The Lovesac Company (NASDAQ:LOVE) Receives Average Recommendation of "Moderate Buy" from Analysts

Key Points

• Analyst sentiment is moderately bullish: Four of five analysts rate Lovesac a buy, while one rates it a sell. The average 12-month price target is $22.67, above the reported share price of $17.65.
• Lovesac beat quarterly expectations, reporting a loss of $0.76 per share versus the $1.03 consensus estimate and revenue of $138.2 million versus expectations of $136.66 million. However, revenue was slightly down year over year.
• Insider and institutional ownership remains notable: Director Andrew R. Heyer bought 30,000 shares worth $440,400, while institutional investors own 91.32% of the stock.

Shares of The Lovesac Company (NASDAQ:LOVE - Get Free Report) have been assigned an average recommendation of "Moderate Buy" from the five research firms that are currently covering the firm, MarketBeat reports. One investment analyst has rated the stock with a sell rating and four have given a buy rating to the company. The average 1 year price target among brokerages that have issued ratings on the stock in the last year is $22.6667.

Several research analysts recently issued reports on LOVE shares. Canaccord Genuity Group set a $22.00 price target on shares of Lovesac in a research report on Thursday, June 11th. Weiss Ratings restated a "sell (d)" rating on shares of Lovesac in a research note on Wednesday, June 24th. Finally, DA Davidson lifted their price objective on Lovesac from $18.00 to $20.00 and gave the company a "buy" rating in a report on Friday, June 12th.

Lovesac Price Performance

LOVE opened at $17.65 on Friday. Lovesac has a fifty-two week low of $10.33 and a fifty-two week high of $20.88. The firm's fifty day moving average price is $16.71 and its two-hundred day moving average price is $15.08. The company has a market capitalization of $258.40 million, a P/E ratio of 67.88, a P/E/G ratio of 0.98 and a beta of 2.02.

Lovesac (NASDAQ:LOVE - Get Free Report) last announced its quarterly earnings data on Thursday, June 11th. The company reported ($0.76) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($1.03) by $0.27. The company had revenue of $138.20 million during the quarter, compared to analysts' expectations of $136.66 million. Lovesac had a net margin of 0.55% and a return on equity of 1.88%. The business's revenue was down .1% on a year-over-year basis. During the same quarter in the prior year, the company posted ($0.73) EPS. Lovesac has set its Q2 2027 guidance at 0.200-0.480 EPS and its FY 2027 guidance at 0.340-0.810 EPS. On average, equities research analysts expect that Lovesac will post 0.5 EPS for the current fiscal year.

Insider Activity at Lovesac

In related news, Director Andrew R. Heyer purchased 30,000 shares of the firm's stock in a transaction that occurred on Thursday, June 18th. The shares were acquired at an average price of $14.68 per share, with a total value of $440,400.00. Following the purchase, the director directly owned 293,259 shares in the company, valued at $4,305,042.12. This represents a 11.40% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available through the SEC website. In the last ninety days, insiders purchased 33,550 shares of company stock worth $490,146. 7.79% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the stock. BNP Paribas Financial Markets grew its holdings in shares of Lovesac by 130.4% in the 2nd quarter. BNP Paribas Financial Markets now owns 1,938 shares of the company's stock worth $35,000 after purchasing an additional 1,097 shares during the last quarter. Ancora Advisors LLC acquired a new stake in shares of Lovesac during the 3rd quarter worth about $146,000. XTX Topco Ltd bought a new position in Lovesac during the 4th quarter valued at about $149,000. PFG Investments LLC bought a new position in Lovesac during the 4th quarter valued at about $156,000. Finally, HRT Financial LP acquired a new position in Lovesac in the fourth quarter valued at about $160,000. 91.32% of the stock is owned by institutional investors.

Lovesac Company Profile

Lovesac, trading on NASDAQ under the symbol LOVE, is an American furniture company known for its modular seating systems and distinctive foam-filled “Sacs.” Founded in 1995 by Shawn Nelson, the company has built a reputation for innovative design that emphasizes comfort, durability and adaptability. Its core offerings include Sactionals—customizable sectional sofas assembled from individual “Sactional” cubes—and the original Lovesac Sacs, large fabric-covered bean bag chairs available in a variety of sizes and materials.

In addition to seating solutions, Lovesac has expanded into home entertainment products with the introduction of the Stage, a modular soundbar system designed to integrate seamlessly with Sactionals.

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