Canaccord Genuity Group Reaffirms Buy Rating for Lovesac (NASDAQ:LOVE)

Key Points

• Canaccord Genuity Group has reiterated a "buy" rating for Lovesac (LOVE) with a target price of $30.00, suggesting a potential upside of 69.78% from the current stock level.
• The company's stock has experienced a 14.8% decline recently, with its current price around $17.67 and a twelve-month range between $12.12 and $39.49.
• Following recent earnings results that exceeded estimates, Lovesac’s consensus rating remains a "buy," with expectations for the current fiscal year's earnings projected at 0.39 EPS.

Lovesac (NASDAQ:LOVE - Get Free Report)'s stock had its "buy" rating reissued by equities research analysts at Canaccord Genuity Group in a note issued to investors on Friday,Benzinga reports. They currently have a $30.00 price objective on the stock. Canaccord Genuity Group's target price points to a potential upside of 59.66% from the company's current price.

LOVE has been the subject of a number of other reports. DA Davidson reiterated a "buy" rating and issued a $24.00 target price on shares of Lovesac in a research note on Tuesday, September 9th. Wall Street Zen upgraded shares of Lovesac from a "sell" rating to a "hold" rating in a research report on Saturday, July 12th. Five investment analysts have rated the stock with a Buy rating, According to MarketBeat, Lovesac has an average rating of "Buy" and a consensus target price of $30.00.

Lovesac Trading Up 4.7%

Shares of NASDAQ:LOVE traded up $0.84 during midday trading on Friday, reaching $18.79. 292,484 shares of the company were exchanged, compared to its average volume of 418,008. The business's fifty day moving average is $18.75 and its two-hundred day moving average is $18.63. Lovesac has a one year low of $12.12 and a one year high of $39.49. The stock has a market cap of $274.52 million, a PE ratio of 29.82, a price-to-earnings-growth ratio of 0.84 and a beta of 2.35.

Lovesac (NASDAQ:LOVE - Get Free Report) last issued its earnings results on Thursday, September 11th. The company reported ($0.45) earnings per share for the quarter, topping analysts' consensus estimates of ($0.72) by $0.27. The firm had revenue of $160.53 million during the quarter, compared to analyst estimates of $160.42 million. Lovesac had a net margin of 1.87% and a return on equity of 6.35%. Lovesac's revenue for the quarter was up 2.5% on a year-over-year basis. During the same quarter in the prior year, the business earned ($0.38) earnings per share. Lovesac has set its Q3 2026 guidance at -0.830--0.51 EPS. FY 2026 guidance at 0.520-1.05 EPS. As a group, sell-side analysts expect that Lovesac will post 0.39 EPS for the current year.

Insiders Place Their Bets

In other news, Director Walter Field Mclallen purchased 1,950 shares of the business's stock in a transaction dated Friday, June 20th. The shares were bought 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 directly owned 40,000 shares in the company, valued at approximately $723,200. This trade represents a 5.12% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Corporate insiders own 12.46% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the company. Nomura Holdings Inc. grew 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 valued at $2,652,000 after buying an additional 100,586 shares during the period. Corient Private Wealth LLC purchased a new position in Lovesac in the second quarter worth $2,024,000. MML Investors Services LLC lifted its stake in Lovesac by 1.0% in the second quarter. MML Investors Services LLC now owns 218,845 shares of the company's stock worth $3,983,000 after purchasing an additional 2,203 shares during the last quarter. BNP Paribas Financial Markets raised its stake in Lovesac by 130.4% in the second 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 in the last quarter. Finally, Bridgeway Capital Management LLC grew its holdings in shares of Lovesac by 252.8% during the second quarter. Bridgeway Capital Management LLC now owns 306,687 shares of the company's stock valued at $5,582,000 after buying an additional 219,762 shares during the last quarter. 91.32% of the stock is currently owned by institutional investors.

Lovesac Company Profile

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.