DA Davidson Reaffirms "Buy" Rating for Lovesac (NASDAQ:LOVE)

Key Points

• DA Davidson has reissued a "buy" rating for Lovesac, setting a price target of $24.00, indicating a potential upside of 23.33% from its last close.
• Lovesac reported better-than-expected quarterly earnings with an EPS of ($0.73), surpassing analysts' estimates of ($0.81), while revenue increased 4.4% year-over-year.
• Corporate insiders hold 12.46% of Lovesac's shares, with significant recent purchases including 1,950 shares acquired by Director Walter Field Mclallen.

Lovesac (NASDAQ:LOVE - Get Free Report)'s stock had its "buy" rating reissued by investment analysts at DA Davidson in a research note issued to investors on Tuesday, MarketBeat reports. They presently have a $24.00 target price on the stock. DA Davidson's price target would suggest a potential upside of 35.90% from the stock's previous close.

Separately, Wall Street Zen upgraded Lovesac from a "sell" rating to a "hold" rating in a research note on Saturday, July 12th. Five research analysts have rated the stock with a Buy rating, Based on data from MarketBeat, the company presently has an average rating of "Buy" and a consensus price target of $30.00.

Lovesac Stock Performance

Shares of LOVE stock traded down $0.01 during mid-day trading on Tuesday, hitting $17.66. The company's stock had a trading volume of 732,738 shares, compared to its average volume of 408,326. The company's fifty day simple moving average is $18.78 and its 200-day simple moving average is $18.68. Lovesac has a 52 week low of $12.12 and a 52 week high of $39.49. The company has a market cap of $256.94 million, a PE ratio of 28.03, a P/E/G ratio of 0.56 and a beta of 2.35.

Lovesac (NASDAQ:LOVE - Get Free Report) last posted its quarterly earnings data on Thursday, September 11th. The company reported ($0.45) earnings per share for the quarter, topping the consensus estimate of ($0.72) by $0.27. Lovesac had a return on equity of 6.30% and a net margin of 1.87%.The firm had revenue of $160.53 million during the quarter, compared to analyst estimates of $160.42 million. During the same period last year, the company posted ($0.38) EPS. The business's quarterly revenue was up 2.5% on a year-over-year basis. Lovesac has set its Q3 2026 guidance at -0.830--0.51 EPS. FY 2026 guidance at 0.520-1.05 EPS. On average, equities analysts anticipate that Lovesac will post 0.39 earnings per share for the current year.

Insider Transactions at Lovesac

In related news, Director Walter Field Mclallen purchased 1,950 shares of the business's stock in a transaction on Friday, June 20th. The stock was acquired at an average price of $18.08 per share, for a total transaction of $35,256.00. Following the purchase, the director owned 40,000 shares of the company's stock, valued at approximately $723,200. This trade represents a 5.12% increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Company insiders own 12.46% of the company's stock.

Hedge Funds Weigh In On Lovesac

Hedge funds have recently modified their holdings of the company. Nomura Holdings Inc. boosted its stake in shares of Lovesac by 222.9% in the 2nd quarter. Nomura Holdings Inc. now owns 145,721 shares of the company's stock worth $2,652,000 after buying an additional 100,586 shares during the last quarter. Corient Private Wealth LLC purchased a new position in shares of Lovesac in the 2nd quarter worth approximately $2,024,000. MML Investors Services LLC boosted its stake in shares of Lovesac by 1.0% in the 2nd quarter. MML Investors Services LLC now owns 218,845 shares of the company's stock worth $3,983,000 after buying an additional 2,203 shares during the last quarter. BNP Paribas Financial Markets boosted its stake in shares of Lovesac by 130.4% in the 2nd quarter. BNP Paribas Financial Markets now owns 1,938 shares of the company's stock worth $35,000 after buying an additional 1,097 shares during the last quarter. Finally, Bridgeway Capital Management LLC boosted its stake in shares of Lovesac by 252.8% in the 2nd quarter. Bridgeway Capital Management LLC now owns 306,687 shares of the company's stock worth $5,582,000 after buying an additional 219,762 shares during the last quarter. Institutional investors own 91.32% of the company's stock.

About Lovesac

The Lovesac Company designs, manufactures, and sells furniture. It offers sactionals, such as seats and sides; sacs, including foam beanbag chairs; and other products comprising drink holders, footsac blankets, decorative pillows, fitted seat tables, and ottomans. The company markets its products primarily through www.lovesac.com website, as well as showrooms at top tier malls, lifestyle centers, mobile concierges, kiosks, and street locations in 41 states in the United States; and in store pop-up- shops and shop-in-shops, and barter inventory transactions.