Arhaus (NASDAQ:ARHS) Trading Down 6.5% - What's Next?

Key Points

• Arhaus shares fell 6.5% to approximately $7.59 in midday trading, with volume down 81% from the average. The stock’s 200-day moving average is $7.59, compared with a 50-day average of $8.49.
• Analysts maintain a consensus “Hold” rating with an average price target of $10.12; four analysts rate the stock a Buy and seven rate it a Hold.
• The company recently exceeded quarterly expectations, reporting $0.28 in EPS versus estimates of $0.16 and revenue of $384.9 million, up 7.5% year over year. A director sold 3,500 shares, while institutional investors own 27.88% of the company.

Arhaus, Inc. (NASDAQ:ARHS - Get Free Report)'s share price traded down 6.5% during mid-day trading on Tuesday . The company traded as low as $7.63 and last traded at $7.5930. 252,927 shares traded hands during trading, a decline of 81% from the average daily volume of 1,318,628 shares. The stock had previously closed at $8.12.

Analyst Ratings Changes

ARHS has been the subject of several research reports. Telsey Advisory Group lifted their price objective on shares of Arhaus from $8.00 to $10.00 and gave the stock a "market perform" rating in a research note on Friday, August 7th. Weiss Ratings raised Arhaus from a "hold (c-)" rating to a "hold (c)" rating in a research report on Monday, August 17th. Wall Street Zen upgraded Arhaus from a "sell" rating to a "hold" rating in a research note on Monday, July 20th. Craig Hallum upgraded Arhaus from a "hold" rating to a "buy" rating and set a $12.00 price objective for the company in a research note on Thursday, August 6th. Finally, Piper Sandler lifted their target price on Arhaus from $8.00 to $9.00 and gave the stock a "neutral" rating in a report on Friday, August 7th. Four equities research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company's stock. According to data from MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus target price of $10.12.

Arhaus Stock Down 8.8%

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 capitalization of $1.05 billion, a price-to-earnings ratio of 14.79, a P/E/G ratio of 2.56 and a beta of 2.30. The business's 50-day moving average is $8.49 and its 200-day moving average is $7.59.

Arhaus (NASDAQ:ARHS - Get Free Report) last issued its earnings results 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 company's revenue was up 7.5% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.25 earnings per share. As a group, equities analysts predict that Arhaus, Inc. will post 0.54 earnings per share for the current year.

Insider Transactions at Arhaus

In related news, Director Alton F. Doody III sold 3,500 shares of the firm's stock in a transaction on Tuesday, September 8th. The shares were sold at an average price of $8.47, for a total transaction of $29,645.00. Following the sale, the director owned 87,113 shares in the company, valued at approximately $737,847.11. This trade represents a 3.86% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Company insiders own 1.18% of the company's stock.

Hedge Funds Weigh In On Arhaus

Several institutional investors and hedge funds have recently modified their holdings of ARHS. Meros Investment Management LP lifted its holdings in Arhaus by 71.1% during the fourth quarter. Meros Investment Management LP now owns 821,734 shares of the company's stock valued at $9,212,000 after purchasing an additional 341,577 shares in the last quarter. Arrowstreet Capital Limited Partnership raised its position in shares of Arhaus by 95.1% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 459,025 shares of the company's stock worth $3,112,000 after purchasing an additional 223,692 shares during the last quarter. Atlas Capital Advisors Inc. purchased a new position in Arhaus in the 4th quarter valued at about $2,506,000. Bank of New York Mellon Corp purchased a new position in Arhaus in the 2nd quarter valued at about $1,582,000. Finally, Dimensional Fund Advisors LP boosted its holdings in Arhaus by 18.6% in the 1st quarter. Dimensional Fund Advisors LP now owns 1,179,268 shares of the company's stock worth $7,994,000 after buying an additional 185,208 shares during the last quarter. Hedge funds and other institutional investors own 27.88% of the company's stock.

About Arhaus

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.