Arhaus Inc. (NASDAQ: ARHS) stock jumped 7.74% on Monday to $13.92 against a previous-day closing price of $12.92. With 2.33 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.61 million shares. During the session, the Home Improvement Retail company that operates in wider Consumer Cyclical sector, reached to the highest price of $14.10 whereas the lowest price it dropped to was $12.93. The 52-week range on ARHS shows that it touched its highest point at $13.41 and its lowest point at $4.23 during that stretch. It currently has a 1-year price target of $14.06.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of ARHS was up-trending over the past week, with a rise of 10.48%, but this was up by 45.61% over a month. Three-month performance surged to 87.35% while six-month performance rose 152.17%. The stock gained 52.80% in the past year, while it has gained 42.77% so far this year. A look at the trailing 12-month EPS for ARHS yields 0.56 with Next year EPS estimates of 0.89. For the next quarter, that number is 0.20. This implies an EPS growth rate of 109.90% for this year and 0.91% for next year.
Float and Shares Shorts:
At present, 138.49 million ARHS shares are outstanding with a float of 50.77 million shares on hand for trading. On Oct 13, 2022, short shares totaled 2.85 million, which was 2.04% higher than short shares on Sep 14, 2022. In addition to Mr. John P. Reed as the firm’s Founder, Chairman, Pres & CEO, Ms. Dawn Phillipson serves as its Chief Financial Officer.
Through their ownership of 79.37% of ARHS’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 5.67% of ARHS, in contrast to 3.24% held by mutual funds. Shares owned by individuals account for 17.48%. As the largest shareholder in ARHS with 3.47% of the stake, The Vanguard Group, Inc. holds 1,839,644 shares worth 1,839,644. A second-largest stockholder of ARHS, No Street GP LP, holds 1,600,000 shares, controlling over 3.02% of the firm’s shares. Summit Creek Advisors LLC is the third largest shareholder in ARHS, holding 1,220,213 shares or 2.31% stake. With a 1.17% stake in ARHS, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 621,273 shares are owned by the mutual fund manager. The Vanguard Small Cap Index Fund, which owns about 1.03% of ARHS stock, is the second-largest Mutual Fund holder. It holds 546,121 shares valued at 5.32 million. Vanguard Small Cap Growth Index F holds 0.60% of the stake in ARHS, owning 319,743 shares worth 3.12 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for ARHS since 9 analysts follow the stock currently. There are 6 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 1 believe that the stock is worth HOLDING, 2 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With ARHS analysts setting a high price target of $16.50 and a low target of $12.00, the average target price over the next 12 months is $14.06. Based on these targets, ARHS could surge 18.53% to reach the target high and fall by -13.79% to reach the target low. Reaching the average price target will result in a growth of 1.01% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. ARHS will report FY 2022 earnings on 03/27/2024. Analysts have provided yearly estimates in a range of $0.94 being high and $0.85 being low. For ARHS, this leads to a yearly average estimate of $0.88. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Arhaus Inc. surprised analysts by $0.13 when it reported $0.27 EPS against a consensus estimate of $0.14. The surprise factor in the prior quarter was $0.16. Based on analyst estimates, the high estimate for the next quarter is $0.26 and the low estimate is $0.18. The average estimate for the next quarter is thus $0.20.
Summary of Insider Activity:
Insiders traded ARHS stock several times over the past three months with 0 Buys and 0 Sells. In these transactions, 0 shares were bought while 0 shares were sold. The number of buy transactions has increased to 14 while that of sell transactions has risen to 10 over the past year. The total number of shares bought during that period was 185,500 while 206,195 shares were sold.