The Lovesac Company (NASDAQ:LOVE) Receives Average Recommendation of "Moderate Buy" from Brokerages

Key Points

• Analyst sentiment is moderately bullish: Four of five covering firms rate Lovesac a buy, while one recommends selling. The average 12-month price target is $22.67 versus the stock’s $16.69 opening price.
• Insider and institutional ownership remains strong: Director Andrew Heyer bought 30,000 shares worth $440,400, while institutional investors own 91.32% of the company.
• Quarterly results exceeded expectations: Lovesac reported a loss of $0.76 per share, better than the $1.03 consensus estimate, and generated $138.2 million in revenue versus expectations of $136.66 million.

The Lovesac Company (NASDAQ:LOVE - Get Free Report) has earned an average rating of "Moderate Buy" from the five ratings firms that are currently covering the firm, Marketbeat.com reports. One research analyst has rated the stock with a sell recommendation and four have assigned a buy recommendation to the company. The average 12-month price target among analysts that have issued ratings on the stock in the last year is $22.6667.

Several research firms have weighed in on LOVE. Canaccord Genuity Group set a $22.00 price target on Lovesac in a research note on Thursday, June 11th. Weiss Ratings reissued a "sell (d)" rating on shares of Lovesac in a report on Wednesday, June 24th. Finally, DA Davidson upped their target price on shares of Lovesac from $18.00 to $20.00 and gave the stock a "buy" rating in a research report on Friday, June 12th.

Insider Activity at Lovesac

In other news, Director Andrew Heyer acquired 30,000 shares of the business's stock in a transaction dated Thursday, June 18th. The stock was purchased at an average price of $14.68 per share, for a total transaction of $440,400.00. Following the completion of the transaction, the director directly owned 293,259 shares in the company, valued at approximately $4,305,042.12. This trade represents a 11.40% increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Over the last ninety days, insiders have bought 33,550 shares of company stock worth $490,146. 7.79% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Lovesac

Institutional investors have recently added to or reduced their stakes in the company. AWM Investment Company Inc. bought a new position in shares of Lovesac during the 2nd quarter valued at approximately $10,188,000. GSA Capital Partners LLP purchased a new position in shares of Lovesac in the second quarter valued at $1,149,000. Man Group plc bought a new stake in Lovesac in the second quarter worth $1,594,000. BlackRock Inc. bought a new stake in Lovesac in the second quarter worth $20,250,000. Finally, 1492 Capital Management LLC purchased a new stake in Lovesac during the first quarter valued at $1,206,000. Hedge funds and other institutional investors own 91.32% of the company's stock.

Lovesac Price Performance

NASDAQ:LOVE opened at $16.69 on Tuesday. The business's 50-day simple moving average is $16.96 and its two-hundred day simple moving average is $15.43. The stock has a market cap of $244.34 million, a PE ratio of 64.19, a P/E/G ratio of 0.94 and a beta of 2.03. Lovesac has a 52 week low of $10.33 and a 52 week high of $20.88.

Lovesac (NASDAQ:LOVE - Get Free Report) last announced its quarterly earnings data on Thursday, June 11th. The company reported ($0.76) EPS for the quarter, beating the consensus estimate of ($1.03) by $0.27. The business had revenue of $138.20 million for the quarter, compared to the consensus estimate of $136.66 million. Lovesac had a return on equity of 1.88% and a net margin of 0.55%.The business's revenue was down .1% on a year-over-year basis. During the same period in the previous year, the business earned ($0.73) earnings per share. Lovesac has set its Q2 2027 guidance at 0.200-0.480 EPS and its FY 2027 guidance at 0.340-0.810 EPS. Sell-side analysts anticipate that Lovesac will post 0.5 earnings per share for the current fiscal year.

About Lovesac

Lovesac, trading on NASDAQ under the symbol LOVE, is an American furniture company known for its modular seating systems and distinctive foam-filled “Sacs.” Founded in 1995 by Shawn Nelson, the company has built a reputation for innovative design that emphasizes comfort, durability and adaptability. Its core offerings include Sactionals—customizable sectional sofas assembled from individual “Sactional” cubes—and the original Lovesac Sacs, large fabric-covered bean bag chairs available in a variety of sizes and materials.

In addition to seating solutions, Lovesac has expanded into home entertainment products with the introduction of the Stage, a modular soundbar system designed to integrate seamlessly with Sactionals.

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