Zacks Research Upgrades Arhaus (NASDAQ:ARHS) to "Hold"

Key Points

• Arhaus has been upgraded by Zacks Research from a "strong sell" to a "hold" rating, indicating a shift in analyst sentiment towards the stock.
• Morgan Stanley increased its price target for Arhaus from $10.00 to $12.50, while Stifel Nicolaus raised it to $14.00 based on positive earnings performance and market conditions.
• The company reported $0.25 EPS for the last quarter, exceeding analysts' expectations, with revenue of $358.44 million, a 15.6% increase compared to the same quarter last year.

Arhaus (NASDAQ:ARHS - Get Free Report) was upgraded by research analysts at Zacks Research from a "strong sell" rating to a "hold" rating in a report issued on Tuesday,Zacks.com reports.

Several other brokerages have also issued reports on ARHS. Guggenheim decreased their price target on shares of Arhaus from $14.00 to $12.00 and set a "buy" rating on the stock in a report on Friday, May 9th. Telsey Advisory Group reiterated a "market perform" rating and issued a $10.00 price objective on shares of Arhaus in a report on Monday, August 4th. Morgan Stanley raised their price objective 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. Cowen reiterated a "buy" rating on shares of Arhaus in a report on Friday, August 8th. Finally, Wall Street Zen raised shares of Arhaus from a "sell" rating to a "hold" rating in a research report on Saturday, July 12th. Four analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the company. According to data from MarketBeat, the stock has an average rating of "Hold" and a consensus price target of $10.83.

Arhaus Stock Down 1.1%

ARHS traded down $0.13 during trading on Tuesday, reaching $11.39. The company had a trading volume of 1,547,584 shares, compared to its average volume of 1,971,386. 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 company has a market cap of $1.61 billion, a P/E ratio of 22.78, a PEG ratio of 6.56 and a beta of 2.59. The business's fifty day moving average price is $10.34 and its 200 day moving average price is $9.25. Arhaus has a 12 month low of $6.61 and a 12 month high of $13.97.

Arhaus (NASDAQ:ARHS - Get Free Report) last released its quarterly earnings data on Thursday, August 7th. The company reported $0.25 EPS for the quarter, topping analysts' consensus estimates of $0.15 by $0.10. Arhaus had a net margin of 5.33% and a return on equity of 20.08%. The firm had revenue of $358.44 million during the quarter, compared to analysts' expectations of $333.39 million. During the same period in the previous year, the business posted $0.16 earnings per share. The company's revenue for the quarter was up 15.6% compared to the same quarter last year. Arhaus has set its Q3 2025 guidance at EPS. FY 2025 guidance at EPS. Equities analysts anticipate that Arhaus will post 0.46 EPS for the current year.

Institutional Investors Weigh In On Arhaus

Institutional investors and hedge funds have recently modified their holdings of the company. Bank of America Corp DE boosted its stake in Arhaus by 1,532.9% in the fourth quarter. Bank of America Corp DE now owns 2,497,915 shares of the company's stock worth $23,480,000 after buying an additional 2,672,239 shares in the last quarter. CenterBook Partners LP lifted its position in Arhaus by 145.8% during the first quarter. CenterBook Partners LP now owns 1,891,457 shares of the company's stock valued at $16,456,000 after buying an additional 1,122,004 shares during the period. Jane Street Group LLC lifted its position in Arhaus by 808.3% during the fourth quarter. Jane Street Group LLC now owns 899,693 shares of the company's stock valued at $8,457,000 after buying an additional 1,026,710 shares during the period. Wasatch Advisors LP increased its holdings in shares of Arhaus by 6.8% during the second quarter. Wasatch Advisors LP now owns 12,703,259 shares of the company's stock valued at $110,137,000 after acquiring an additional 811,337 shares in the last quarter. Finally, Maverick Capital Ltd. bought a new position in shares of Arhaus during the second quarter valued at $4,691,000. 27.88% of the stock is owned by hedge funds and other institutional investors.

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.