Arhaus (NASDAQ:ARHS) Shares Gap Up - What's Next?

Key Points

• Arhaus shares opened sharply higher, rising from a prior close of $7.79 to $8.60 before trading around $8.53.
• Analyst sentiment is favorable: the stock carries a “Moderate Buy” consensus rating, with five Buy and five Hold ratings and an average price target of $10.22.
• Arhaus exceeded quarterly expectations, reporting $0.28 EPS versus $0.16 expected and $384.9 million in revenue, up 7.5% year over year.

Arhaus, Inc. (NASDAQ:ARHS - Get Free Report) shares gapped up prior to trading on Monday . The stock had previously closed at $7.79, but opened at $8.60. Arhaus shares last traded at $8.5330, with a volume of 197,121 shares changing hands.

Wall Street Analysts Forecast Growth

A number of analysts have issued reports on ARHS shares. Piper Sandler boosted their price objective on shares of Arhaus from $8.00 to $9.00 and gave the company a "neutral" rating in a report on Friday, August 7th. Jefferies Financial Group upgraded shares of Arhaus from a "hold" rating to a "buy" rating and lifted their price target for the company from $9.50 to $10.00 in a research report on Monday. Wall Street Zen upgraded Arhaus from a "sell" rating to a "hold" rating in a research note on Monday, July 20th. Morgan Stanley boosted their price target on Arhaus from $9.00 to $10.00 and gave the company an "equal weight" rating in a research note on Friday, August 7th. Finally, Telsey Advisory Group increased their price target on Arhaus from $8.00 to $10.00 and gave the stock a "market perform" rating in a research report on Friday, August 7th. Five equities research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $10.22.

Arhaus Price Performance

The company has a 50 day moving average price of $8.45 and a 200-day moving average price of $7.56. 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 company has a market cap of $1.23 billion, a price-to-earnings ratio of 17.30, a P/E/G ratio of 2.46 and a beta of 2.30.

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

Insider Buying and Selling

In other news, Director Alton F. Doody III sold 3,500 shares of the business's stock in a transaction dated Tuesday, September 8th. The shares were sold at an average price of $8.47, for a total transaction of $29,645.00. Following the completion of the sale, the director directly owned 87,113 shares of the company's stock, valued at $737,847.11. The trade was a 3.86% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Company insiders own 1.18% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of the business. Bank of America Corp DE grew its stake in shares of Arhaus by 2.1% during the 1st quarter. Bank of America Corp DE now owns 2,337,340 shares of the company's stock worth $15,847,000 after acquiring an additional 49,036 shares during the period. Meros Investment Management LP raised its stake in Arhaus by 71.1% in the 4th quarter. Meros Investment Management LP now owns 821,734 shares of the company's stock valued at $9,212,000 after acquiring an additional 341,577 shares during the period. Dimensional Fund Advisors LP lifted its holdings in Arhaus by 18.6% during the first quarter. Dimensional Fund Advisors LP now owns 1,179,268 shares of the company's stock valued at $7,994,000 after purchasing an additional 185,208 shares during the last quarter. Punch & Associates Investment Management Inc. lifted its holdings in Arhaus by 2.1% during the first quarter. Punch & Associates Investment Management Inc. now owns 1,115,665 shares of the company's stock valued at $7,564,000 after purchasing an additional 22,580 shares during the last quarter. Finally, Granite Investment Partners LLC boosted its position in Arhaus by 14.0% during the first quarter. Granite Investment Partners LLC now owns 460,322 shares of the company's stock worth $3,121,000 after purchasing an additional 56,628 shares during the period. Hedge funds and other institutional investors own 27.88% of the company's stock.

Arhaus Company Profile

Arhaus, Inc is a lifestyle-oriented home furnishings company that designs, sources and sells furniture and décor for residential spaces. Its product assortment includes living room, bedroom, dining room and outdoor furniture, as well as rugs, lighting, textiles, mattresses, wall art and other home accessories. The company emphasizes distinctive designs, handcrafted details and materials sourced from around the world.

Arhaus sells its products through a combination of physical showrooms, its website and other direct-to-consumer channels.

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