Lovesac (NASDAQ:LOVE) Raised to Buy at Wall Street Zen

Key Points

• Wall Street Zen upgraded Lovesac from “hold” to “buy,” bringing the analyst consensus to “Moderate Buy” with an average price target of $21.33.
• Lovesac reported quarterly EPS of $0.51, beating the consensus estimate of a $0.36 loss, while revenue of $161.25 million was roughly in line with expectations and rose 0.5% year over year.
• Institutional ownership is high at 91.32%, with major investors including BlackRock, Senvest Management, and AWM Investment Company holding or adding significant positions.

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

Other equities analysts also recently issued reports about the stock. Weiss Ratings raised shares of Lovesac from a "hold (c-)" rating to a "hold (c)" rating in a report on Friday, October 23rd. DA Davidson reduced their price target on shares of Lovesac from $20.00 to $18.00 and set a "buy" rating for the company in a research report on Friday, September 11th. Canaccord Genuity Group decreased their price target on shares of Lovesac from $22.00 to $20.00 and set a "buy" rating on the stock in a research note on Thursday, September 10th. Finally, Roth Capital reiterated a "buy" rating on shares of Lovesac in a report on Friday, September 11th. Three research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company's stock. According to data from MarketBeat, Lovesac has an average rating of "Moderate Buy" and an average price target of $21.33.

Lovesac Price Performance

Shares of LOVE stock opened at $16.33 on Friday. The company has a market cap of $235.48 million, a price-to-earnings ratio of 13.39, a PEG ratio of 0.44 and a beta of 2.17. The stock has a 50 day simple moving average of $15.10 and a 200-day simple moving average of $15.13. Lovesac has a 1-year low of $10.33 and a 1-year high of $19.25.

Lovesac (NASDAQ:LOVE - Get Free Report) last released its quarterly earnings results on Thursday, September 10th. The company reported $0.51 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.36) by $0.87. The firm had revenue of $161.25 million for the quarter, compared to analysts' expectations of $161.55 million. Lovesac had a net margin of 2.56% and a return on equity of 2.57%. The firm's revenue for the quarter was up .5% compared to the same quarter last year. During the same quarter last year, the company earned ($0.45) EPS. Lovesac has set its Q3 2027 guidance at 0.620-0.830 EPS and its FY 2027 guidance at 0.980-1.260 EPS. Analysts anticipate that Lovesac will post 1.08 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in LOVE. BlackRock Inc. purchased a new position in shares of Lovesac in the second quarter worth about $20,250,000. Senvest Management LLC boosted its position in Lovesac by 36.7% during the first quarter. Senvest Management LLC now owns 1,025,393 shares of the company's stock worth $15,145,000 after acquiring an additional 275,252 shares during the last quarter. AWM Investment Company Inc. acquired a new position in Lovesac during the second quarter worth about $10,188,000. Kanen Wealth Management LLC purchased a new stake in Lovesac during the 1st quarter valued at about $8,064,000. Finally, Bastion Asset Management Inc. grew its stake in Lovesac by 193.6% during the 1st quarter. Bastion Asset Management Inc. now owns 356,097 shares of the company's stock valued at $5,290,000 after acquiring an additional 234,812 shares in the last quarter. Hedge funds and other institutional investors own 91.32% of the company's stock.

Lovesac Company Profile

The Lovesac Company designs, manufactures and sells furniture and home accessories focused on modularity, durability and reconfigurability. Its primary products include Sactionals, modular seating systems that can be arranged in multiple configurations, and Sacs, oversized beanbag-style seats made with specialized foam filling. The company also offers complementary products such as pillows, blankets, tables, covers and other accessories.

Lovesac sells its products through an omnichannel model that includes company-operated showrooms, its e-commerce website and select third-party retail partners.

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