Short Interest in Arhaus, Inc. (NASDAQ:ARHS) Drops By 30.0%

Key Points

• Arhaus, Inc. experienced a significant decline in short interest, dropping 30% from July to August, with only 4,300,000 shares sold short by mid-August, representing 8.5% of outstanding shares.
• The company reported strong quarterly earnings, posting an EPS of $0.25, beating expectations, with a revenue increase of 15.6% year-over-year, totaling $358.44 million.
• Several research analysts have recently raised price targets for Arhaus, with Stifel Nicolaus increasing their target from $10.00 to $14.00 and currently, the stock holds an average price target of $10.83 with a "Hold" rating.

Arhaus, Inc. (NASDAQ:ARHS - Get Free Report) saw a significant decrease in short interest during the month of August. As of August 15th, there was short interest totaling 4,300,000 shares, a decrease of 30.0% from the July 31st total of 6,140,000 shares. Approximately 8.5% of the shares of the stock are short sold. Based on an average daily volume of 1,910,000 shares, the short-interest ratio is presently 2.3 days. Based on an average daily volume of 1,910,000 shares, the short-interest ratio is presently 2.3 days. Approximately 8.5% of the shares of the stock are short sold.

Arhaus Price Performance

NASDAQ ARHS traded up $0.15 on Thursday, reaching $11.24. 1,585,139 shares of the company's stock traded hands, compared to its average volume of 1,829,756. Arhaus has a 12 month low of $6.61 and a 12 month high of $13.97. The company has a debt-to-equity ratio of 0.14, a current ratio of 1.33 and a quick ratio of 0.61. The stock has a 50-day simple moving average of $10.50 and a 200 day simple moving average of $9.27. The stock has a market cap of $1.58 billion, a PE ratio of 22.48, a P/E/G ratio of 6.32 and a beta of 2.59.

Arhaus (NASDAQ:ARHS - Get Free Report) last issued its quarterly earnings results on Thursday, August 7th. The company reported $0.25 EPS for the quarter, beating analysts' consensus estimates of $0.15 by $0.10. Arhaus had a net margin of 5.33% and a return on equity of 20.08%. The business had revenue of $358.44 million for the quarter, compared to analysts' expectations of $333.39 million. During the same period last year, the business earned $0.16 earnings per share. The business's quarterly revenue was up 15.6% on a year-over-year basis. Arhaus has set its Q3 2025 guidance at EPS. FY 2025 guidance at EPS. As a group, research analysts predict that Arhaus will post 0.46 earnings per share for the current year.

Analysts Set New Price Targets

Several research analysts recently weighed in on ARHS shares. Morgan Stanley upped their price objective on shares of Arhaus from $10.00 to $12.50 and gave the stock an "equal weight" rating in a research report on Friday, August 8th. Piper Sandler restated a "neutral" rating and issued a $11.00 price objective (up from $9.00) on shares of Arhaus in a research report on Friday, August 8th. Zacks Research upgraded shares of Arhaus from a "strong sell" rating to a "hold" rating in a research report on Tuesday, September 2nd. Cowen restated a "buy" rating on shares of Arhaus in a research report on Friday, August 8th. Finally, Wall Street Zen upgraded shares of Arhaus from a "sell" rating to a "hold" rating in a research report on Saturday, July 12th. Four analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of "Hold" and an average target price of $10.83.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the company. GAMMA Investing LLC grew its holdings in shares of Arhaus by 185.1% in the second quarter. GAMMA Investing LLC now owns 3,150 shares of the company's stock worth $27,000 after purchasing an additional 2,045 shares during the last quarter. BNP Paribas Financial Markets bought a new position in shares of Arhaus in the fourth quarter worth approximately $58,000. Tower Research Capital LLC TRC grew its holdings in shares of Arhaus by 224.9% in the second quarter. Tower Research Capital LLC TRC now owns 7,391 shares of the company's stock worth $64,000 after purchasing an additional 5,116 shares during the last quarter. Cetera Investment Advisers bought a new position in shares of Arhaus in the fourth quarter worth approximately $99,000. Finally, Canada Pension Plan Investment Board grew its holdings in shares of Arhaus by 28.9% in the second quarter. Canada Pension Plan Investment Board now owns 12,500 shares of the company's stock worth $108,000 after purchasing an additional 2,800 shares during the last quarter. Institutional investors own 27.88% of the company's stock.

Arhaus Company Profile

Arhaus, Inc operates as a lifestyle brand and premium retailer in the home furnishings market in the United States. It provides merchandise assortments across various categories, including furniture, lighting, textiles, décor, and outdoor. The company's furniture products comprise bedroom, dining room, living room, and home office furnishings, which includes sofas, dining tables and chairs, accent chairs, console and coffee tables, beds, headboards, dressers, desks, bookcases, modular storage, and other items; and outdoor products, such as outdoor dining tables, chairs, chaises and other furniture, lighting, textiles, décor, umbrellas, and fire pits.