Arhaus (NASDAQ:ARHS) Reaches New 12-Month High - Here's Why

Key Points

• Arhaus shares rose 8.5% to a new 12-month high, reaching $13.01 before last trading at $12.83, up from the prior close of $12.06.
• The company’s latest quarterly results beat estimates: EPS was $0.28 versus $0.16 expected, while revenue of $384.9 million exceeded the $365.7 million consensus and grew 7.5% year over year.
• Analysts collectively rate ARHS a “Moderate Buy”, with an average price target of $10.78—below the share price reported in the article; ratings include one Strong Buy, six Buys, and three Holds.

Arhaus, Inc. (NASDAQ:ARHS - Get Free Report)'s share price hit a new 52-week high on Wednesday. The company traded as high as $13.01 and last traded at $12.83, with a volume of 702,302 shares trading hands. The stock had previously closed at $12.06.

Analysts Set New Price Targets

ARHS has been the subject of several research reports. Jefferies Financial Group upgraded Arhaus from a "hold" rating to a "buy" rating and boosted their price objective for the stock from $9.50 to $10.00 in a research note on Monday, September 21st. Telsey Advisory Group lifted their price target on Arhaus from $10.00 to $11.00 and gave the stock a "market perform" rating in a research note on Tuesday, October 20th. Craig Hallum raised Arhaus from a "hold" rating to a "buy" rating and set a $12.00 price target on the stock in a research note on Thursday, August 6th. Wall Street Zen raised shares of Arhaus from a "sell" rating to a "hold" rating in a report on Monday, July 20th. Finally, Weiss Ratings upgraded shares of Arhaus from a "hold (c-)" rating to a "hold (c)" rating in a research report on Monday, August 17th. One equities research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating and three have given a Hold rating to the company's stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $10.78.

Arhaus Stock Up 8.5%

The company has a quick ratio of 0.60, a current ratio of 1.33 and a debt-to-equity ratio of 0.13. The firm has a market capitalization of $1.85 billion, a PE ratio of 26.15, a price-to-earnings-growth ratio of 3.56 and a beta of 2.24. The business has a 50-day moving average price of $9.63 and a 200-day moving average price of $8.37.

Arhaus (NASDAQ:ARHS - Get Free Report) last announced its quarterly earnings data on Thursday, August 6th. The company reported $0.28 EPS for the quarter, topping analysts' consensus estimates of $0.16 by $0.12. The firm had revenue of $384.90 million for the quarter, compared to the consensus estimate of $365.66 million. Arhaus had a return on equity of 17.23% and a net margin of 4.91%. The firm's revenue was up 7.5% compared to the same quarter last year. During the same quarter last year, the business posted $0.25 earnings per share. Equities research analysts forecast that Arhaus, Inc. will post 0.54 earnings per share for the current fiscal year.

Insider Buying and Selling at Arhaus

In related news, Director Alton F. Doody III sold 3,500 shares of the company's stock in a transaction dated Tuesday, September 8th. The shares were sold at an average price of $8.47, for a total value of $29,645.00. Following the completion of the sale, the director owned 87,113 shares of the company's stock, valued at approximately $737,847.11. This represents a 3.86% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. Insiders own 1.18% of the company's stock.

Hedge Funds Weigh In On Arhaus

Several institutional investors and hedge funds have recently bought and sold shares of the company. GAMMA Investing LLC raised its position in Arhaus by 85.0% in the third quarter. GAMMA Investing LLC now owns 2,611 shares of the company's stock valued at $25,000 after purchasing an additional 1,200 shares during the period. Engineers Gate Manager LP grew its holdings in shares of Arhaus by 54.4% during the 2nd quarter. Engineers Gate Manager LP now owns 213,976 shares of the company's stock worth $1,802,000 after purchasing an additional 75,371 shares during the period. Squarepoint Ops LLC purchased a new position in shares of Arhaus during the 2nd quarter worth $96,000. Ancora Advisors LLC acquired a new stake in shares of Arhaus during the 2nd quarter worth about $34,000. Finally, Bank of New York Mellon Corp acquired a new stake in shares of Arhaus during the 2nd quarter worth about $1,582,000. 27.88% of the stock is currently owned by institutional investors and hedge funds.

About Arhaus

Arhaus, Inc is a lifestyle-focused retailer of luxury and artisan-inspired furniture and home furnishings. The company offers products for living rooms, bedrooms, dining areas, offices and outdoor spaces, along with lighting, rugs, textiles, wall art, mirrors, décor and other home accessories.

Arhaus combines retail showrooms with e-commerce and interior design services, providing products intended to support a coordinated approach to home furnishing. Its collections are developed through collaborations with designers and craftspeople and may incorporate materials such as reclaimed wood, natural stone, upholstery fabrics and other distinctive finishes.

Founded in 1986, Arhaus serves customers primarily in the United States through its stores, online platform and interior design professionals.

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