Wall Street Zen Upgrades Lovesac (NASDAQ:LOVE) to Hold

Key Points

• Wall Street Zen upgraded Lovesac (NASDAQ:LOVE) from a "sell" to a "hold" in a recent research report.
• The stock carries a consensus rating of "Moderate Buy" with a consensus price target of $26.20, reflecting five Buy and one Sell analyst opinions.
• Lovesac beat the quarter with EPS $2.19 vs. $2.00 and revenue of $248.05M (+2.7% YoY), but reported a thin net margin (0.58%) and trades around $14.37 with a market cap of ~$210M and a P/E of 49.55.

Lovesac (NASDAQ:LOVE - Get Free Report) was upgraded by investment analysts at Wall Street Zen from a "sell" rating to a "hold" rating in a research report issued on Saturday.

Several other research analysts have also recently issued reports on the company. Weiss Ratings reaffirmed a "sell (d)" rating on shares of Lovesac in a report on Friday, March 27th. Maxim Group set a $26.00 price target on shares of Lovesac in a report on Friday, December 12th. Canaccord Genuity Group lowered their target price on Lovesac from $30.00 to $24.00 and set a "buy" rating on the stock in a research note on Friday, December 12th. Finally, DA Davidson lowered their target price on shares of Lovesac from $24.00 to $18.00 and set a "buy" rating on the stock in a research report on Thursday, December 11th. Five equities research analysts have rated the stock with a Buy rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, Lovesac currently has a consensus rating of "Moderate Buy" and a consensus price target of $26.20.

Lovesac Price Performance

Shares of LOVE stock opened at $14.37 on Friday. The firm has a market cap of $210.09 million, a P/E ratio of 49.55, a P/E/G ratio of 0.63 and a beta of 2.21. Lovesac has a 1-year low of $10.33 and a 1-year high of $21.90. The firm has a fifty day moving average of $12.73 and a two-hundred day moving average of $14.05.

Lovesac (NASDAQ:LOVE - Get Free Report) last released its earnings results 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. Lovesac had a net margin of 0.58% and a return on equity of 2.07%. The firm had revenue of $248.05 million during the quarter, compared to analyst estimates of $242.77 million. During the same quarter in the previous year, the firm earned $2.13 earnings per share. The firm's revenue for the quarter was up 2.7% compared to the same quarter last year. On average, sell-side analysts expect that Lovesac will post 0.39 EPS for the current year.

Institutional Investors Weigh In On Lovesac

A number of institutional investors have recently added to or reduced their stakes in LOVE. BNP Paribas Financial Markets grew its stake 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 valued at $35,000 after purchasing an additional 1,097 shares during the period. Meeder Asset Management Inc. boosted its stake in Lovesac by 147.9% in the 3rd quarter. Meeder Asset Management Inc. now owns 5,357 shares of the company's stock valued at $91,000 after buying an additional 3,196 shares in the last quarter. Ancora Advisors LLC bought a new stake in Lovesac in the third quarter valued at $146,000. XTX Topco Ltd bought a new stake in Lovesac in the fourth quarter valued at $149,000. Finally, PFG Investments LLC acquired a new position in Lovesac during the fourth quarter worth $156,000. 91.32% of the stock is owned by institutional investors and hedge funds.

About Lovesac

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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