Is Lovesac Stock a Good Investment?

Lovesac Investment Advice

LOVE

To provide specific investment advice or recommendations on The Lovesac stock, we recommend investors consider the following general factors when evaluating The Lovesac. This will help you to make an informed decision on whether to include Lovesac in one of your diversified portfolios:

Examine Lovesac's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
Research Lovesac's leadership team and their track record. Good management can help Lovesac navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
Consider the overall health of the Household Durables space and any emerging trends that could impact Lovesac's business and its evolving consumer preferences.
Compare Lovesac's performance and market position to its competitors. Analyze how Lovesac is positioned in terms of product offerings, innovation, and market share.
Check if Lovesac pays a dividend and its dividend yield and payout ratio.
Review what financial analysts are saying about Lovesac's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.

It's important to note that investing in The Lovesac stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if The Lovesac is a good investment.

Sell

Buy

Strong Hold

Lovesac trade recommendations module can be used to check and cross-verify current advice provided by analysts analyzing the firm's potential to grow using all of fundamental, technical, data market data available at the time. To make sure Lovesac is not overpriced, please verify all The Lovesac fundamentals, including its cash per share, number of employees, and the relationship between the revenue and cash flow from operations . Given that Lovesac has a price to earning of 27.01 X, we recommend you to check Lovesac market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your last-minute risk tolerance and investing horizon.

Market Performance	Good	Details
Volatility	Very steady	Details
Hype Condition	Over hyped	Details
Current Valuation	Undervalued	Details
Odds Of Distress	Very Small	Details
Economic Sensitivity	Responds to the market	Details
Investor Sentiment	Impartial	Details
Analyst Consensus	Strong Buy	Details
Financial Strenth (F Score)	Strong	Details
Financial Leverage	Not Rated	Details
Reporting Quality (M-Score)	Possible Manipulator	Details

Examine Lovesac Stock

Researching Lovesac's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 90.0% of the company shares are owned by institutional investors. The book value of Lovesac was now reported as 12.99. The company has Price/Earnings To Growth (PEG) ratio of 0.6. Lovesac had not issued any dividends in recent years.

To determine if Lovesac is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Lovesac's research are outlined below:

	Lovesac appears to be risky and price may revert if volatility continues
	Lovesac is unlikely to experience financial distress in the next 2 years
	Lovesac has a strong financial position based on the latest SEC filings
	Over 90.0% of the company shares are owned by institutional investors
	Latest headline from thelincolnianonline.com: Lovesac Reaches New 1-Year High Time to Buy

Lovesac Quarterly Good Will

144,000

Lovesac uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in The Lovesac. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Lovesac's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.

	26th of March 2024 Upcoming Quarterly Report	View
	5th of June 2024 Next Financial Report	View
	31st of January 2024 Next Fiscal Quarter End	View
	26th of March 2024 Next Fiscal Year End	View
	31st of October 2023 Last Quarter Report	View
	31st of January 2023 Last Financial Announcement	View

Earnings surprises can significantly impact Lovesac's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Lovesac's investors have experienced.

Reported	Fiscal Date	Estimated EPS	Reported EPS	Surprise
2020-04-16	2020-01-31	0.33	0.37	0.04	12
2018-12-18	2018-10-31	-0.2	-0.15	0.05	25
2024-09-12	2024-07-31	-0.44	-0.38	0.06	13
2023-08-31	2023-07-31	-0.13	-0.04	0.09	69
2020-06-09	2020-04-30	-0.67	-0.58	0.09	13
2019-06-10	2019-04-30	-0.56	-0.67	-0.11	19
2019-04-30	2019-01-31	0.51	0.63	0.12	23
2024-06-13	2024-04-30	-0.96	-0.83	0.13	13

Know Lovesac's Top Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Lovesac is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading The Lovesac backward and forwards among themselves. Lovesac's institutional investor refers to the entity that pools money to purchase Lovesac's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.

		Shares
Bank Of New York Mellon Corp	2024-06-30	393.5 K
American Century Companies Inc	2024-09-30	379.8 K
Geode Capital Management, Llc	2024-09-30	336.2 K
Kornitzer Capital Management Inc	2024-09-30	323.1 K
State Street Corp	2024-06-30	294 K
Ameriprise Financial Inc	2024-06-30	269.9 K
Nuveen Asset Management, Llc	2024-06-30	248.6 K
D. E. Shaw & Co Lp	2024-09-30	228.9 K
Morgan Stanley - Brokerage Accounts	2024-06-30	214.2 K
Fmr Inc	2024-09-30	2.3 M
Blackrock Inc	2024-06-30	1.2 M

Note, although Lovesac's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Lovesac's market capitalization trends

The company currently falls under 'Small-Cap' category with a current market capitalization of 577.23 M.

Market Cap

874.75 Million

Lovesac's profitablity analysis

	Last Reported	Projected for Next Year
Return On Tangible Assets	0.05	0.09
Return On Capital Employed	0.08	0.13
Return On Assets	0.05	0.09
Return On Equity	0.11	0.14

The company has Profit Margin (PM) of 0.01 %, which maeans that even a very small decline in it revenue will erase profits resulting in a net loss. This is way below average. Similarly, it shows Operating Margin (OM) of (0.05) %, which suggests for every $100 dollars of sales, it generated a net operating loss of $0.05.

Determining Lovesac's profitability involves analyzing its financial statements and using various financial metrics to determine if Lovesac is a good buy. For example, gross profit margin measures Lovesac's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Lovesac's profitability and make more informed investment decisions.

Please note, the presentation of Lovesac's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Lovesac's management is honest, while the outside auditors are strict and uncompromising. Please utilize our Beneish M Score to check the likelihood of Lovesac's management manipulating its earnings.

Evaluate Lovesac's management efficiency

Lovesac has return on total asset (ROA) of 0.0144 % which means that it generated a profit of $0.0144 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of 0.0503 %, meaning that it created $0.0503 on every $100 dollars invested by stockholders. Lovesac's management efficiency ratios could be used to measure how well Lovesac manages its routine affairs as well as how well it operates its assets and liabilities. The current year's Return On Tangible Assets is expected to grow to 0.09. The current year's Return On Capital Employed is expected to grow to 0.13. At present, Lovesac's Net Tangible Assets are projected to increase significantly based on the last few years of reporting. The current year's Non Current Assets Total is expected to grow to about 281.1 M, whereas Total Current Assets are forecasted to decline to about 124.5 M.

	Last Reported	Projected for Next Year
Book Value Per Share	14.10	7.39
Tangible Book Value Per Share	13.99	7.27
Enterprise Value Over EBITDA	10.33	35.12
Price Book Value Ratio	1.62	7.72
Enterprise Value Multiple	10.33	35.12
Price Fair Value	1.62	7.72
Enterprise Value	754.8 M	792.5 M

The leadership approach at Lovesac's fosters a culture of excellence and accountability. Our analysis examines how this culture influences financial outcomes and stock valuation.

Beta

2.917

Basic technical analysis of Lovesac Stock

As of the 28th of November, Lovesac secures the Risk Adjusted Performance of 0.1385, market risk adjusted performance of 0.452, and Downside Deviation of 2.7. In connection with fundamental indicators, the technical analysis model lets you check existing technical drivers of Lovesac, as well as the relationship between them. Please verify Lovesac variance, as well as the relationship between the value at risk and skewness to decide if The Lovesac is priced some-what accurately, providing market reflects its recent price of 37.06 per share. Given that Lovesac has jensen alpha of 0.5028, we recommend you to check Lovesac's last-minute market performance to make sure the company can sustain itself at a future point.

Lovesac's insider trading activities

Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Lovesac insiders, such as employees or executives, is commonly permitted as long as it does not rely on Lovesac's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Lovesac insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.

		Shawn Nelson over three months ago Disposition of 4873 shares by Shawn Nelson of Lovesac at 23.1 subject to Rule 16b-3
		Krause Albert Jack over three months ago Disposition of 1458 shares by Krause Albert Jack of Lovesac subject to Rule 16b-3
		Grafer John Richard over three months ago Disposition of 4996 shares by Grafer John Richard of Lovesac subject to Rule 16b-3
		Andrew Heyer over six months ago Acquisition by Andrew Heyer of 2408 shares of Lovesac subject to Rule 16b-3
		Andrew Heyer over six months ago Disposition of 456 shares by Andrew Heyer of Lovesac subject to Rule 16b-3
		Satori Capital Llc over a year ago Sale by Satori Capital Llc of 15468 shares of Lovesac
		Siegner Keith R over a year ago Lovesac exotic insider transaction detected
		Satori Capital Llc over a year ago Acquisition or disposition of Lovesac securities by Satori Capital Llc

Lovesac's Outstanding Corporate Bonds

Lovesac issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Lovesac uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Lovesac bonds can be classified according to their maturity, which is the date when The Lovesac has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.

	Boeing Co 2196 Corp Bond US097023DG73	View
	MPLX LP 52 Corp Bond US55336VAL45	View

View All Lovesac Corporate Bonds

Understand Lovesac's technical and predictive indicators

Using predictive indicators to make investment decisions involves analyzing Lovesac's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.

	Risk Adjusted Performance	0.1385
	Market Risk Adjusted Performance	0.452
	Mean Deviation	2.76
	Semi Deviation	2.25
	Downside Deviation	2.7
	Coefficient Of Variation	586.34
	Standard Deviation	4.11
	Variance	16.9
	Information Ratio	0.1388
	Jensen Alpha	0.5028
	Total Risk Alpha	0.0436
	Sortino Ratio	0.2111
	Treynor Ratio	0.442
	Maximum Drawdown	26.74
	Value At Risk	(4.37)
	Potential Upside	7.08
	Downside Variance	7.31
	Semi Variance	5.08
	Expected Short fall	(3.31)
	Skewness	2.19
	Kurtosis	8.95

	Risk Adjusted Performance	0.1385
	Market Risk Adjusted Performance	0.452
	Mean Deviation	2.76
	Semi Deviation	2.25
	Downside Deviation	2.7
	Coefficient Of Variation	586.34
	Standard Deviation	4.11
	Variance	16.9
	Information Ratio	0.1388
	Jensen Alpha	0.5028
	Total Risk Alpha	0.0436
	Sortino Ratio	0.2111
	Treynor Ratio	0.442
	Maximum Drawdown	26.74
	Value At Risk	(4.37)
	Potential Upside	7.08
	Downside Variance	7.31
	Semi Variance	5.08
	Expected Short fall	(3.31)
	Skewness	2.19
	Kurtosis	8.95

Consider Lovesac's intraday indicators

Lovesac intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Lovesac stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.

	Accumulation Distribution	12495.34
	Daily Balance Of Power	(0.03)
	Rate Of Daily Change	1.0
	Day Median Price	37.1
	Day Typical Price	37.09
	Price Action Indicator	(0.06)
	Period Momentum Indicator	(0.04)
	Relative Strength Index	58.96

Lovesac Corporate Filings

F4	19th of November 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities	View Verify
13A	14th of November 2024 The form used by investors holding more than 5% of a company's stock, to report their beneficial ownership pursuant to Rule 13d-1 or Rule 13d-2 under the Securities Exchange Act of 1934	View Verify
13A	12th of November 2024 An amended filing to the original Schedule 13G	View Verify
8K	12th of September 2024 Report filed with the SEC to announce major events that shareholders should know about	View Verify

Lovesac time-series forecasting models is one of many Lovesac's stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary Lovesac's historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.

Lovesac Stock media impact

Far too much social signal, news, headlines, and media speculation about Lovesac that are available to investors today. That information is available publicly through Lovesac media outlets and privately through word of mouth or via Lovesac internal channels. However, regardless of the origin, that massive amount of Lovesac data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.

A primary focus of Lovesac news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Lovesac relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Lovesac's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Lovesac alpha.

Lovesac Sentiment by Major News Outlets

Investor sentiment, mood or attitude towards Lovesac can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.

Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.

Lovesac Corporate Executives

Elected by the shareholders, the Lovesac's board of directors comprises two types of representatives: Lovesac inside directors who are chosen from within the company, and outside directors, selected externally and held independent of Lovesac. The board's role is to monitor Lovesac's management team and ensure that shareholders' interests are well served. Lovesac's inside directors are responsible for reviewing and approving budgets prepared by upper management to implement core corporate initiatives and projects. On the other hand, Lovesac's outside directors are responsible for providing unbiased perspectives on the board's policies.

Keith Siegner

Executive CFO

Profile

When determining whether Lovesac is a strong investment it is important to analyze Lovesac's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Lovesac's future performance. For an informed investment choice regarding Lovesac Stock, refer to the following important reports: