The Lovesac Company (NASDAQ:LOVE) Receives Consensus Rating of "Moderate Buy" from Brokerages

Key Points

• Brokerages assign a consensus rating of Moderate Buy on Lovesac (4 buys, 1 sell) with an average 12‑month price target of $22.67.
• Lovesac beat the quarter (EPS $2.19 vs. $2.00 estimate; revenue $248.05M vs. $242.77M) but reported thin profitability (net margin 0.58%, ROE 2.02%).
• Shares trade around $15.35 with a market cap of about $224M and a high P/E (~52.9); institutional investors own roughly 91% of the stock.

The Lovesac Company (NASDAQ:LOVE - Get Free Report) has received a consensus recommendation of "Moderate Buy" from the five ratings firms that are presently covering the firm, MarketBeat reports. One research analyst has rated the stock with a sell rating and four have assigned a buy rating to the company. The average 12-month price objective among brokers that have issued a report on the stock in the last year is $22.6667.

Several research firms recently weighed in on LOVE. Wall Street Zen upgraded Lovesac from a "sell" rating to a "hold" rating in a report on Saturday, April 4th. Weiss Ratings restated a "sell (d)" rating on shares of Lovesac in a report on Friday, March 27th. Maxim Group set a $26.00 price objective on Lovesac in a report on Friday, December 12th. Roth Mkm restated a "buy" rating on shares of Lovesac in a report on Friday, March 27th. Finally, Canaccord Genuity Group decreased their price objective on Lovesac from $30.00 to $24.00 and set a "buy" rating for the company in a report on Friday, December 12th.

Lovesac Price Performance

LOVE stock opened at $15.35 on Friday. The business has a 50-day moving average price of $12.89 and a 200 day moving average price of $13.96. The company has a market capitalization of $224.42 million, a P/E ratio of 52.93, a PEG ratio of 0.69 and a beta of 2.21. Lovesac has a 1-year low of $10.33 and a 1-year high of $21.90.

Lovesac (NASDAQ:LOVE - Get Free Report) last released its quarterly earnings data on Thursday, March 26th. The company reported $2.19 earnings per share for the quarter, beating the consensus estimate of $2.00 by $0.19. The firm had revenue of $248.05 million during the quarter, compared to the consensus estimate of $242.77 million. Lovesac had a return on equity of 2.02% and a net margin of 0.58%.The firm's quarterly revenue was up 2.7% on a year-over-year basis. During the same period in the previous year, the company posted $2.13 earnings per share. On average, analysts anticipate that Lovesac will post 0.39 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Lovesac

Large investors have recently added to or reduced their stakes in the company. Corient Private Wealth LLC bought a new position in Lovesac in the second quarter worth about $2,024,000. Isthmus Partners LLC bought a new position in Lovesac in the third quarter worth about $2,348,000. BCGM Wealth Management LLC raised its holdings in Lovesac by 77.4% in the fourth quarter. BCGM Wealth Management LLC now owns 241,532 shares of the company's stock worth $3,563,000 after purchasing an additional 105,349 shares in the last quarter. AWM Investment Company Inc. raised its holdings in Lovesac by 7.2% in the second quarter. AWM Investment Company Inc. now owns 730,960 shares of the company's stock worth $13,303,000 after purchasing an additional 49,219 shares in the last quarter. Finally, Quantbot Technologies LP bought a new position in Lovesac in the third quarter worth about $249,000. 91.32% of the stock is currently 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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