Restoration Hardware shareholders: Who owns the most RH stock?
Restoration Hardware (RH) stock has accumulated a 51.2% loss since 2022 began. Challenging macroeconomic conditions in the US have resulted in “lower than expected demand”, according to RH CEO Gary Friedman.
The head of the luxury home furnishing retailer cited higher mortgage rates and a decline in luxury home sales as some of the headwinds the company is facing.
Who has taken the bulk of these losses? In this article, we share further details about who owns Restoration Hardware.
What is Restoration Hardware (RH)?
Restoration Hardware sells furniture, home décor and other similar items in the US. By the end of July 2022, the firm operated 67 galleries, 39 outlets and 14 waterworks showrooms.
The company has undergone several changes in its business model, including a rebranding process that aimed to position the retailer as a high-end supplier of home furnishing goods.
During the first semester of the 2022 fiscal year, the company generated total revenues of $1.95bn and net profits of $323m. Meanwhile, RH employed 6,500 associates by the end of January 2022.
In 2012, the company went public for a second time, under the ticker symbol RH. In the past 10 years, Restoration Hardware stock has produced gains of 741.5%. During that same period, the S&P 500 (US500) and the tech-heavy Nasdaq 100 (US100) indices have produced returns of 183.3% and 363.9%, respectively.
What is your sentiment on RH?
Who owns RH stocks?
According to Restoration Hardware’s latest annual report filed with the US Securities and Exchange Commission (SEC), 15 stockholders of record held the company’s common stock, as of 29 January 2022. This number excludes anyone holding stock through a brokerage firm.
Who owns the most RH stock? The five most prominent individual Restoration Hardware shareholders, according to data from Market Screener, are Warren Buffett’s conglomerate Berkshire Hathaway (BRKb), Catterton Management, Tiger Global Management, iBarrow Hanley Global Investors and Lone Pine Capital.
Friedman owns 2.98 million shares. This gives him control over 12.1% of the voting power.
Catterton is the largest of all non-insider shareholders, with 4.53 million shares (an 18.4% stake), followed by Tiger Global Management, with 3.19 million shares (a 12.9% stake).
Berkshire Hathaway owns 2.17 million RH shares, resulting in an 8.8% stake, while Barrow Hanley owns 1.94 million shares, for a 7.9% stake
All RH shares have voting rights, meaning that Restoration Hardware shareholders have a say in the company’s affairs in line with the proportion of ownership they hold in the firm.
Individuals who buy Restoration Hardware stock via brokers appoint them as a proxy, meaning that the broker can vote on their behalf. However, they can also opt to cast a vote on the company’s key decisions at Restoration Hardware shareholders meetings.
Institutional Restoration Hardware shareholders
Who owns the most RH shares? The following is a list of the company’s major shareholders, according to data from Market Screener, as of 8 September 2022.
Catterton Management Co. – 18.4%
Catterton Management is an investment fund specialising in consumer brands. The company oversees $30bn in assets and has completed over 250 investments since it was founded in 1979.
In 2008, Catterton partnered with Gary Friedman, RH’s current CEO, to acquire Restoration Hardware at a price of $4.50 a share in cash.
Tiger Global Management – 12.9%
Tiger Global Management is both a hedge fund and a private equity firm.
The public equity arm of the firm adopts techniques such as fundamental analysis and other similar approaches to invest in seemingly undervalued high-quality businesses led by outstanding management teams. The private equity arm identifies businesses with untapped potential, acquires them to improve their performance and exit the investment at a profit. Tiger Global oversees assets of over $100bn.
Berkshire Hathaway – 8.8%
Berkshire Hathaway (BKRb) is a business conglomerate run by Warren Buffett. The so-called ‘Oracle of Omaha’, is known for his outstanding track record of successful investments.
Buffet bought a stake in RH in 2019 – two years after the company was rebranded. Berkshire initially bought 1.2 million shares in the luxury home furnishing retailer and has progressively upped its stake to 2.17 million.
Barrow, Hanley, Mewhinney & Strauss LLC – 7.9%
Barrow Hanley Global Investors is an investment management firm that manages a portfolio of both equity and fixed-income instruments.
The fund follows the principles of value investing to identify opportunities in the financial markets. The company reportedly manages over $40bn in assets for its clients and it is owned by Perpetual Limited – an Australian financial services firm.
Lone Pine Capital – 7.2%
Lone Pine Capital is a hedge fund headed by billionaire investor Stephen Mandel. The fund employs long/short and long-only strategies to profit from different kinds of opportunities within the marketplace and reportedly manages over $10bn in assets for its investors. Lone Capital piled on RH shares back in 2021 a couple of years after Buffett disclosed his position in the company.
Restoration Hardware stock owners among insiders
The following individuals are considered the largest shareholders of Restoration Hardware among the company’s insiders according to data from GuruFocus. This list includes the firm’s top executives and members of the board of directors.
Gary Friedman – 2.98 million shares
Eri Chaya – 63,643 shares
Carlos Alberini – 45,982 shares
GuruFocus data points to insiders owning around 13.2% of all outstanding common shares of Restoration Hardware including Friedman, who owns 12.2% of the firm.
These shares are typically granted to insiders by the company via stock options as part of their compensation package. However, in Friedman’s case, he bought most of the shares back in 2008 when he partnered with Catterton to take the firm private.
Gary Friedman
Friedman is the CEO and Chairman of the Board of RH. He was appointed Chairman in March 2005, retaining the position until June 2008. He led the buyout transaction alongside Catterton Management and was appointed CEO of the firm. Before joining RH, Friedman served as a top executive at Williams-Sonoma, an American publicly traded consumer retail company that sells kitchenware and home furnishings. Forbes reports that Friedman’s net worth stands at around $1.3bn.
Eri Chaya
Eri Chaya is RH president, chief creative and chief merchandising officer. Her job is to lead all activities related to brand development and product design. She joined the firm in 2006, having previously served as creative director for Goodby and Banana Republic.
Carlos Alberini
A member of the RH Board of Directors, Alberini was the firm’s Co-Chief Executive Officer sharing the role with Friedman. Before joining RH’s ranks, he served in multiple key positions at Guess, including Chief Operating Officer and Chief Financial Officer.
Who has ownership of a stock shouldn’t be the sole reason for making any investment or trading decisions. Your decisions should depend on your goals, risk tolerance, and portfolio size. Remember, it’s important to carry out your own research before trading. And never trade money that you can’t afford to lose.
FAQs
Is Restoration Hardware publicly traded?
Who is the biggest shareholder of Restoration Hardware?
As of 9 September 2022, Catterton Management Co. is the largest shareholder, with 4.53 million shares, representing an 18.4% stake in the company. Catterton partnered with Friedman in 2008 to take the firm private.
Will RH stock go up?
Nobody knows what the price of a financial instrument will do. Investors should perform adequate due diligence on an asset before investing.
We recommend that you always do your own research. Look at the latest market trends, news, technical and fundamental stellar price analysis, and expert opinion before making any investment decision. Keep in mind that past performance is no guarantee of future returns. And never invest money that you cannot afford to lose.
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