Wall Street Zen Upgrades Lovesac (NASDAQ:LOVE) to “Buy”

Lovesac (NASDAQ:LOVE) was upgraded by analysts at Wall Street Zen from a “hold” rating to a “buy” rating in a research note issued on Saturday, Wall Street Zen reports.

LOVE has been the topic of a number of other reports. DA Davidson cut their price target on Lovesac from $20.00 to $18.00 and set a “buy” rating on the stock in a research note on Friday. Weiss Ratings raised Lovesac from a “sell (d)” rating to a “hold (c)” rating in a research note on Thursday. Canaccord Genuity Group dropped their price objective on shares of Lovesac from $22.00 to $20.00 and set a “buy” rating for the company in a report on Thursday. Finally, Roth Capital reiterated a “buy” rating on shares of Lovesac in a research report on Friday. Three equities research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. Based on data from MarketBeat, Lovesac presently has an average rating of “Moderate Buy” and an average price target of $21.33.

Lovesac Stock Performance

Shares of LOVE opened at $13.91 on Friday. Lovesac has a 52 week low of $10.33 and a 52 week high of $19.25. The stock has a market capitalization of $200.58 million, a price-to-earnings ratio of 11.40, a PEG ratio of 0.35 and a beta of 2.03. The stock has a fifty day moving average of $16.80 and a 200-day moving average of $15.48.

Lovesac (NASDAQ:LOVE) last released its quarterly earnings data on Thursday, September 10th. The company reported $0.51 earnings per share for the quarter, beating the consensus estimate of ($0.36) by $0.87. The company had revenue of $161.25 million for the quarter, compared to the consensus estimate of $161.55 million. Lovesac had a return on equity of 2.57% and a net margin of 2.56%.Lovesac’s revenue for the quarter was up .5% on a year-over-year basis. During the same quarter last year, the business posted ($0.45) EPS. Lovesac has set its Q3 2027 guidance at 0.620-0.830 EPS and its FY 2027 guidance at 0.980-1.260 EPS. As a group, equities analysts forecast that Lovesac will post 1.12 EPS for the current year.

Insider Buying and Selling

In related news, Director Andrew Heyer purchased 30,000 shares of Lovesac stock in a transaction on Thursday, June 18th. The shares were purchased at an average price of $14.68 per share, for a total transaction of $440,400.00. Following the transaction, the director owned 293,259 shares of the company’s stock, valued at approximately $4,305,042.12. This represents a 11.40% increase in their position. The purchase was disclosed in a legal filing with the SEC, which is available at this hyperlink. Over the last 90 days, insiders bought 33,550 shares of company stock worth $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 made changes to their positions in the stock. Legal & General Group Plc bought a new stake in Lovesac in the second quarter valued at approximately $25,000. BNP Paribas Financial Markets boosted 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 last quarter. California State Teachers Retirement System boosted its stake in shares of Lovesac by 333.5% in the 2nd quarter. California State Teachers Retirement System now owns 3,121 shares of the company’s stock valued at $52,000 after purchasing an additional 2,401 shares during the last quarter. Ancora Advisors LLC bought a new stake in shares of Lovesac in the 3rd quarter valued at $146,000. Finally, Engineers Gate Manager LP acquired a new stake in shares of Lovesac during the second quarter worth $169,000. 91.32% of the stock is owned by institutional investors and hedge funds.

Lovesac News Roundup

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

Lovesac Company Profile

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.