Lovesac Sees Unusually High Options Volume (NASDAQ:LOVE)

The Lovesac Company (NASDAQ:LOVE) was the recipient of some unusual options trading activity on Monday. Stock traders acquired 3,147 call options on the company. This represents an increase of 485% compared to the typical daily volume of 538 call options.

Institutional Investors Weigh In On Lovesac

Several institutional investors and hedge funds have recently added to or reduced their stakes in LOVE. BNP Paribas Financial Markets increased its position in shares of Lovesac by 130.4% in the second quarter. BNP Paribas Financial Markets now owns 1,938 shares of the company’s stock valued at $35,000 after acquiring an additional 1,097 shares during the last quarter. Numerai GP LLC grew its stake in Lovesac by 10.7% in the third quarter. Numerai GP LLC now owns 11,805 shares of the company’s stock valued at $200,000 after purchasing an additional 1,145 shares in the last quarter. Barclays PLC grew its stake in Lovesac by 7.5% in the fourth quarter. Barclays PLC now owns 28,576 shares of the company’s stock valued at $421,000 after purchasing an additional 1,999 shares in the last quarter. Charles Schwab Investment Management Inc. increased its position in shares of Lovesac by 5.5% during the 4th quarter. Charles Schwab Investment Management Inc. now owns 41,186 shares of the company’s stock worth $607,000 after purchasing an additional 2,165 shares during the last quarter. Finally, MML Investors Services LLC increased its position in shares of Lovesac by 1.0% during the 2nd quarter. MML Investors Services LLC now owns 218,845 shares of the company’s stock worth $3,983,000 after purchasing an additional 2,203 shares during the last quarter. 91.32% of the stock is owned by institutional investors.

Lovesac Price Performance

Shares of LOVE stock traded up $0.70 during midday trading on Monday, hitting $14.23. The company had a trading volume of 165,660 shares, compared to its average volume of 290,839. The stock has a market cap of $207.93 million, a price-to-earnings ratio of 49.03, a PEG ratio of 0.88 and a beta of 2.35. The company’s 50 day simple moving average is $12.78 and its 200 day simple moving average is $14.11. Lovesac has a 52-week low of $10.33 and a 52-week high of $21.90.

Lovesac (NASDAQ:LOVE) last released its quarterly earnings results on Thursday, March 26th. The company reported $2.19 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.00 by $0.19. Lovesac had a net margin of 0.58% and a return on equity of 2.07%. The firm had revenue of $248.05 million for the quarter, compared to the consensus estimate of $242.77 million. During the same quarter in the previous year, the firm posted $2.13 EPS. The firm’s quarterly revenue was up 2.7% on a year-over-year basis. Analysts anticipate that Lovesac will post 0.39 EPS for the current year.

Wall Street Analysts Forecast Growth

Several research firms recently weighed in on LOVE. Weiss Ratings restated a “sell (d)” rating on shares of Lovesac in a research report on Friday. DA Davidson decreased their price target on shares of Lovesac from $24.00 to $18.00 and set a “buy” rating for the company in a research note on Thursday, December 11th. Canaccord Genuity Group dropped their price objective on Lovesac from $30.00 to $24.00 and set a “buy” rating on the stock in a report on Friday, December 12th. Wall Street Zen downgraded Lovesac from a “hold” rating to a “strong sell” rating in a research note on Saturday, December 13th. Finally, Maxim Group set a $26.00 price target on shares of Lovesac in a research note on Friday, December 12th. Five equities research analysts have rated the stock with a Buy rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $26.20.

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.