DA Davidson Has Lowered Expectations for Lovesac (NASDAQ:LOVE) Stock Price

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

A number of other research firms also recently issued reports on LOVE. Canaccord Genuity Group dropped their price objective on shares of Lovesac from $22.00 to $20.00 and set a “buy” rating on the stock in a report on Thursday. Weiss Ratings reaffirmed a “sell (d)” rating on shares of Lovesac in a report on Wednesday, June 24th. Finally, Roth Capital reiterated a “buy” rating on shares of Lovesac in a research report on Friday. Four analysts have rated the stock with a Buy rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, Lovesac presently has a consensus rating of “Moderate Buy” and an average target price of $21.33.

Lovesac Price Performance

Lovesac stock traded down $0.58 during mid-day trading on Friday, reaching $13.68. 226,453 shares of the stock traded hands, compared to its average volume of 248,111. Lovesac has a 12-month low of $10.33 and a 12-month high of $19.25. The business’s 50-day moving average is $16.87 and its 200-day moving average is $15.47. The stock has a market capitalization of $200.20 million, a PE ratio of 52.79, a price-to-earnings-growth ratio of 0.91 and a beta of 2.03.

Lovesac (NASDAQ:LOVE) last announced its earnings results on Thursday, September 10th. The company reported $0.51 earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.36) by $0.87. The business had revenue of $161.25 million for the quarter, compared to analysts’ expectations of $161.55 million. Lovesac had a return on equity of 1.88% and a net margin of 0.55%.The business’s revenue for the quarter was up .5% on a year-over-year basis. During the same period last year, the firm posted ($0.45) earnings per share. Lovesac has set its Q3 2027 guidance at 0.620-0.830 EPS and its FY 2027 guidance at 0.980-1.260 EPS. Equities analysts anticipate that Lovesac will post 0.5 EPS for the current fiscal year.

Insider Activity at Lovesac

In other news, Director Andrew Heyer bought 30,000 shares of the stock in a transaction that occurred on Thursday, June 18th. The shares were bought at an average price of $14.68 per share, for a total transaction of $440,400.00. Following the purchase, the director owned 293,259 shares in the company, valued at $4,305,042.12. This represents a 11.40% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is available through this link. In the last 90 days, insiders have acquired 33,550 shares of company stock worth $490,146. 7.79% of the stock is owned by company insiders.

Institutional Investors Weigh In On Lovesac

A number of institutional investors have recently bought and sold shares of LOVE. BlackRock Inc. purchased a new position in shares of Lovesac in the second quarter valued at about $20,250,000. AWM Investment Company Inc. bought a new stake in Lovesac during the 2nd quarter valued at approximately $10,188,000. Kanen Wealth Management LLC bought a new position in Lovesac in the 1st quarter worth approximately $8,064,000. Invenomic Capital Management LP bought a new position in shares of Lovesac during the fourth quarter worth $5,350,000. Finally, Senvest Management LLC grew its stake in Lovesac by 36.7% during the first quarter. Senvest Management LLC now owns 1,025,393 shares of the company’s stock valued at $15,145,000 after acquiring an additional 275,252 shares in the last quarter. Hedge funds and other institutional investors own 91.32% of the company’s stock.

Lovesac News Roundup

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.

About Lovesac

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.