Arhaus (NASDAQ:ARHS) Shares Gap Down – Should You Sell?

Arhaus, Inc. (NASDAQ:ARHS)’s stock price gapped down prior to trading on Wednesday . The stock had previously closed at $7.45, but opened at $7.01. Arhaus shares last traded at $7.1670, with a volume of 69,891 shares changing hands.

Analyst Upgrades and Downgrades

Several research analysts have recently issued reports on the company. Weiss Ratings reiterated a “hold (c)” rating on shares of Arhaus in a report on Monday, December 29th. Jefferies Financial Group reaffirmed a “hold” rating and issued a $9.50 target price on shares of Arhaus in a research report on Thursday, February 26th. Stifel Nicolaus set a $12.00 price target on shares of Arhaus in a research note on Monday, March 2nd. Morgan Stanley boosted their target price on Arhaus from $10.50 to $12.00 and gave the company an “equal weight” rating in a report on Thursday, January 15th. Finally, Telsey Advisory Group lifted their price target on Arhaus from $12.00 to $13.00 and gave the stock a “market perform” rating in a research report on Thursday, February 26th. Three investment analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the company’s stock. According to data from MarketBeat, the stock has an average rating of “Hold” and an average target price of $11.00.

Arhaus Stock Down 3.4%

The firm has a market capitalization of $1.01 billion, a PE ratio of 15.02, a PEG ratio of 1.52 and a beta of 2.54. The business’s fifty day moving average price is $9.46 and its 200 day moving average price is $10.20. The company has a quick ratio of 0.62, a current ratio of 1.37 and a debt-to-equity ratio of 0.13.

Arhaus (NASDAQ:ARHS) last released its quarterly earnings results on Thursday, February 26th. The company reported $0.11 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.10 by $0.01. The firm had revenue of $364.85 million for the quarter, compared to analyst estimates of $351.53 million. Arhaus had a return on equity of 17.32% and a net margin of 4.88%.The business’s revenue was up 5.1% on a year-over-year basis. During the same quarter last year, the company posted $0.15 earnings per share. On average, equities research analysts forecast that Arhaus, Inc. will post 0.46 earnings per share for the current fiscal year.

Arhaus Dividend Announcement

The company also recently declared a special dividend, which will be paid on Tuesday, March 31st. Stockholders of record on Wednesday, March 18th will be paid a dividend of $0.35 per share. The ex-dividend date is Wednesday, March 18th.

Institutional Investors Weigh In On Arhaus

Institutional investors have recently added to or reduced their stakes in the business. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its holdings in Arhaus by 4.5% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 30,478 shares of the company’s stock worth $265,000 after acquiring an additional 1,326 shares during the period. Millennium Management LLC grew its stake in shares of Arhaus by 83.8% during the 1st quarter. Millennium Management LLC now owns 696,690 shares of the company’s stock worth $6,061,000 after purchasing an additional 317,631 shares during the period. Goldman Sachs Group Inc. grew its stake in shares of Arhaus by 24.1% during the 1st quarter. Goldman Sachs Group Inc. now owns 620,508 shares of the company’s stock worth $5,398,000 after purchasing an additional 120,314 shares during the period. Geode Capital Management LLC increased its holdings in shares of Arhaus by 0.3% in the 2nd quarter. Geode Capital Management LLC now owns 1,254,147 shares of the company’s stock valued at $10,875,000 after purchasing an additional 3,146 shares in the last quarter. Finally, Intech Investment Management LLC increased its holdings in Arhaus by 13.4% in the second quarter. Intech Investment Management LLC now owns 26,819 shares of the company’s stock valued at $233,000 after buying an additional 3,178 shares in the last quarter. Hedge funds and other institutional investors own 27.88% of the company’s stock.

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.