Arhaus (NASDAQ:ARHS) Stock Price Target Raised at TD Cowen

Key Points

• TD Cowen raised its Arhaus price target from $11 to $16 and maintained a Buy rating, implying 9.33% upside from the prior close.
• Analyst sentiment is broadly positive: MarketBeat reports an overall “Moderate Buy” consensus and an average price target of $12, with one Strong Buy, six Buy, and three Hold ratings.
• Arhaus’ latest quarter came in below expectations, with EPS of $0.05 versus $0.08 forecast and revenue of $368.12 million versus $370.56 million; revenue nevertheless grew 6.8% year over year.

Arhaus (NASDAQ:ARHS - Get Free Report) had its price target increased by investment analysts at TD Cowen from $11.00 to $16.00 in a report released on Monday, Benzinga reports. The firm presently has a "buy" rating on the stock. TD Cowen's target price points to a potential upside of 9.33% from the company's previous close.

ARHS has been the topic of a number of other reports. Telsey Advisory Group boosted their target price on Arhaus from $12.00 to $14.00 and gave the stock a "market perform" rating in a research report on Friday. Craig Hallum upgraded Arhaus from a "hold" rating to a "buy" rating and set a $12.00 price target for the company in a research report on Thursday, August 6th. Wall Street Zen upgraded Arhaus from a "sell" rating to a "hold" rating in a research report on Monday, July 20th. Robert W. Baird set a $10.00 price target on Arhaus in a research note on Friday, August 7th. Finally, Piper Sandler upgraded Arhaus from a "neutral" rating to an "overweight" rating and boosted their price objective for the stock from $9.00 to $13.00 in a report on Tuesday, October 20th. One investment analyst has rated the stock with a Strong Buy rating, six have given a Buy rating and three have given a Hold rating to the company's stock. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $12.00.

Arhaus Price Performance

Shares of NASDAQ ARHS traded up $0.44 during midday trading on Monday, reaching $14.63. The company's stock had a trading volume of 552,141 shares, compared to its average volume of 1,427,036. The company has a current ratio of 1.30, a quick ratio of 0.64 and a debt-to-equity ratio of 0.12. The company has a 50 day moving average price of $9.90 and a 200 day moving average price of $8.41. Arhaus has a one year low of $5.57 and a one year high of $14.85. The company has a market cap of $2.07 billion, a price-to-earnings ratio of 31.78, a price-to-earnings-growth ratio of 4.06 and a beta of 2.24.

Arhaus (NASDAQ:ARHS - Get Free Report) last issued its earnings results on Thursday, November 5th. The company reported $0.05 earnings per share for the quarter, missing analysts' consensus estimates of $0.08 by ($0.03). The business had revenue of $368.12 million for the quarter, compared to the consensus estimate of $370.56 million. Arhaus had a return on equity of 15.89% and a net margin of 4.52%. The company's quarterly revenue was up 6.8% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.09 earnings per share. On average, equities research analysts expect that Arhaus will post 0.54 EPS for the current year.

Insiders Place Their Bets

In other news, major shareholder 2018 Reed Dynasty Trust sold 77,695 shares of the stock in a transaction on Wednesday, November 4th. The stock was sold at an average price of $13.03, for a total value of $1,012,365.85. Following the completion of the sale, the insider owned 64,927 shares in the company, valued at $845,998.81. This represents a 54.48% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO John P. Reed sold 89,510 shares of the firm's stock in a transaction on Wednesday, November 4th. The stock was sold at an average price of $13.03, for a total value of $1,166,315.30. Following the completion of the sale, the chief executive officer directly owned 115,799 shares of the company's stock, valued at approximately $1,508,860.97. This trade represents a 43.60% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 278,896 shares of company stock worth $3,508,782. Corporate insiders own 1.18% of the company's stock.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of ARHS. Arrowstreet Capital Limited Partnership boosted its holdings in shares of Arhaus by 95.1% during the first quarter. Arrowstreet Capital Limited Partnership now owns 459,025 shares of the company's stock worth $3,112,000 after purchasing an additional 223,692 shares during the period. Bank of New York Mellon Corp acquired a new position in Arhaus in the 2nd quarter valued at approximately $1,582,000. Dimensional Fund Advisors LP increased its stake in Arhaus by 18.6% in the 1st quarter. Dimensional Fund Advisors LP now owns 1,179,268 shares of the company's stock valued at $7,994,000 after buying an additional 185,208 shares during the period. Principal Financial Group Inc. purchased a new stake in Arhaus in the 1st quarter worth approximately $742,000. Finally, Hardin Capital Partners LLC purchased a new stake in Arhaus in the 2nd quarter worth approximately $672,000. 27.88% of the stock is owned by institutional investors and hedge funds.

Arhaus Company Profile

Arhaus, Inc is a lifestyle-focused retailer of luxury and artisan-inspired furniture and home furnishings. The company offers products for living rooms, bedrooms, dining areas, offices and outdoor spaces, along with lighting, rugs, textiles, wall art, mirrors, décor and other home accessories.

Arhaus combines retail showrooms with e-commerce and interior design services, providing products intended to support a coordinated approach to home furnishing. Its collections are developed through collaborations with designers and craftspeople and may incorporate materials such as reclaimed wood, natural stone, upholstery fabrics and other distinctive finishes.

Founded in 1986, Arhaus serves customers primarily in the United States through its stores, online platform and interior design professionals.

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