A home furnishings retailer that insiders are buying up a large amount of stock in here is Restoration Hardware (RH), which offers furniture, lighting, textiles, bathware, decor, outdoor and garden, as well as baby and child products. Insiders are buying this stock into big time strength, since shares are up 101% so far in 2013.
Restoration Hardware has a market cap of $2.63 billion and an enterprise value of $2.74 billion. This stock trades at a premium valuation, with a forward price-to-earnings of 36.77. Its estimated growth rate for this year is 45.5%, and for next year it's pegged at 25.2%. This is not a cash-rich company, since the total cash position on its balance sheet is $9.67 million and its total debt is $113.99 million.>>5 Rocket Stocks to Buy for Earnings Season A director just bought 100,000 shares, or about $7 million worth of stock, at $70 per share. From a technical perspective, RH is currently trending above its 50-day moving average, which is bullish. This stock has been downtrending over the last month, with shares dropping from its high of $77.36 to its recent low of $66 a share with heavy downside volume. Shares of RH have so far held above some near-term support levels at $66 to its 50-day moving average at $64.52 a share during this trend lower. If you're bullish on RH, then I would look for long-biased trades as long as this stock is trending above some key support levels at $66 or above its 50-day at $64.52 and then once it breaks out above some near-term overhead resistance at $70 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 603,381 shares. If that breakout hits soon, then RH will set up to re-test or possibly take out its 52-week high at $77.36 a share.
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