Guggenheim Forecasts Strong Price Appreciation for Arhaus (NASDAQ:ARHS) Stock

Key Points

• Guggenheim raised its Arhaus price target from $12 to $17 and reiterated a Buy rating, implying 13.18% upside from the stock’s current price.
• Analyst sentiment is broadly positive: MarketBeat’s consensus is “Moderate Buy,” with an average price target of $12.56; six analysts rate the stock Buy and four rate it Hold.
• Arhaus reported quarterly EPS of $0.05, below the $0.08 consensus, and revenue of $368.12 million, also short of estimates, though revenue grew 6.8% year over year.

Arhaus (NASDAQ:ARHS - Get Free Report) had its price objective upped by Guggenheim from $12.00 to $17.00 in a note issued to investors on Tuesday, Benzinga reports. The brokerage presently has a "buy" rating on the stock. Guggenheim's price target suggests a potential upside of 13.18% from the stock's current price.

A number of other research analysts have also recently issued reports on ARHS. Telsey Advisory Group lifted their price objective on shares of Arhaus from $12.00 to $14.00 and gave the company a "market perform" rating in a research note on Friday. Wall Street Zen upgraded Arhaus from a "sell" rating to a "hold" rating in a research note on Monday, July 20th. Robert W. Baird set a $10.00 target price on Arhaus in a report on Friday, August 7th. Piper Sandler upgraded Arhaus from a "neutral" rating to an "overweight" rating and lifted their price target for the company from $9.00 to $13.00 in a research note on Tuesday, October 20th. Finally, Zacks Research lowered Arhaus from a "strong-buy" rating to a "hold" rating in a research note on Friday. Six equities research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company's stock. According to MarketBeat.com, Arhaus has an average rating of "Moderate Buy" and an average target price of $12.56.

Arhaus Stock Up 5.8%

Shares of NASDAQ ARHS opened at $15.02 on Tuesday. The company has a debt-to-equity ratio of 0.13, a quick ratio of 0.60 and a current ratio of 1.33. Arhaus has a 52 week low of $5.57 and a 52 week high of $15.17. The stock has a market capitalization of $2.13 billion, a P/E ratio of 32.65, a PEG ratio of 3.73 and a beta of 2.24. The stock's fifty day moving average is $10.02 and its 200 day moving average is $8.43.

Arhaus (NASDAQ:ARHS - Get Free Report) last posted its quarterly earnings data on Thursday, November 5th. The company reported $0.05 earnings per share for the quarter, missing the consensus estimate of $0.08 by ($0.03). Arhaus had a return on equity of 17.23% and a net margin of 4.91%. The firm had revenue of $368.12 million for the quarter, compared to the consensus estimate of $370.56 million. During the same period in the prior year, the company earned $0.09 EPS. The company's revenue for the quarter was up 6.8% compared to the same quarter last year. Sell-side analysts forecast that Arhaus will post 0.54 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Arhaus news, CEO John P. Reed sold 89,510 shares of the firm's stock in a transaction that occurred on Wednesday, November 4th. The shares were sold at an average price of $13.03, for a total value of $1,166,315.30. Following the sale, the chief executive officer owned 115,799 shares in the company, valued at $1,508,860.97. This trade represents a 43.60% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Alton F. Doody III sold 3,500 shares of the firm's stock in a transaction that occurred on Tuesday, September 8th. The shares were sold at an average price of $8.47, for a total transaction of $29,645.00. Following the completion of the sale, the director owned 87,113 shares in the company, valued at $737,847.11. This represents a 3.86% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 278,896 shares of company stock worth $3,508,782 in the last three months. 1.18% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the company. Russell Investments Group Ltd. raised its position in Arhaus by 42.1% in the third quarter. Russell Investments Group Ltd. now owns 86,529 shares of the company's stock valued at $819,000 after purchasing an additional 25,625 shares during the last quarter. King Luther Capital Management Corp grew its holdings in shares of Arhaus by 0.3% during the third quarter. King Luther Capital Management Corp now owns 314,539 shares of the company's stock worth $2,979,000 after purchasing an additional 929 shares during the last quarter. GAMMA Investing LLC increased its stake in shares of Arhaus by 85.0% in the third quarter. GAMMA Investing LLC now owns 2,611 shares of the company's stock valued at $25,000 after buying an additional 1,200 shares during the period. Engineers Gate Manager LP grew its holdings in Arhaus by 54.4% during the 2nd quarter. Engineers Gate Manager LP now owns 213,976 shares of the company's stock worth $1,802,000 after acquiring an additional 75,371 shares during the last quarter. Finally, Squarepoint Ops LLC bought a new stake in Arhaus during the 2nd quarter worth approximately $96,000. 27.88% of the stock is currently owned by institutional investors.

About Arhaus

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