The stock of Therealreal Inc (NASDAQ: REAL) has increased by 6.46 when compared to last closing price of 5.11.Despite this, the company has seen a loss of -4.23% in its stock price over the last five trading days. seekingalpha.com reported 2025-02-22 that I’m downgrading The RealReal to a neutral rating after a sharp rebound rally over the past few months; wait for the stock to fall to ~$4.50-$5.00 before buying back in. The stock’s ~15% fall post-Q4 earnings reflects the fact that expectations have run high for The RealReal following its transition to a pure consignment model. Risks include tough macro conditions for luxury goods, especially in China, and significant competition from other consignment platforms and fashion houses.
Is It Worth Investing in Therealreal Inc (NASDAQ: REAL) Right Now?
Company’s 36-month beta value is 2.93.Analysts have differing opinions on the stock, with 3 analysts rating it as a “buy,” 0 as “overweight,” 3 as “hold,” and 1 as “sell.”
The public float for REAL is 85.81M, and currently, short sellers hold a 18.95% ratio of that floaft. The average trading volume of REAL on March 12, 2025 was 3.57M shares.
REAL’s Market Performance
The stock of Therealreal Inc (REAL) has seen a -4.23% decrease in the past week, with a -35.01% drop in the past month, and a -11.11% fall in the past quarter. The volatility ratio for the week is 9.24%, and the volatility levels for the past 30 days are at 8.45% for REAL. The simple moving average for the last 20 days is -19.19% for REAL’s stock, with a simple moving average of 8.97% for the last 200 days.
Analysts’ Opinion of REAL
Many brokerage firms have already submitted their reports for REAL stocks, with Wells Fargo repeating the rating for REAL by listing it as a “Overweight.” The predicted price for REAL in the upcoming period, according to Wells Fargo is $15 based on the research report published on December 09, 2024 of the previous year 2024.
Northland Capital, on the other hand, stated in their research note that they expect to see REAL reach a price target of $6. The rating they have provided for REAL stocks is “Outperform” according to the report published on September 16th, 2024.
Robert W. Baird gave a rating of “Neutral” to REAL, setting the target price at $2.75 in the report published on January 04th of the previous year.
REAL Trading at -34.58% from the 50-Day Moving Average
After a stumble in the market that brought REAL to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -52.18% of loss for the given period.
Volatility was left at 8.45%, however, over the last 30 days, the volatility rate increased by 9.24%, as shares sank -32.25% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -41.69% lower at present.
During the last 5 trading sessions, REAL fell by -4.23%, which changed the moving average for the period of 200-days by +25.93% in comparison to the 20-day moving average, which settled at $6.73. In addition, Therealreal Inc saw -50.23% in overturn over a single year, with a tendency to cut further losses.
Insider Trading
Reports are indicating that there were more than several insider trading activities at REAL starting from Madan Gopal Ajay, who sale 102,386 shares at the price of $6.90 back on Feb 20 ’25. After this action, Madan Gopal Ajay now owns 1,327,198 shares of Therealreal Inc, valued at $706,013 using the latest closing price.
Friang Luke Thomas, the Chief Product and Technology O of Therealreal Inc, sale 18,503 shares at $6.90 during a trade that took place back on Feb 20 ’25, which means that Friang Luke Thomas is holding 556,557 shares at $127,589 based on the most recent closing price.
Stock Fundamentals for REAL
Current profitability levels for the company are sitting at:
- -0.09 for the present operating margin
- 0.72 for the gross margin
The net margin for Therealreal Inc stands at -0.22. The total capital return value is set at -0.32.
Based on Therealreal Inc (REAL), the company’s capital structure generated 3.93 points at debt to capital in total, while cash flow to debt ratio is standing at 0.04. The debt to equity ratio resting at -1.34. The interest coverage ratio of the stock is -2.63.
Currently, EBITDA for the company is -79.44 million with net debt to EBITDA at -5.18. When we switch over and look at the enterprise to sales, we see a ratio of 1.63. The receivables turnover for the company is 43.01for trailing twelve months and the total asset turnover is 1.42. The liquidity ratio also appears to be rather interesting for investors as it stands at 0.94.
Conclusion
In a nutshell, Therealreal Inc (REAL) has experienced a bad performance in recent times. The stock has received mixed “buy” and “hold” ratings from analysts. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
