Arhaus (NASDAQ:ARHS) Shares Down 7.1% Following Analyst Downgrade

Key Points

• Shares fell about 7.1% intraday after Telsey Advisory Group cut its price target from $11 to $9 and kept a market perform rating; the stock traded as low as $7.06 on volume below its average.
• Arhaus beat recent quarterly estimates with $0.11 EPS vs. $0.10 expected and $364.85M revenue (up 5.1% YoY), but analysts remain mixed (three Buys, nine Holds) and the MarketBeat consensus is a Hold with an average target of $10.25.
• The company paid a special dividend of $0.35 per share (ex-dividend Mar 18, paid Mar 31), has a market cap near $991M and roughly 27.9% institutional ownership, with a P/E around 14.7.

Arhaus, Inc. (NASDAQ:ARHS - Get Free Report) dropped 7.1% during mid-day trading on Monday after Telsey Advisory Group lowered their price target on the stock from $11.00 to $9.00. Telsey Advisory Group currently has a market perform rating on the stock. Arhaus traded as low as $7.06 and last traded at $7.0420. Approximately 750,939 shares changed hands during trading, a decline of 41% from the average daily volume of 1,266,838 shares. The stock had previously closed at $7.58.

Several other analysts also recently weighed in on ARHS. Morgan Stanley lifted their target price on shares of Arhaus from $10.50 to $12.00 and gave the company an "equal weight" rating in a report on Thursday, January 15th. Jefferies Financial Group cut their price objective on Arhaus from $9.50 to $7.25 and set a "hold" rating for the company in a research report on Tuesday, April 7th. TD Cowen dropped their price objective on Arhaus from $12.00 to $9.00 and set a "buy" rating for the company in a research report on Monday, March 30th. Finally, Stifel Nicolaus set a $12.00 target price on Arhaus in a research report on Monday, March 2nd. Three analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company's stock. According to MarketBeat, the company has a consensus rating of "Hold" and an average target price of $10.25.

Hedge Funds Weigh In On Arhaus

Hedge funds have recently modified their holdings of the stock. Fifth Third Bancorp acquired a new position in shares of Arhaus during the 1st quarter worth $40,000. Hsbc Holdings PLC increased its stake in shares of Arhaus by 67.9% in the first quarter. Hsbc Holdings PLC now owns 82,190 shares of the company's stock worth $548,000 after purchasing an additional 33,231 shares during the period. Granite Investment Partners LLC increased its stake in shares of Arhaus by 14.0% in the first quarter. Granite Investment Partners LLC now owns 460,322 shares of the company's stock worth $3,121,000 after purchasing an additional 56,628 shares during the period. Abel Hall LLC acquired a new stake in shares of Arhaus in the first quarter worth $68,000. Finally, MQS Management LLC acquired a new stake in Arhaus during the 1st quarter valued at $107,000. 27.88% of the stock is owned by institutional investors and hedge funds.

Arhaus Stock Down 7.3%

The firm has a 50-day moving average price of $7.34 and a two-hundred day moving average price of $9.33. The company has a debt-to-equity ratio of 0.13, a current ratio of 1.37 and a quick ratio of 0.62. The company has a market capitalization of $991.38 million, a price-to-earnings ratio of 14.66, a PEG ratio of 1.57 and a beta of 2.40.

Arhaus (NASDAQ:ARHS - Get Free Report) last announced its quarterly earnings data on Thursday, February 26th. The company reported $0.11 EPS for the quarter, topping analysts' consensus estimates of $0.10 by $0.01. Arhaus had a net margin of 4.88% and a return on equity of 17.32%. The business had revenue of $364.85 million for the quarter, compared to analyst estimates of $351.53 million. During the same quarter in the previous year, the firm posted $0.15 earnings per share. The firm's revenue for the quarter was up 5.1% on a year-over-year basis. As a group, sell-side analysts anticipate that Arhaus, Inc. will post 0.51 earnings per share for the current fiscal year.

Arhaus Dividend Announcement

The business also recently disclosed a special dividend, which was paid on Tuesday, March 31st. Stockholders of record on Wednesday, March 18th were given a dividend of $0.35 per share. The ex-dividend date of this dividend was Wednesday, March 18th.

About Arhaus

Arhaus NASDAQ: ARHS is a U.S.-based retailer specializing in high-end home furnishings and décor. Since its founding in 1986 in northeastern Ohio, the company has built a reputation for curating unique, design-forward products that blend contemporary aesthetics with artisanal craftsmanship. Headquartered in Boston Heights, Ohio, Arhaus operates a network of brick-and-mortar galleries across the United States alongside a robust e-commerce platform, serving customers from coastal metropolitan areas to interior regions.

The company’s product portfolio encompasses a wide range of furniture categories—including sofas, dining tables, bedroom pieces and storage solutions—complemented by lighting fixtures, rugs, pillows, wall art and decorative accessories.

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