Wall Street Zen Downgrades Arhaus (NASDAQ:ARHS) to Sell

Key Points

• Wall Street Zen downgraded Arhaus from “hold” to “sell,” adding to a generally cautious analyst outlook on the stock.
• Other firms have also turned more conservative: TD Cowen, Piper Sandler, and Jefferies all cut price targets recently, while the overall consensus rating remains Hold with an average price target of $9.58.
• Arhaus recently reported quarterly EPS of $0.02, matching expectations, with revenue of $314.28 million slightly above estimates; shares were trading around $7.86 at the time of the report.

Arhaus (NASDAQ:ARHS - Get Free Report) was downgraded by research analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a note issued to investors on Sunday.

ARHS has been the subject of a number of other reports. TD Cowen cut their target price on shares of Arhaus from $9.00 to $8.00 and set a "buy" rating for the company in a report on Monday, May 11th. Weiss Ratings reiterated a "hold (c-)" rating on shares of Arhaus in a research report on Wednesday, June 17th. Piper Sandler dropped their price objective on shares of Arhaus from $11.00 to $8.00 and set a "neutral" rating for the company in a research note on Monday, May 11th. Jefferies Financial Group reduced their target price on shares of Arhaus from $9.50 to $7.25 and set a "hold" rating on the stock in a report on Tuesday, April 7th. Finally, Robert W. Baird set a $8.00 target price on shares of Arhaus in a research report on Friday, May 8th. Three equities research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company. According to MarketBeat, the stock presently has an average rating of "Hold" and a consensus price target of $9.58.

Arhaus Price Performance

Shares of NASDAQ:ARHS traded down $0.04 during mid-day trading on Friday, reaching $7.86. The stock had a trading volume of 1,002,680 shares, compared to its average volume of 1,239,824. The business's 50 day moving average price is $7.04 and its 200 day moving average price is $8.25. Arhaus has a 1 year low of $5.57 and a 1 year high of $12.98. The company has a market cap of $1.11 billion, a P/E ratio of 16.72, a price-to-earnings-growth ratio of 3.16 and a beta of 2.28. The company has a current ratio of 1.25, a quick ratio of 0.46 and a debt-to-equity ratio of 0.14.

Arhaus (NASDAQ:ARHS - Get Free Report) last released its quarterly earnings results on Thursday, May 7th. The company reported $0.02 earnings per share for the quarter, meeting the consensus estimate of $0.02. Arhaus had a return on equity of 16.39% and a net margin of 4.67%.The business had revenue of $314.28 million during the quarter, compared to analysts' expectations of $313.97 million. During the same quarter last year, the business posted $0.03 EPS. The firm's revenue for the quarter was up .9% compared to the same quarter last year. Research analysts expect that Arhaus will post 0.47 EPS for the current fiscal year.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of ARHS. Wasatch Advisors LP raised its stake in shares of Arhaus by 6.8% in the second quarter. Wasatch Advisors LP now owns 12,703,259 shares of the company's stock valued at $110,137,000 after acquiring an additional 811,337 shares during the period. Vanguard Group Inc. raised its position in Arhaus by 1.4% in the 4th quarter. Vanguard Group Inc. now owns 5,143,024 shares of the company's stock worth $57,653,000 after purchasing an additional 72,346 shares during the period. Bank of America Corp DE raised its position in Arhaus by 9.4% in the 2nd quarter. Bank of America Corp DE now owns 3,213,288 shares of the company's stock worth $27,859,000 after purchasing an additional 275,835 shares during the period. Renaissance Technologies LLC lifted its stake in Arhaus by 10.7% in the fourth quarter. Renaissance Technologies LLC now owns 1,754,000 shares of the company's stock worth $19,662,000 after purchasing an additional 169,200 shares during the last quarter. Finally, Dimensional Fund Advisors LP boosted its position in shares of 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 buying an additional 185,208 shares during the period. 27.88% of the stock is owned by hedge funds and other institutional investors.

About Arhaus

Arhaus NASDAQ: ARHS is a U.S.-based retailer specializing in high-end home furnishings and décor. Since its founding in 1986 in northeastern Ohio, the company has built a reputation for curating unique, design-forward products that blend contemporary aesthetics with artisanal craftsmanship. Headquartered in Boston Heights, Ohio, Arhaus operates a network of brick-and-mortar galleries across the United States alongside a robust e-commerce platform, serving customers from coastal metropolitan areas to interior regions.

The company’s product portfolio encompasses a wide range of furniture categories—including sofas, dining tables, bedroom pieces and storage solutions—complemented by lighting fixtures, rugs, pillows, wall art and decorative accessories.

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.