Lovesac (NASDAQ:LOVE) Earns Buy Rating from DA Davidson

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 report issued on Tuesday,Benzinga reports. They currently have a $24.00 price target on the stock. DA Davidson's target price would indicate a potential upside of 23.33% from the company's previous close.

Separately, Wall Street Zen upgraded Lovesac from a "sell" rating to a "hold" rating in a report on Saturday, July 12th. Five analysts have rated the stock with a Buy rating, According to data from MarketBeat, the company has an average rating of "Buy" and an average price target of $30.40.

Lovesac Trading Down 4.7%

NASDAQ:LOVE opened at $19.46 on Tuesday. Lovesac has a 12 month low of $12.12 and a 12 month high of $39.49. The stock has a 50 day moving average of $18.82 and a two-hundred day moving average of $18.74. The firm has a market cap of $283.14 million, a P/E ratio of 27.80, a price-to-earnings-growth ratio of 0.65 and a beta of 2.35.

Lovesac (NASDAQ:LOVE - Get Free Report) last posted its quarterly earnings data on Thursday, June 12th. The company reported ($0.73) EPS for the quarter, topping the consensus estimate of ($0.81) by $0.08. Lovesac had a return on equity of 6.70% and a net margin of 1.99%.The company had revenue of $138.37 million during the quarter, compared to analyst estimates of $137.20 million. During the same period in the previous year, the business earned ($0.83) EPS. Lovesac's quarterly revenue was up 4.4% on a year-over-year basis. Lovesac has set its Q2 2026 guidance at -0.830--0.580 EPS. FY 2026 guidance at 0.800-1.360 EPS. On average, research analysts forecast that Lovesac will post 0.39 earnings per share for the current year.

Insider Buying and Selling

In other Lovesac news, Director Walter Field Mclallen acquired 1,950 shares of the firm's stock in a transaction that occurred on Friday, June 20th. The shares were purchased at an average cost of $18.08 per share, for a total transaction of $35,256.00. Following the completion of the acquisition, the director owned 40,000 shares of the company's stock, valued at approximately $723,200. The trade was a 5.12% increase in their position. The purchase was disclosed in a legal filing with the SEC, which is available at this hyperlink. Corporate insiders own 12.46% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in LOVE. Heck Capital Advisors LLC acquired a new position in Lovesac in the fourth quarter valued at approximately $26,000. BNP Paribas Financial Markets lifted its stake in Lovesac by 130.4% during the second quarter. BNP Paribas Financial Markets now owns 1,938 shares of the company's stock worth $35,000 after purchasing an additional 1,097 shares in the last quarter. Public Employees Retirement System of Ohio acquired a new position in Lovesac during the second quarter worth $36,000. Cubist Systematic Strategies LLC acquired a new position in Lovesac during the fourth quarter worth $49,000. Finally, Quarry LP lifted its stake in Lovesac by 396.3% during the first quarter. Quarry LP now owns 3,052 shares of the company's stock worth $55,000 after purchasing an additional 2,437 shares in the last quarter. 91.32% of the stock is currently owned by institutional investors and hedge funds.

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.

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