Arhaus (NASDAQ:ARHS) Shares Gap Up After Strong Earnings

Key Points

• Arhaus, Inc. shares experienced a significant increase, opening at $12.40 following a stronger-than-expected earnings report, with an EPS of $0.25 surpassing the consensus estimate of $0.15.
• Brokerage firms have shown mixed sentiments, with Guggenheim assigning a "buy" rating but lowering their price target from $14.00 to $12.00.
• Hedge funds increased their stakes in Arhaus, with GAMMA Investing LLC boosting its position by 185.1% in the last quarter.

Arhaus, Inc. (NASDAQ:ARHS - Get Free Report) shares gapped up prior to trading on Thursday following a stronger than expected earnings report. The stock had previously closed at $9.87, but opened at $12.40. Arhaus shares last traded at $11.92, with a volume of 1,345,082 shares changing hands.

The company reported $0.25 EPS for the quarter, beating the consensus estimate of $0.15 by $0.10. The company had revenue of $358.44 million for the quarter, compared to analyst estimates of $333.39 million. Arhaus had a net margin of 5.33% and a return on equity of 20.08%. Arhaus's revenue was up 15.6% compared to the same quarter last year. During the same quarter last year, the business earned $0.16 earnings per share.

Analyst Ratings Changes

A number of brokerages have recently issued reports on ARHS. Morgan Stanley upped their target price on shares of Arhaus from $10.00 to $12.50 and gave the stock an "equal weight" rating in a research report on Friday. Guggenheim dropped their price target on shares of Arhaus from $14.00 to $12.00 and set a "buy" rating for the company in a research note on Friday, May 9th. Telsey Advisory Group reissued a "market perform" rating and set a $10.00 price target on shares of Arhaus in a research note on Monday, August 4th. Piper Sandler reaffirmed a "neutral" rating and issued a $11.00 target price (up previously from $9.00) on shares of Arhaus in a research note on Friday. Finally, Cowen reaffirmed a "buy" rating on shares of Arhaus in a research note on Friday. Twelve investment analysts have rated the stock with a hold rating and four have given a buy rating to the stock. According to data from MarketBeat, Arhaus has an average rating of "Hold" and a consensus target price of $10.50.

Institutional Trading of Arhaus

Large investors have recently added to or reduced their stakes in the stock. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its stake in Arhaus by 3.5% in the 4th quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 29,152 shares of the company's stock worth $274,000 after purchasing an additional 984 shares in the last quarter. Legal & General Group Plc increased its position in shares of Arhaus by 4.3% during the 4th quarter. Legal & General Group Plc now owns 37,440 shares of the company's stock valued at $352,000 after purchasing an additional 1,531 shares during the last quarter. GAMMA Investing LLC raised its stake in 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 acquiring an additional 2,045 shares during the period. Rhumbline Advisers raised its stake in Arhaus by 3.2% during the 1st quarter. Rhumbline Advisers now owns 73,761 shares of the company's stock worth $642,000 after acquiring an additional 2,255 shares during the period. Finally, Arizona State Retirement System raised its position in shares of Arhaus by 24.9% during the first quarter. Arizona State Retirement System now owns 14,525 shares of the company's stock valued at $126,000 after buying an additional 2,899 shares during the last quarter. Institutional investors own 27.88% of the company's stock.

Arhaus Stock Performance

The stock has a market cap of $1.58 billion, a P/E ratio of 22.53, a PEG ratio of 6.76 and a beta of 2.56. 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 firm's 50-day moving average price is $9.04 and its 200-day moving average price is $9.31.

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.