional ownership; VANGUARD GROUP INC, holding 5,699,742 shares of the stock with an approximate value of $7.52 million in REAL stocks shares; and FIL LTD, currently with $5.04 million in REAL stock with ownership of nearly 1.197% of the company’s market capitalization.

Positions in The RealReal Inc. stocks held by institutional investors increased at the end of February and at the time of the February reporting period, where 73 institutional holders increased their position in The RealReal Inc. [NASDAQ:REAL] by around 9,668,461 shares. Additionally, 105 investors decreased positions by around 25,400,047 shares, while 35 investors held positions by with 29,328,221 shares. The mentioned changes placed institutional holdings at 64,396,729 shares, according to the latest SEC report filing. REAL stock had 27 new institutional investments in for a total of 3,764,122 shares, while 48 institutional investors sold positions of 11,247,585 shares during the same period.


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