Lovesac (NASDAQ:LOVE) Share Price Crosses Below 200 Day Moving Average - Should You Sell?

Key Points

• Lovesac shares slipped below their 200-day moving average, trading as low as $15.03 versus the average of $15.19 and last at $15.14.
• Analyst sentiment remains positive overall: MarketBeat reports a “Moderate Buy” consensus and a $21.33 average price target, although some analysts recently lowered their targets.
• In its latest reported quarter, Lovesac posted EPS of $0.51, beating the consensus estimate of a $0.36 loss; revenue of $161.25 million came in slightly below estimates and rose 0.5% year over year.

Shares of The Lovesac Company (NASDAQ:LOVE - Get Free Report) crossed below its two hundred day moving average during trading on Friday. The stock has a two hundred day moving average of $15.19 and traded as low as $15.03. Lovesac shares last traded at $15.14, with a volume of 120,310 shares traded.

Analyst Upgrades and Downgrades

LOVE has been the topic of a number of recent analyst reports. Wall Street Zen raised shares of Lovesac from a "hold" rating to a "buy" rating in a research note on Saturday, October 31st. Roth Capital reiterated a "buy" rating on shares of Lovesac in a report on Friday, September 11th. Weiss Ratings cut shares of Lovesac from a "hold (c)" rating to a "hold (c-)" rating in a research note on Monday. DA Davidson dropped their price objective on Lovesac from $20.00 to $18.00 and set a "buy" rating for the company in a report on Friday, September 11th. Finally, Canaccord Genuity Group dropped their price objective on Lovesac from $22.00 to $20.00 and set a "buy" rating for the company in a report on Thursday, September 10th. Three analysts have rated the stock with a Buy rating and one has given a Hold rating to the company's stock. According to data from MarketBeat.com, Lovesac presently has an average rating of "Moderate Buy" and an average target price of $21.33.

Lovesac Stock Performance

The stock has a fifty day moving average price of $15.14 and a 200-day moving average price of $15.19. The firm has a market cap of $218.32 million, a PE ratio of 12.41, a PEG ratio of 0.40 and a beta of 2.12.

Lovesac (NASDAQ:LOVE - Get Free Report) last posted its quarterly earnings results on Thursday, September 10th. The company reported $0.51 EPS for the quarter, beating the consensus estimate of ($0.36) by $0.87. Lovesac had a net margin of 2.56% and a return on equity of 2.57%. The firm had revenue of $161.25 million for the quarter, compared to analyst estimates of $161.55 million. During the same quarter last year, the firm posted ($0.45) earnings per share. Lovesac's revenue for the quarter was up .5% compared to the same quarter last year. Lovesac has set its Q3 2027 guidance at 0.620-0.830 EPS and its FY 2027 guidance at 0.980-1.260 EPS. As a group, equities analysts predict that The Lovesac Company will post 1.08 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Lovesac

Several hedge funds and other institutional investors have recently made changes to their positions in the business. BlackRock Inc. purchased a new stake in Lovesac during the 2nd quarter worth $20,250,000. Senvest Management LLC raised its position in Lovesac by 36.7% in the first quarter. Senvest Management LLC now owns 1,025,393 shares of the company's stock valued at $15,145,000 after purchasing an additional 275,252 shares during the period. AWM Investment Company Inc. acquired a new position in shares of Lovesac during the second quarter worth about $10,188,000. Kanen Wealth Management LLC acquired a new position in shares of Lovesac during the first quarter worth about $8,064,000. Finally, Bastion Asset Management Inc. lifted its stake in shares of Lovesac by 193.6% during the first quarter. Bastion Asset Management Inc. now owns 356,097 shares of the company's stock worth $5,290,000 after purchasing an additional 234,812 shares in the last quarter. Institutional investors and hedge funds own 91.32% of the company's stock.

Lovesac Company Profile

Lovesac Company designs, manufactures and sells furniture and related home furnishings. Its products include Sactionals, a modular seating system that customers can configure and reconfigure, and Sacs, oversized foam-filled chairs. The company also offers accessories such as washable covers, pillows and tables. Founded by Shawn Nelson in 1995, Lovesac sells primarily through its e-commerce platform and company-operated showrooms, with additional sales through other channels. Its business and retail presence are focused mainly on the United States.

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.