Kettle Hill Loads Up With 161,000 Shares of RH Worth $28.9 Million
Key Points
Kettle Hill Capital Management, LLC acquired 161,122 shares of RH; estimated trade size was $28.87 million based on quarterly average pricing.
The quarter-end position value increased by $28.87 million, reflecting both share purchases and price changes.
Position accounts for a 6.4% change in reportable assets under management.
Post-trade stake: 161,122 shares valued at $28.87 million.
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On February 13, 2026, Kettle Hill Capital Management, LLC disclosed a new position in RH (NYSE:RH).
What happened
According to an SEC filing dated February 13, 2026, Kettle Hill Capital Management, LLC reported acquiring 161,122 shares of RH as a new position. The estimated transaction value for the quarter was $28.87 million, based on the average share price over the period. The quarter-end value of the position was also $28.87 million, reflecting both the new shares and any price movement during the fourth quarter.
What else to know
- This new position represents 6.4% of Kettle Hill Capital Management’s reportable U.S. equity assets as of December 31, 2025.
- Top holdings after the filing include:
- NYSE: ESTC: $29.69 million (6.6% of AUM)
- NYSE: U: $29.06 million (6.5% of AUM)
- NYSE: RH: $28.87 million (6.4% of AUM)
- NASDAQ:PENN: $26.16 million (5.8% of AUM)
- NASDAQ:WYNN: $25.89 million (5.8% of AUM)
- As of February 13, 2026, RH shares were priced at $205.06, down 46.1% over the past year and underperforming the S&P 500 by 57.9 percentage points.
Company overview
| Metric | Value |
|---|---|
| Price (as of market close February 13, 2026) | $205.06 |
| Market capitalization | $3.85 billion |
| Revenue (TTM) | $3.41 billion |
| Net income (TTM) | $109.93 million |
Company snapshot
- Offers a broad range of home furnishings, including furniture, lighting, textiles, bathware, décor, outdoor and garden products, and specialty lines for children and teens.
- Generates revenue primarily through direct-to-consumer sales via retail galleries, catalogs (Source Books), and multiple branded e-commerce platforms.
- Targets affluent residential customers seeking premium home furnishings and design-driven products in the United States, Canada, and the United Kingdom.
RH is a leading specialty retailer in the home furnishings sector, operating a multi-channel platform that combines luxury retail galleries, curated catalogs, and digital commerce. The company leverages a differentiated product assortment and immersive showroom experiences to drive customer engagement and brand loyalty.
What this transaction means for investors
Kettle Hill took a relatively aggressive position when it bought RH. The fund did not hold a position in the upscale home furnishing retailer in Q3, making it notable that it is now the fund’s third-largest position.
However, the company, formerly known as Restoration Hardware, experienced a sharp decline in its stock price after the 2021 bear market ended. Also, rather than bottoming in 2022, it traded in a range until it took another sharp turn downward in early 2025 before resuming its range-bound trading.
Fortunately for Kettle Hill, conditions are such that this stock may have become a buying opportunity. In the first nine months of fiscal 2025 (ended Nov. 1), its revenue rose by 10%. Moreover, the net income of $96 million increased by 64% yearly as it kept its cost and expense growth in check.
Additionally, while its P/E ratio of 37 might still seem high, its forward P/E of 20 increases the likelihood that the declines will stop soon, possibly pointing to a long-awaited recovery in this retail stock.
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Will Healy has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Unity Software. The Motley Fool recommends Elastic and RH. The Motley Fool has a disclosure policy.
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