Arhaus (NASDAQ:ARHS) Reaches New 1-Year High – Time to Buy?

Shares of Arhaus, Inc. (NASDAQ:ARHS) hit a new 52-week high during mid-day trading on Wednesday. The stock traded as high as $13.01 and last traded at $12.83, with a volume of 702,302 shares traded. The stock had previously closed at $12.06.

Arhaus News Summary

Here are the key news stories impacting Arhaus this week:

• Positive Sentiment: Comparable written sales rose 13.9% year over year, indicating solid demand and a potential pipeline for future deliveries. Arhaus also raised its 2026 net revenue outlook to $1.465 billion–$1.485 billion. Arhaus Q3 earnings and outlook
• Positive Sentiment: Revenue increased 6.8% to about $368 million, and comparable delivered sales grew 2.6%, showing continued year-over-year business growth. Arhaus third-quarter results
• Neutral Sentiment: Arhaus is targeting e-commerce penetration of 25% over five years, a longer-term growth opportunity whose impact will depend on execution. Revenue outlook and e-commerce target
• Negative Sentiment: Q3 adjusted EPS of $0.05 missed the $0.08 consensus, while revenue was slightly below estimates. Net income fell 36% to $8 million and adjusted EBITDA dropped 12.3% to $27 million; higher selling, general and administrative costs weighed on margins. Quarterly earnings miss
• Negative Sentiment: CEO John Reed and the 2018 Reed Dynasty Trust reported sizable share sales. The transactions were made under pre-arranged Rule 10b5-1 plans, which may reduce their significance, but could still concern investors. Insider share sale report

Analyst Upgrades and Downgrades

Several equities analysts have recently commented on ARHS shares. Morgan Stanley upped their target price on Arhaus from $9.00 to $10.00 and gave the company an “equal weight” rating in a research report on Friday, August 7th. Piper Sandler raised Arhaus from a “neutral” rating to an “overweight” rating and lifted their price target for the stock from $9.00 to $13.00 in a report on Tuesday, October 20th. Robert W. Baird set a $10.00 price target on Arhaus in a research note on Friday, August 7th. Weiss Ratings upgraded Arhaus from a “hold (c-)” rating to a “hold (c)” rating in a research note on Monday, August 17th. Finally, Wall Street Zen raised Arhaus from a “sell” rating to a “hold” rating in a report on Monday, July 20th. One equities research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat.com, Arhaus presently has a consensus rating of “Moderate Buy” and a consensus target price of $10.78.

Arhaus Stock Up 9.7%

The company has a current ratio of 1.33, a quick ratio of 0.60 and a debt-to-equity ratio of 0.13. The firm has a market cap of $2.01 billion, a price-to-earnings ratio of 28.38, a PEG ratio of 3.73 and a beta of 2.24. The firm’s 50 day simple moving average is $9.80 and its two-hundred day simple moving average is $8.39.

Arhaus (NASDAQ:ARHS) last announced its earnings results on Thursday, November 5th. The company reported $0.05 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.08 by ($0.03). Arhaus had a return on equity of 17.23% and a net margin of 4.91%. The business had revenue of $368.12 million for the quarter, compared to analyst estimates of $370.56 million. During the same quarter in the previous year, the company earned $0.09 EPS. The business’s revenue for the quarter was up 6.8% on a year-over-year basis. On average, equities analysts forecast that Arhaus, Inc. will post 0.54 EPS for the current year.

Insider Buying and Selling

In other Arhaus news, major shareholder 2018 Reed Dynasty Trust sold 77,695 shares of the firm’s stock in a transaction on Wednesday, November 4th. The stock was sold at an average price of $13.03, for a total transaction of $1,012,365.85. Following the transaction, the insider owned 64,927 shares in the company, valued at $845,998.81. This trade represents a 54.48% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO John Reed sold 89,510 shares of the firm’s stock in a transaction on Wednesday, November 4th. The stock was sold at an average price of $13.03, for a total value of $1,166,315.30. Following the transaction, the chief executive officer owned 115,799 shares in the company, valued at approximately $1,508,860.97. This trade represents a 43.60% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 278,896 shares of company stock valued at $3,508,782 over the last 90 days. 1.18% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. Bank of America Corp DE raised its position in shares of Arhaus by 2.1% in the 1st quarter. Bank of America Corp DE now owns 2,337,340 shares of the company’s stock valued at $15,847,000 after buying an additional 49,036 shares in the last quarter. Dimensional Fund Advisors LP lifted its holdings in shares of Arhaus by 18.6% during the 1st quarter. Dimensional Fund Advisors LP now owns 1,179,268 shares of the company’s stock worth $7,994,000 after acquiring an additional 185,208 shares during the period. Punch & Associates Investment Management Inc. lifted its holdings in shares of Arhaus by 2.1% during the 1st quarter. Punch & Associates Investment Management Inc. now owns 1,115,665 shares of the company’s stock worth $7,564,000 after acquiring an additional 22,580 shares during the period. Granite Investment Partners LLC boosted its position in shares of Arhaus by 14.0% during the 1st quarter. Granite Investment Partners LLC now owns 460,322 shares of the company’s stock worth $3,121,000 after acquiring an additional 56,628 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership boosted its position 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 worth $3,112,000 after acquiring an additional 223,692 shares in the last quarter. Institutional investors and hedge funds own 27.88% of the company’s stock.

Arhaus Company Profile

Arhaus, Inc is a lifestyle-focused retailer of luxury and artisan-inspired furniture and home furnishings. The company offers products for living rooms, bedrooms, dining areas, offices and outdoor spaces, along with lighting, rugs, textiles, wall art, mirrors, décor and other home accessories.

Arhaus combines retail showrooms with e-commerce and interior design services, providing products intended to support a coordinated approach to home furnishing. Its collections are developed through collaborations with designers and craftspeople and may incorporate materials such as reclaimed wood, natural stone, upholstery fabrics and other distinctive finishes.

Founded in 1986, Arhaus serves customers primarily in the United States through its stores, online platform and interior design professionals.