Lovesac Co (NASDAQ:LOVE) Sees Significant Increase in Short Interest

Lovesac Co (NASDAQ:LOVE) was the target of a large growth in short interest during the month of September. As of September 30th, there was short interest totalling 2,600,000 shares, a growth of 23.2% from the August 30th total of 2,110,000 shares. Based on an average trading volume of 294,400 shares, the days-to-cover ratio is presently 8.8 days. Currently, 27.5% of the shares of the company are short sold.

Shares of LOVE traded up $1.11 during trading hours on Friday, reaching $17.52. 419,002 shares of the stock traded hands, compared to its average volume of 378,075. Lovesac has a 52-week low of $15.07 and a 52-week high of $46.79. The company’s 50-day moving average price is $18.07 and its two-hundred day moving average price is $27.04.

Lovesac (NASDAQ:LOVE) last released its earnings results on Wednesday, September 11th. The company reported ($0.31) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.51) by $0.20. Lovesac had a negative net margin of 4.06% and a negative return on equity of 9.23%. The company had revenue of $48.10 million for the quarter, compared to analysts’ expectations of $47.78 million. The company’s revenue for the quarter was up 44.9% on a year-over-year basis. On average, equities research analysts predict that Lovesac will post -0.64 earnings per share for the current year.

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Glen Harbor Capital Management LLC bought a new stake in Lovesac in the 2nd quarter valued at $29,000. Elkfork Partners LLC bought a new stake in Lovesac in the 2nd quarter valued at $35,000. BNP Paribas Arbitrage SA increased its holdings in Lovesac by 1,264.4% in the 1st quarter. BNP Paribas Arbitrage SA now owns 1,187 shares of the company’s stock valued at $33,000 after acquiring an additional 1,100 shares during the last quarter. Morgan Stanley increased its holdings in Lovesac by 196.3% in the 2nd quarter. Morgan Stanley now owns 2,948 shares of the company’s stock valued at $92,000 after acquiring an additional 1,953 shares during the last quarter. Finally, FNY Investment Advisers LLC increased its holdings in Lovesac by 13.4% in the 2nd quarter. FNY Investment Advisers LLC now owns 4,094 shares of the company’s stock valued at $127,000 after acquiring an additional 484 shares during the last quarter. Institutional investors own 70.13% of the company’s stock.

A number of research analysts recently weighed in on the stock. Oppenheimer assumed coverage on shares of Lovesac in a research note on Thursday, August 8th. They set an “outperform” rating and a $30.00 target price on the stock. Roth Capital lowered their target price on shares of Lovesac from $47.00 to $37.00 and set a “buy” rating on the stock in a research note on Wednesday, September 4th. Zacks Investment Research upgraded shares of Lovesac from a “hold” rating to a “buy” rating and set a $23.00 target price on the stock in a research note on Tuesday, September 17th. Canaccord Genuity restated a “buy” rating and set a $33.00 target price on shares of Lovesac in a research note on Tuesday, September 17th. Finally, Stifel Nicolaus restated a “buy” rating and set a $32.00 target price on shares of Lovesac in a research note on Wednesday, September 11th. Eight analysts have rated the stock with a buy rating, Lovesac has an average rating of “Buy” and a consensus target price of $34.00.

Lovesac Company Profile

The Lovesac Company designs, manufactures, and sells foam filled furniture, sectional couches, and related accessories. It offers sactionals, such as seats and sides; sacs, including foam beanbag chairs; and accessories comprising drink holders, footsac blankets, decorative pillows, fitted seat tables, and ottomans.

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