Arhaus (NASDAQ:ARHS) Shares Gap Down - Should You Sell?

Key Points

• Shares gapped down — Arhaus opened at $6.80 after closing at $7.59 and last traded around $7.12 on a volume of 448,039 shares.
• Analysts' consensus is a Hold with an average target of $10.25, though several firms have recently trimmed price targets (e.g., TD Cowen, Telsey, Jefferies) while a few maintain buy/equal-weight views.
• Latest quarter met EPS estimates at $0.02 with revenue of $314.28M (up 0.9% YoY), and the company paid a special $0.35 dividend on March 31.

Arhaus, Inc. (NASDAQ:ARHS - Get Free Report) gapped down before the market opened on Thursday . The stock had previously closed at $7.59, but opened at $6.80. Arhaus shares last traded at $7.1170, with a volume of 448,039 shares traded.

Wall Street Analysts Forecast Growth

ARHS has been the subject of several recent analyst reports. TD Cowen lowered their price target on Arhaus from $12.00 to $9.00 and set a "buy" rating for the company in a report on Monday, March 30th. Morgan Stanley raised their target price on shares of Arhaus from $10.50 to $12.00 and gave the stock an "equal weight" rating in a research report on Thursday, January 15th. Stifel Nicolaus set a $12.00 target price on shares of Arhaus in a report on Monday, March 2nd. Telsey Advisory Group dropped their price target on shares of Arhaus from $11.00 to $9.00 and set a "market perform" rating for the company in a research report on Monday. Finally, Jefferies Financial Group decreased their price target on shares of Arhaus from $9.50 to $7.25 and set a "hold" rating on the stock in a report on Tuesday, April 7th. Three analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the company has an average rating of "Hold" and an average target price of $10.25.

Arhaus Price Performance

The company has a market capitalization of $998.58 million, a price-to-earnings ratio of 14.74, a price-to-earnings-growth ratio of 1.51 and a beta of 2.40. The company has a quick ratio of 0.62, a current ratio of 1.37 and a debt-to-equity ratio of 0.13. The company has a 50 day simple moving average of $7.28 and a 200 day simple moving average of $9.28.

Arhaus (NASDAQ:ARHS - Get Free Report) last announced its quarterly earnings results on Thursday, May 7th. The company reported $0.02 EPS for the quarter, hitting the consensus estimate of $0.02. The company had revenue of $314.28 million during the quarter, compared to analyst estimates of $313.97 million. Arhaus had a return on equity of 17.32% and a net margin of 4.88%.The firm's revenue was up .9% on a year-over-year basis. During the same period in the prior year, the firm posted $0.03 earnings per share. As a group, research analysts predict that Arhaus, Inc. will post 0.5 EPS for the current year.

Arhaus Dividend Announcement

The business also recently declared a special dividend, which was paid on Tuesday, March 31st. Shareholders of record on Wednesday, March 18th were issued a $0.35 dividend. The ex-dividend date was Wednesday, March 18th.

Hedge Funds Weigh In On Arhaus

A number of institutional investors and hedge funds have recently bought and sold shares of ARHS. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its holdings in Arhaus by 4.5% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 30,478 shares of the company's stock worth $265,000 after acquiring an additional 1,326 shares during the period. Millennium Management LLC boosted its holdings in Arhaus by 83.8% in the 1st quarter. Millennium Management LLC now owns 696,690 shares of the company's stock worth $6,061,000 after acquiring an additional 317,631 shares during the period. Goldman Sachs Group Inc. lifted its stake in shares of Arhaus by 24.1% in the first quarter. Goldman Sachs Group Inc. now owns 620,508 shares of the company's stock worth $5,398,000 after acquiring an additional 120,314 shares in the last quarter. Hsbc Holdings PLC boosted its holdings in Arhaus by 73.3% in the second quarter. Hsbc Holdings PLC now owns 35,299 shares of the company's stock valued at $308,000 after purchasing an additional 14,927 shares during the last quarter. Finally, Quantbot Technologies LP purchased a new position in Arhaus in the second quarter valued at about $424,000. Hedge funds and other institutional investors own 27.88% of the company's stock.

Arhaus Company Profile

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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