Arhaus (NASDAQ:ARHS) Stock Price Up 6.1% - Should You Buy?

Key Points

• Arhaus shares rose 6.1% to about $10.11, outperforming their previous close amid trading volume below the stock’s average.
• Analyst sentiment remains mixed: four analysts rate Arhaus a Buy and seven rate it Hold, producing a consensus Hold rating and an average price target of $10.12.
• The company exceeded quarterly expectations, reporting $0.28 in EPS versus $0.16 expected and $384.9 million in revenue, up 7.5% year over year. Institutional investors own approximately 27.9% of the stock.

Arhaus, Inc. (NASDAQ:ARHS - Get Free Report) was up 6.1% during mid-day trading on Tuesday . The stock traded as high as $10.06 and last traded at $10.11. 790,459 shares traded hands during trading, a decline of 41% from the average daily volume of 1,348,002 shares. The stock had previously closed at $9.53.

Analyst Upgrades and Downgrades

Several brokerages have commented on ARHS. Guggenheim lowered their price objective on shares of Arhaus from $14.00 to $12.00 and set a "buy" rating for the company in a research report on Friday, May 8th. Craig Hallum raised Arhaus from a "hold" rating to a "buy" rating and set a $12.00 target price on the stock in a report on Thursday, August 6th. Robert W. Baird set a $10.00 price target on Arhaus in a research note on Friday, August 7th. Piper Sandler boosted their price target on Arhaus from $8.00 to $9.00 and gave the stock a "neutral" rating in a report on Friday, August 7th. Finally, Morgan Stanley upped their price objective on Arhaus from $9.00 to $10.00 and gave the stock an "equal weight" rating in a research report on Friday, August 7th. Four research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company. According to MarketBeat, the stock presently has a consensus rating of "Hold" and an average price target of $10.12.

Arhaus Stock Performance

The firm has a market capitalization of $1.44 billion, a price-to-earnings ratio of 20.23, a PEG ratio of 3.10 and a beta of 2.29. The company has a current ratio of 1.33, a quick ratio of 0.60 and a debt-to-equity ratio of 0.13. The stock's 50-day moving average is $8.02 and its 200-day moving average is $7.73.

Arhaus (NASDAQ:ARHS - Get Free Report) last issued its earnings results on Thursday, August 6th. The company reported $0.28 earnings per share for the quarter, beating analysts' consensus estimates of $0.16 by $0.12. The firm had revenue of $384.90 million for the quarter, compared to analyst estimates of $365.66 million. Arhaus had a net margin of 4.91% and a return on equity of 17.23%. The company's quarterly revenue was up 7.5% on a year-over-year basis. During the same quarter last year, the business posted $0.25 earnings per share. On average, analysts predict that Arhaus, Inc. will post 0.54 EPS for the current fiscal year.

Institutional Investors Weigh In On Arhaus

Hedge funds and other institutional investors have recently bought and sold shares of the company. Balyasny Asset Management L.P. bought a new position in Arhaus in the fourth quarter valued at about $10,962,000. Wasatch Advisors LP increased its stake in shares of Arhaus by 6.8% in the second quarter. Wasatch Advisors LP now owns 12,703,259 shares of the company's stock valued at $110,137,000 after buying an additional 811,337 shares during the period. Nuveen LLC increased its stake in shares of Arhaus by 616.6% in the fourth quarter. Nuveen LLC now owns 751,950 shares of the company's stock valued at $8,429,000 after buying an additional 647,020 shares during the period. Simcoe Capital LLC bought a new position in Arhaus in the 4th quarter valued at approximately $4,592,000. Finally, EFG International AG bought a new position in Arhaus in the 4th quarter valued at approximately $4,334,000. 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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