Arhaus, Inc. (NASDAQ:ARHS) Sees Significant Increase in Short Interest

Arhaus, Inc. (NASDAQ:ARHS) was the target of a large growth in short interest during the month of July. As of July 15th, there was short interest totalling 6,980,000 shares, a growth of 44.5% from the June 30th total of 4,830,000 shares. Approximately 13.8% of the company’s shares are short sold. Based on an average trading volume of 1,290,000 shares, the days-to-cover ratio is currently 5.4 days.

Insiders Place Their Bets

In other Arhaus news, insider Lisa Chi sold 1,500 shares of the firm’s stock in a transaction on Thursday, June 6th. The stock was sold at an average price of $19.14, for a total value of $28,710.00. Following the completion of the sale, the insider now directly owns 68,785 shares of the company’s stock, valued at approximately $1,316,544.90. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. In related news, insider Venkatachalam Nachiappan sold 6,460 shares of the firm’s stock in a transaction dated Wednesday, July 24th. The stock was sold at an average price of $16.11, for a total transaction of $104,070.60. Following the completion of the sale, the insider now directly owns 36,736 shares of the company’s stock, valued at approximately $591,816.96. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Lisa Chi sold 1,500 shares of the firm’s stock in a transaction dated Thursday, June 6th. The stock was sold at an average price of $19.14, for a total value of $28,710.00. Following the sale, the insider now directly owns 68,785 shares of the company’s stock, valued at $1,316,544.90. The disclosure for this sale can be found here. Insiders sold 157,960 shares of company stock valued at $2,978,281 in the last three months. 1.52% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Arhaus

Several institutional investors have recently added to or reduced their stakes in the business. National Bank of Canada FI increased its position in Arhaus by 647.1% during the fourth quarter. National Bank of Canada FI now owns 6,350 shares of the company’s stock worth $74,000 after buying an additional 5,500 shares during the period. Zurcher Kantonalbank Zurich Cantonalbank increased its position in Arhaus by 68.0% during the fourth quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 8,979 shares of the company’s stock worth $106,000 after buying an additional 3,635 shares during the period. Sapient Capital LLC acquired a new position in Arhaus during the fourth quarter worth approximately $118,000. Counterpoint Mutual Funds LLC acquired a new position in Arhaus during the fourth quarter worth approximately $119,000. Finally, Total Clarity Wealth Management Inc. acquired a new position in Arhaus during the fourth quarter worth approximately $161,000. Hedge funds and other institutional investors own 27.88% of the company’s stock.

Analyst Upgrades and Downgrades

A number of brokerages recently issued reports on ARHS. Piper Sandler reissued an “overweight” rating and set a $20.00 price objective (up from $19.00) on shares of Arhaus in a research report on Friday, May 10th. Jefferies Financial Group downgraded Arhaus from a “buy” rating to a “hold” rating and cut their price objective for the stock from $22.00 to $16.00 in a research report on Monday, July 8th. Stifel Nicolaus assumed coverage on Arhaus in a research report on Tuesday, July 9th. They issued a “buy” rating and a $19.50 target price for the company. Robert W. Baird lifted their target price on Arhaus from $16.00 to $18.00 and gave the company an “outperform” rating in a research report on Friday, May 10th. Finally, TD Cowen lifted their target price on Arhaus from $18.00 to $19.00 and gave the company a “buy” rating in a research report on Monday, May 20th. Two research analysts have rated the stock with a hold rating and nine have issued a buy rating to the stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $16.77.

Arhaus Stock Down 4.7 %

Shares of ARHS traded down $0.76 during midday trading on Monday, hitting $15.58. The company had a trading volume of 784,950 shares, compared to its average volume of 1,198,763. The company’s 50-day simple moving average is $17.09 and its 200-day simple moving average is $14.93. The company has a debt-to-equity ratio of 0.19, a quick ratio of 0.61 and a current ratio of 1.21. The firm has a market capitalization of $2.19 billion, a P/E ratio of 21.50, a P/E/G ratio of 2.53 and a beta of 2.58. Arhaus has a 1 year low of $7.56 and a 1 year high of $19.81.

Arhaus (NASDAQ:ARHS) last posted its earnings results on Thursday, May 9th. The company reported $0.11 earnings per share for the quarter, topping the consensus estimate of $0.02 by $0.09. The firm had revenue of $295.16 million during the quarter, compared to analysts’ expectations of $263.23 million. Arhaus had a return on equity of 34.83% and a net margin of 8.30%. As a group, sell-side analysts expect that Arhaus will post 0.76 EPS for the current year.

Arhaus Company Profile

Arhaus, Inc operates as a lifestyle brand and premium retailer in the home furnishings market in the United States. It provides merchandise assortments across various categories, including furniture, lighting, textiles, décor, and outdoor. The company's furniture products comprise bedroom, dining room, living room, and home office furnishings, which includes sofas, dining tables and chairs, accent chairs, console and coffee tables, beds, headboards, dressers, desks, bookcases, modular storage, and other items; and outdoor products, such as outdoor dining tables, chairs, chaises and other furniture, lighting, textiles, décor, umbrellas, and fire pits.