Arhaus (NASDAQ:ARHS) Stock Rating Raised to Strong-Buy at Zacks Research

Key Points

• Zacks Research upgraded Arhaus to “strong buy” from “hold.” Other analysts have also raised their ratings or price targets, giving the stock an overall “Moderate Buy” consensus and an average target price of $10.22.
• Arhaus reported quarterly EPS of $0.28, beating estimates of $0.16, while revenue reached $384.9 million—up 7.5% year over year and above expectations.
• ARHS opened at $9.84, compared with a 52-week range of $5.57 to $12.08. Institutional investors and hedge funds own 27.88% of the company, while an insider recently sold 3,500 shares.

Arhaus (NASDAQ:ARHS - Get Free Report) was upgraded by analysts at Zacks Research from a "hold" rating to a "strong-buy" rating in a research note issued on Tuesday, Zacks reports.

ARHS has been the topic of a number of other research reports. Telsey Advisory Group increased their price objective on Arhaus from $8.00 to $10.00 and gave the company a "market perform" rating in a research note on Friday, August 7th. Jefferies Financial Group raised shares of Arhaus from a "hold" rating to a "buy" rating and boosted their target price for the company from $9.50 to $10.00 in a research note on Monday, September 21st. Weiss Ratings upgraded shares of Arhaus from a "hold (c-)" rating to a "hold (c)" rating in a report on Monday, August 17th. Wall Street Zen raised shares of Arhaus from a "sell" rating to a "hold" rating in a research note on Monday, July 20th. Finally, Robert W. Baird set a $10.00 price target on shares of Arhaus in a report on Friday, August 7th. One investment analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and four have given a Hold rating to the company's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $10.22.

Arhaus Price Performance

ARHS stock opened at $9.84 on Tuesday. Arhaus has a 1 year low of $5.57 and a 1 year high of $12.08. The company has a debt-to-equity ratio of 0.13, a quick ratio of 0.60 and a current ratio of 1.33. The stock's 50 day moving average price is $8.95 and its 200 day moving average price is $7.76. The firm has a market cap of $1.39 billion, a P/E ratio of 19.68, a PEG ratio of 3.14 and a beta of 2.29.

Arhaus (NASDAQ:ARHS - Get Free Report) last announced its earnings results on Thursday, August 6th. The company reported $0.28 EPS for the quarter, beating analysts' consensus estimates of $0.16 by $0.12. Arhaus had a return on equity of 17.23% and a net margin of 4.91%.The firm had revenue of $384.90 million for the quarter, compared to analysts' expectations of $365.66 million. During the same quarter in the prior year, the firm earned $0.25 EPS. Arhaus's quarterly revenue was up 7.5% on a year-over-year basis. On average, sell-side analysts expect that Arhaus will post 0.54 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, Director Alton F. Doody III sold 3,500 shares of the company's stock in a transaction on Tuesday, September 8th. The stock was sold at an average price of $8.47, for a total value of $29,645.00. Following the completion of the transaction, the director directly owned 87,113 shares in the company, valued at approximately $737,847.11. This represents a 3.86% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Insiders own 1.18% of the company's stock.

Institutional Trading of Arhaus

Hedge funds have recently added to or reduced their stakes in the business. Engineers Gate Manager LP increased its stake in shares of Arhaus by 54.4% during the 2nd quarter. Engineers Gate Manager LP now owns 213,976 shares of the company's stock valued at $1,802,000 after acquiring an additional 75,371 shares during the last quarter. Squarepoint Ops LLC acquired a new stake in shares of Arhaus in the second quarter worth approximately $96,000. Ancora Advisors LLC acquired a new stake in shares of Arhaus in the second quarter worth approximately $34,000. Bank of New York Mellon Corp purchased a new stake in Arhaus in the second quarter valued at approximately $1,582,000. Finally, Hardin Capital Partners LLC purchased a new stake in Arhaus in the second quarter valued at approximately $672,000. 27.88% of the stock is owned by institutional investors and hedge funds.

About Arhaus

Arhaus, Inc is a lifestyle and home furnishings company that designs, sources, and sells premium furniture and décor. Its product range includes living room, dining room, bedroom, and outdoor furniture, along with lighting, rugs, textiles, wall art, accessories, and other home décor.

Founded in 1986 by John Reed, Arhaus operates through a network of retail showrooms and an e-commerce platform. The company emphasizes distinctive designs, artisan craftsmanship, and the use of materials such as reclaimed wood and recycled fabrics in selected products.

Arhaus primarily serves customers in the United States through its showrooms and online sales channels.

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