Lovesac (NASDAQ:LOVE) Rating Increased to Buy at Wall Street Zen

by · The Markets Daily

Wall Street Zen upgraded shares of Lovesac (NASDAQ:LOVE – Free Report) from a hold rating to a buy rating in a research note issued to investors on Saturday,Wall Street Zen reports.

A number of other brokerages have also weighed in on LOVE. Canaccord Genuity Group decreased their target price on shares of Lovesac from $22.00 to $20.00 and set a “buy” rating for the company in a research note on Thursday. Weiss Ratings upgraded Lovesac from a “sell (d)” rating to a “hold (c)” rating in a research note on Thursday. Roth Capital reaffirmed a “buy” rating on shares of Lovesac in a report on Friday. Finally, DA Davidson reduced their price objective on Lovesac from $20.00 to $18.00 and set a “buy” rating for the company in a research report on Friday. Three equities research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company’s stock. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $21.33.

Read Our Latest Stock Report on LOVE

Lovesac Stock Down 2.5%

Shares of LOVE stock opened at $13.91 on Friday. The company has a 50 day moving average price of $16.80 and a 200-day moving average price of $15.46. Lovesac has a 52 week low of $10.33 and a 52 week high of $19.25. The firm has a market capitalization of $203.64 million, a PE ratio of 11.40, a P/E/G ratio of 0.35 and a beta of 2.03.

Lovesac (NASDAQ:LOVE – Get Free Report) last issued its quarterly earnings data on Thursday, September 10th. The company reported $0.51 earnings per share for the quarter, beating analysts’ consensus estimates of ($0.36) by $0.87. Lovesac had a net margin of 2.56% and a return on equity of 2.59%. The company had revenue of $161.25 million for the quarter, compared to the consensus estimate of $161.55 million. During the same quarter in the prior year, the firm earned ($0.45) earnings per share. The firm’s revenue for the quarter was up .5% compared to the same quarter last year. Lovesac has set its Q3 2027 guidance at 0.620-0.830 EPS and its FY 2027 guidance at 0.980-1.260 EPS. Analysts anticipate that Lovesac will post 1.12 earnings per share for the current year.

Insider Buying and Selling

In related news, Director Andrew Heyer acquired 30,000 shares of the business’s stock in a transaction on Thursday, June 18th. The stock was acquired at an average cost of $14.68 per share, with a total value of $440,400.00. Following the acquisition, the director directly owned 293,259 shares in the company, valued at $4,305,042.12. This represents a 11.40% increase in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Over the last 90 days, insiders purchased 33,550 shares of company stock valued at $490,146. 7.79% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Lovesac

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. BlackRock Inc. bought a new stake in Lovesac in the 2nd quarter worth approximately $20,250,000. Senvest Management LLC boosted its position in shares of Lovesac by 36.7% during the 1st quarter. Senvest Management LLC now owns 1,025,393 shares of the company’s stock valued at $15,145,000 after acquiring an additional 275,252 shares during the last quarter. AWM Investment Company Inc. purchased a new position in shares of Lovesac in the second quarter valued at $10,188,000. Kanen Wealth Management LLC purchased a new position in shares of Lovesac in the first quarter valued at $8,064,000. Finally, Arrowstreet Capital Limited Partnership increased its position in Lovesac by 41.9% in the third quarter. Arrowstreet Capital Limited Partnership now owns 375,883 shares of the company’s stock worth $6,364,000 after purchasing an additional 110,953 shares during the last quarter. Institutional investors own 91.32% of the company’s stock.

Key Headlines Impacting Lovesac

Here are the key news stories impacting Lovesac this week:

  • Positive Sentiment: Lovesac reported second-quarter fiscal 2027 net sales of approximately $161.2 million and EPS of $0.51, well above the consensus estimate for a loss of $0.36 per share. Revenue was roughly flat year over year, while the company said product launches remain on track for the second half of fiscal 2027. Lovesac second-quarter fiscal 2027 results
  • Positive Sentiment: DA Davidson maintained a “buy” rating, although it reduced its price target from $20 to $18. The revised target still implies substantial potential upside from current trading levels.
  • Neutral Sentiment: Management raised its fiscal 2027 EPS outlook to $0.98-$1.26, compared with consensus of $1.09. The guidance suggests earnings may meet or exceed expectations, but the company’s revenue outlook of $690 million-$710 million is below the roughly $716.8 million analyst forecast.
  • Negative Sentiment: Fiscal third-quarter revenue guidance of $140 million-$150 million also trails the $156.7 million consensus estimate. Investors appear more concerned about the sales outlook than the current-quarter EPS beat, particularly amid choppy furniture demand. Lovesac cuts sales outlook
  • Negative Sentiment: Analysts noted that the tariff refund helped lift quarterly profitability, potentially masking weaker underlying performance. Internet sales declines are also weighing on the company, adding to concerns about demand and the quality of reported earnings. Lovesac internet sales analysis

About Lovesac

(Get Free Report)

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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