Short Interest in Arhaus, Inc. (NASDAQ:ARHS) Expands By 13.3%

Arhaus, Inc. (NASDAQ:ARHS) saw a significant growth in short interest in the month of August. As of August 15th, there was short interest totalling 8,450,000 shares, a growth of 13.3% from the July 31st total of 7,460,000 shares. Based on an average daily volume of 1,480,000 shares, the short-interest ratio is currently 5.7 days. Currently, 16.7% of the shares of the company are sold short.

Analysts Set New Price Targets

Several brokerages have recently weighed in on ARHS. TD Cowen reduced their target price on Arhaus from $19.00 to $14.00 and set a “buy” rating for the company in a research note on Friday, August 9th. Piper Sandler reaffirmed an “overweight” rating and set a $20.00 price objective (up from $19.00) on shares of Arhaus in a report on Friday, May 10th. Barclays cut their target price on shares of Arhaus from $17.00 to $15.00 and set an “overweight” rating for the company in a research note on Friday, August 9th. Telsey Advisory Group reaffirmed an “outperform” rating and issued a $15.00 price target on shares of Arhaus in a research note on Monday, August 12th. Finally, Jefferies Financial Group cut Arhaus from a “buy” rating to a “hold” rating and lowered their price objective for the stock from $22.00 to $16.00 in a report on Monday, July 8th. Two equities research analysts have rated the stock with a hold rating and eight have assigned a buy rating to the stock. According to MarketBeat, Arhaus currently has a consensus rating of “Moderate Buy” and an average target price of $15.00.

Arhaus Stock Performance

ARHS stock remained flat at $12.31 during mid-day trading on Monday. 647,300 shares of the company’s stock were exchanged, compared to its average volume of 1,262,600. The company has a debt-to-equity ratio of 0.17, a quick ratio of 0.55 and a current ratio of 1.25. The company’s fifty day moving average price is $14.36 and its 200 day moving average price is $15.11. Arhaus has a 12 month low of $7.56 and a 12 month high of $19.81. The stock has a market cap of $1.73 billion, a PE ratio of 16.20, a PEG ratio of 14.05 and a beta of 2.57.

Arhaus (NASDAQ:ARHS) last posted its quarterly earnings results on Thursday, August 8th. The company reported $0.16 EPS for the quarter, beating the consensus estimate of $0.12 by $0.04. The firm had revenue of $309.80 million during the quarter, compared to analysts’ expectations of $314.28 million. Arhaus had a return on equity of 28.45% and a net margin of 6.92%. The business’s revenue for the quarter was down 1.0% on a year-over-year basis. During the same quarter last year, the firm earned $0.29 earnings per share. On average, analysts forecast that Arhaus will post 0.48 earnings per share for the current fiscal year.

Insider Activity at Arhaus

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

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of ARHS. Wasatch Advisors LP raised its stake in Arhaus by 147.1% during the first quarter. Wasatch Advisors LP now owns 8,792,207 shares of the company’s stock worth $135,312,000 after purchasing an additional 5,233,776 shares during the period. Vanguard Group Inc. raised its position in shares of Arhaus by 11.8% during the 1st quarter. Vanguard Group Inc. now owns 4,387,126 shares of the company’s stock valued at $67,518,000 after buying an additional 463,749 shares during the period. American Century Companies Inc. lifted its holdings in Arhaus by 120.6% in the second quarter. American Century Companies Inc. now owns 4,060,484 shares of the company’s stock valued at $68,785,000 after acquiring an additional 2,219,554 shares during the last quarter. Hood River Capital Management LLC grew its position in Arhaus by 0.6% in the first quarter. Hood River Capital Management LLC now owns 1,547,296 shares of the company’s stock worth $23,813,000 after acquiring an additional 8,824 shares during the period. Finally, Summit Creek Advisors LLC increased its stake in Arhaus by 0.7% during the first quarter. Summit Creek Advisors LLC now owns 1,261,837 shares of the company’s stock worth $19,420,000 after acquiring an additional 8,461 shares during the last quarter. Hedge funds and other institutional investors own 27.88% of the company’s stock.

About Arhaus

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.