Lovesac (NASDAQ:LOVE) Downgraded by Wall Street Zen to "Hold"

Key Points

• Wall Street Zen downgraded Lovesac from “Buy” to “Hold.” Despite the downgrade, the broader analyst consensus remains “Moderate Buy,” with three Buy ratings and one Hold rating and an average price target of $21.33.
• Lovesac shares opened at $13.50, down 5.9%, with a market capitalization of approximately $194.7 million. The stock has traded between $10.33 and $19.25 over the past year.
• The company reported quarterly earnings of $0.51 per share, beating the consensus estimate of a $0.36 loss, while revenue reached $161.25 million and increased 0.5% year over year. Institutional investors own 91.32% of Lovesac’s outstanding shares.

Lovesac (NASDAQ:LOVE - Get Free Report) was downgraded by research analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a research report issued on Sunday, Wall Street Zen reports.

LOVE has been the topic of several other research reports. Weiss Ratings upgraded Lovesac from a "sell (d)" rating to a "hold (c)" rating in a research note on Thursday, September 10th. DA Davidson decreased their price target on shares of Lovesac from $20.00 to $18.00 and set a "buy" rating for the company in a research note on Friday, September 11th. Roth Capital reiterated a "buy" rating on shares of Lovesac in a report on Friday, September 11th. Finally, Canaccord Genuity Group cut their price objective on shares of Lovesac from $22.00 to $20.00 and set a "buy" rating on the stock in a research report on Thursday, September 10th. Three research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company's stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average price target of $21.33.

Lovesac Stock Down 5.9%

Shares of NASDAQ:LOVE opened at $13.50 on Friday. Lovesac has a 12-month low of $10.33 and a 12-month high of $19.25. The firm has a fifty day moving average of $16.50 and a two-hundred day moving average of $15.51. The firm has a market capitalization of $194.67 million, a P/E ratio of 11.07, a price-to-earnings-growth ratio of 0.37 and a beta of 2.03.

Lovesac (NASDAQ:LOVE - Get Free Report) last released its quarterly earnings data on Thursday, September 10th. The company reported $0.51 earnings per share for the quarter, topping the consensus estimate of ($0.36) by $0.87. Lovesac had a net margin of 2.56% and a return on equity of 2.57%. The business had revenue of $161.25 million for the quarter, compared to analyst estimates of $161.55 million. During the same quarter last year, the firm earned ($0.45) EPS. Lovesac's quarterly revenue was up .5% compared to the same quarter last year. Lovesac has set its Q3 2027 guidance at 0.620-0.830 EPS and its FY 2027 guidance at 0.980-1.260 EPS. Equities research analysts expect that Lovesac will post 1.04 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Lovesac

A number of large investors have recently made changes to their positions in the company. BlackRock Inc. acquired a new stake in Lovesac during the 2nd quarter worth approximately $20,250,000. Senvest Management LLC grew its holdings in Lovesac by 36.7% in the 1st quarter. Senvest Management LLC now owns 1,025,393 shares of the company's stock valued at $15,145,000 after buying an additional 275,252 shares in the last quarter. AWM Investment Company Inc. bought a new position in Lovesac during the 2nd quarter worth $10,188,000. Kanen Wealth Management LLC bought a new position in Lovesac during the 1st quarter worth $8,064,000. Finally, Bastion Asset Management Inc. lifted its holdings in shares of Lovesac by 193.6% during the first quarter. Bastion Asset Management Inc. now owns 356,097 shares of the company's stock worth $5,290,000 after buying an additional 234,812 shares in the last quarter. Institutional investors own 91.32% of the company's stock.

About Lovesac

Lovesac Company is a U.S.-based home-furnishings retailer that designs, manufactures, markets and sells modular furniture and related products. Its primary offerings include Sactionals, a configurable seating system made from interchangeable seats and sides, and Sac beanbags, along with complementary products such as ottomans, pillows, blankets, tables and other home accessories.

The company sells its products through an omnichannel model that includes company-operated showrooms, its e-commerce website and other direct-to-consumer channels.

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