Arhaus (NASDAQ:ARHS) Shares Gap Up – Should You Buy?

Shares of Arhaus, Inc. (NASDAQ:ARHS) gapped up before the market opened on Monday . The stock had previously closed at $7.79, but opened at $8.60. Arhaus shares last traded at $8.5330, with a volume of 197,121 shares changing hands.

Analyst Ratings Changes

A number of analysts recently issued reports on the company. Craig Hallum upgraded Arhaus from a “hold” rating to a “buy” rating and set a $12.00 price objective on the stock in a research note on Thursday, August 6th. Telsey Advisory Group lifted their target price on Arhaus from $8.00 to $10.00 and gave the company a “market perform” rating in a report on Friday, August 7th. Wall Street Zen upgraded Arhaus from a “sell” rating to a “hold” rating in a research report on Monday, July 20th. Jefferies Financial Group raised shares of Arhaus from a “hold” rating to a “buy” rating and increased their price target for the stock from $9.50 to $10.00 in a report on Monday. Finally, Piper Sandler raised their price objective on shares of Arhaus from $8.00 to $9.00 and gave the company a “neutral” rating in a research report on Friday, August 7th. Five equities research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company’s stock. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $10.22.

Arhaus Trading Up 11.0%

The firm has a market cap of $1.23 billion, a P/E ratio of 17.30, a PEG ratio of 2.46 and a beta of 2.30. The company has a debt-to-equity ratio of 0.13, a current ratio of 1.33 and a quick ratio of 0.60. The stock has a 50 day moving average of $8.45 and a 200 day moving average of $7.56.

Arhaus (NASDAQ:ARHS) last issued its earnings results on Thursday, August 6th. The company reported $0.28 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.16 by $0.12. The business had revenue of $384.90 million during the quarter, compared to analyst estimates of $365.66 million. Arhaus had a return on equity of 17.23% and a net margin of 4.91%.Arhaus’s revenue for the quarter was up 7.5% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.25 earnings per share. As a group, equities research analysts predict that Arhaus, Inc. will post 0.54 EPS for the current year.

Insider Transactions at Arhaus

In other Arhaus news, Director Alton F. Doody III sold 3,500 shares of the company’s stock in a transaction that occurred on Tuesday, September 8th. The stock was sold at an average price of $8.47, for a total transaction of $29,645.00. Following the completion of the transaction, the director owned 87,113 shares of the company’s stock, valued at $737,847.11. This represents a 3.86% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. 1.18% of the stock is currently owned by corporate insiders.

Institutional Trading of Arhaus

Several large investors have recently bought and sold shares of the company. 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 purchasing an additional 185,208 shares in the last quarter. Arrowstreet Capital Limited Partnership boosted its holdings in shares of Arhaus by 95.1% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 459,025 shares of the company’s stock valued at $3,112,000 after buying an additional 223,692 shares in the last quarter. Bank of New York Mellon Corp bought a new stake in shares of Arhaus during the 2nd quarter valued at $1,582,000. Hardin Capital Partners LLC purchased a new stake in shares of Arhaus in the 2nd quarter worth about $672,000. Finally, Engineers Gate Manager LP grew its position in shares of Arhaus by 54.4% in the 2nd quarter. Engineers Gate Manager LP now owns 213,976 shares of the company’s stock worth $1,802,000 after buying an additional 75,371 shares during the period. 27.88% of the stock is owned by institutional investors.

About Arhaus

Arhaus, Inc is a lifestyle-oriented home furnishings company that designs, sources and sells furniture and décor for residential spaces. Its product assortment includes living room, bedroom, dining room and outdoor furniture, as well as rugs, lighting, textiles, mattresses, wall art and other home accessories. The company emphasizes distinctive designs, handcrafted details and materials sourced from around the world.

Arhaus sells its products through a combination of physical showrooms, its website and other direct-to-consumer channels.