Arhaus, Inc. (NASDAQ:ARHS) Sees Large Drop in Short Interest

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) was the recipient of a significant decrease in short interest in 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 sold short. 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 sold short.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the business. GAMMA Investing LLC grew its position in shares of Arhaus by 185.1% during the 2nd quarter. GAMMA Investing LLC now owns 3,150 shares of the company's stock worth $27,000 after buying an additional 2,045 shares during the period. BNP Paribas Financial Markets bought a new position in Arhaus in the fourth quarter valued at approximately $58,000. Tower Research Capital LLC TRC grew its holdings in Arhaus by 224.9% during the 2nd quarter. Tower Research Capital LLC TRC now owns 7,391 shares of the company's stock worth $64,000 after acquiring an additional 5,116 shares during the period. Cetera Investment Advisers acquired a new position in shares of Arhaus in the 4th quarter valued at $99,000. Finally, Canada Pension Plan Investment Board grew its stake in shares of Arhaus by 28.9% during 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 period. 27.88% of the stock is currently owned by institutional investors and hedge funds.

Arhaus Price Performance

ARHS traded down $0.15 during trading on Wednesday, hitting $11.03. The company's stock had a trading volume of 632,381 shares, compared to its average volume of 1,958,997. The company has a quick ratio of 0.61, a current ratio of 1.33 and a debt-to-equity ratio of 0.14. The stock has a market capitalization of $1.55 billion, a price-to-earnings ratio of 22.08, a price-to-earnings-growth ratio of 6.49 and a beta of 2.59. The firm's 50 day moving average price is $10.43 and its two-hundred day moving average price is $9.26. Arhaus has a 12 month low of $6.61 and a 12 month high of $13.97.

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

Wall Street Analyst Weigh In

A number of brokerages have recently weighed in on ARHS. Piper Sandler reiterated a "neutral" rating and set a $11.00 price target (up previously from $9.00) on shares of Arhaus in a report on Friday, August 8th. Telsey Advisory Group reiterated a "market perform" rating and set a $10.00 price target on shares of Arhaus in a report on Monday, August 4th. Morgan Stanley boosted their price target on shares of Arhaus from $10.00 to $12.50 and gave the company an "equal weight" rating in a report on Friday, August 8th. Stifel Nicolaus lifted their price objective on shares of Arhaus from $10.00 to $14.00 and gave the company a "buy" rating in a research note on Friday, August 15th. Finally, Raymond James Financial started coverage on shares of Arhaus in a report on Monday, June 9th. They issued a "market perform" rating for the company. Four analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the company. According to MarketBeat.com, Arhaus presently has an average rating of "Hold" and a consensus target price of $10.83.

About Arhaus

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.