DA Davidson Cuts Lovesac (NASDAQ:LOVE) Price Target to $18.00

Lovesac (NASDAQ:LOVE) had its target price dropped by analysts at DA Davidson from $20.00 to $18.00 in a research report issued to clients and investors on Friday, Benzinga reports. The firm currently has a “buy” rating on the stock. DA Davidson’s target price indicates a potential upside of 31.63% from the stock’s current price.

Several other equities research analysts also recently commented on the stock. Roth Capital reaffirmed a “buy” rating on shares of Lovesac in a report on Friday. Canaccord Genuity Group dropped their price target on shares of Lovesac from $22.00 to $20.00 and set a “buy” rating on the stock in a research note on Thursday. Finally, Weiss Ratings reaffirmed a “sell (d)” rating on shares of Lovesac in a report on Wednesday, June 24th. Four research analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, Lovesac has an average rating of “Moderate Buy” and an average price target of $21.33.

Lovesac Stock Down 4.1%

Lovesac stock traded down $0.58 during trading on Friday, hitting $13.68. The stock had a trading volume of 226,453 shares, compared to its average volume of 248,111. The stock’s 50 day moving average is $16.87 and its two-hundred day moving average is $15.47. Lovesac has a 1 year low of $10.33 and a 1 year high of $19.25. The stock has a market cap of $200.20 million, a price-to-earnings ratio of 52.79, a price-to-earnings-growth ratio of 0.91 and a beta of 2.03.

Lovesac (NASDAQ:LOVE) last released its earnings results on Thursday, September 10th. The company reported $0.51 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.36) by $0.87. Lovesac had a return on equity of 1.88% and a net margin of 0.55%.The business had revenue of $161.25 million during the quarter, compared to the consensus estimate of $161.55 million. During the same period last year, the business posted ($0.45) earnings per share. The business’s revenue for the quarter was up .5% on a year-over-year basis. 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 research analysts anticipate that Lovesac will post 0.5 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, Director Andrew Heyer acquired 30,000 shares of Lovesac stock in a transaction on Thursday, June 18th. The shares were acquired at an average cost of $14.68 per share, with a total value of $440,400.00. Following the transaction, the director owned 293,259 shares in the company, valued at $4,305,042.12. This trade represents a 11.40% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Insiders have acquired a total of 33,550 shares of company stock valued at $490,146 in the last quarter. Insiders own 7.79% of the company’s stock.

Hedge Funds Weigh In On Lovesac

Several hedge funds and other institutional investors have recently modified their holdings of the stock. AWM Investment Company Inc. bought a new stake in shares of Lovesac during the second quarter valued at approximately $10,188,000. GSA Capital Partners LLP purchased a new position in Lovesac in the 2nd quarter worth approximately $1,149,000. Man Group plc bought a new position in shares of Lovesac during the second quarter valued at $1,594,000. BlackRock Inc. bought a new position in Lovesac during the 2nd quarter valued at about $20,250,000. Finally, 1492 Capital Management LLC purchased a new position in shares of Lovesac during the first quarter valued at approximately $1,206,000. Hedge funds and other institutional investors own 91.32% of the company’s stock.

Key Headlines Impacting Lovesac

Here are the key news stories impacting Lovesac this week:

• Positive Sentiment: Lovesac reported second-quarter fiscal 2027 revenue of approximately $161.2 million, broadly in line with estimates, while EPS of $0.51 significantly exceeded the consensus loss expectation. Revenue increased slightly year over year, and management said record non-fourth-quarter sales and planned product launches support the company’s growth strategy. Lovesac fiscal 2027 second-quarter results
• Positive Sentiment: The company raised or maintained its fiscal 2027 EPS outlook at $0.98-$1.26, compared with analyst expectations of approximately $1.09. Its third-quarter EPS outlook of $0.62-$0.83 also exceeds the current consensus, suggesting management expects improved profitability in the second half. Lovesac raises fiscal 2027 EPS outlook
• Neutral Sentiment: Management attributed part of the quarterly earnings improvement to a tariff-related refund. While this benefited reported results, investors may view it as a temporary gain rather than evidence of a comparable improvement in the core business. Lovesac tariff refund and underlying weakness
• Negative Sentiment: Fiscal 2027 revenue guidance of $690 million-$710 million is below the approximately $716.8 million analyst consensus. Third-quarter revenue guidance of $140 million-$150 million likewise trails estimates of about $156.7 million, pointing to continued pressure from choppy furniture demand. Lovesac cuts sales outlook
• Negative Sentiment: The market reaction indicates that investors prioritized the below-consensus sales outlook and the temporary nature of the tariff benefit over the EPS beat. The stock remains below its 50-day moving average, reinforcing the cautious sentiment surrounding near-term growth.

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.