The Lovesac stock: buy or sell?

LOVE stock price: $28.99 -2.88% At close on June 26th, 2019

Updated on:
June 26th, 2019

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After sliding a bloodcurdling -7.27% yesterday, The Lovesac closed today at $28.99 and fell a horrible -2.88%. On June/17 LOVE climbed an extraordinary 5.29%.

Should I buy The Lovesac stock?

Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. That's why is so important to define your own trading strategy that matches with your character as inversor. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.

Currently, The Lovesac stock doesn't match any of these trading strategies, so our recommendation is not to buy.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This is not a selling recommendation at all, just it's not the best moment to buy if you follow any of these trading strategies.

Is The Lovesac stock a buy?

Financial institutions and banks publish stock ratings everyday. At Stocks2.com, we gathered 2 ratings published for LOVE stock in the last month.

Is LOVE a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-6-21Stifel Nicolausn/aBuy
2019-2-11Canaccord Genuityn/aBuy

The Lovesac stock analysis

Daily outlook

After sliding a bloodcurdling -7.27% yesterday, The Lovesac closed today at $28.99 and fell a horrible -2.88%.

After sliding a bloodcurdling -7.27% yesterday, The Lovesac closed today at $28.99 and fell a horrible -2.88%. On May, LOVE hit a new all time high, pushing higher than on May tops. Check different trading setups that use ATHs as triggers.

LOVE stock chart (daily)

Weekly outlook

The Lovesac plunged a scary -7.53% this week. Early June LOVE climbed a great 5.53% in just one week.

The Lovesac is sliding further to find new supports after lossing the support. Not so far away is the last all-time high The Lovesac marked early May, but since then it dropped a 38.04%. Since mid June, when LOVE stock price broke down the 20-weeks moving avarage line, it slid $-9.17 per share (-24.03%). Late January, SMA10w and SMA20w crossed up triggering a rise of 22.79%.

LOVE stock chart (weekly)

The Lovesac stock price history

The Lovesac stock went public on June 27th, 2018 with a price of $25.011. Since then, LOVE stock surged a 15.90%, with an average of inf% per year. If you had invested right after LOVE's IPO a $1,000 in The Lovesac stock in 2018, it would worth $159.00 today.

1: Adjusted price after possible price splits or reverse-splits.

The Lovesac stock historical price chart

LOVE stock reached all-time highs on May with a price of $46.79.

The Lovesac stock price target is $37.00

Predicting the price evolution of a stock or any financial instrument in a reliable and repeatable way is probably impossible. However, financial institutions invest time and resources to provide the most accurated estimations to help investors to make their decisions. The accuracy of these stock price predictions is not very high, and you should not blindly believe and make decisions only based on what this ratings or price target predictions say. For the last month we found 2 price predictions for LOVE stock:
LOVE stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-6-21Stifel NicolausInitiatesn/a$38.00-
2019-2-11Canaccord GenuityReiterates$30.00$36.0020%
(in average)$30.00$37.0023.0%
Moving in a range from $38.00 and $36.00, the price forecast for The Lovesac stock is $37.00. In average, analysts' outlook on LOVE price forecast is positive, increasing the forecast by a 23.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

Since March, when The Lovesac posted its last earnings report, it remained stable a slightly fine 0.83%. As soon as we get its posted EPS from the earnings report, we will update this report.
LOVE earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q2-n/an/an/a
2017-Q3-n/an/an/a
2017-Q4-n/an/an/a
2018-Q1-n/an/an/a
2018-Q22018-09-13-0.25-0.27n/a
2018-Q32018-09-13-0.26-0.27n/a
2018-Q42018-12-18-0.18-0.15n/a
2019-Q12019-03-190.48n/an/a
2019-Q2-n/an/an/a

Annual financial results

In 2018, The Lovesac annual turnover stayed stable a neutral 0.00% to $101.81 million USD from $101.81 marked in 2017. In line, its income margin (compared to revenues) remained steady to -5.40%, that is $-5.50 million.

To have an updated view of the financial situation of The Lovesac, we have calculated the trailing twelve month (TTM) sales and income figures. TTM values are the sum of the last 4 quarters and aproximate to an annual fiscal report ending in 2019-Q1 that can be compared to 2018 fiscal year results. Annual The Lovesac TTM sales up to January 2019 were $101.70 and income was $-15.14 M USD. When comparing this TTM figures with the last reported annuality, we can esteem The Lovesac business evolution since January 2018: Annual turnover up to January, compared to lastest yearly report, stayed stable a tight -0.10%. Nevertheless, profit margin (net income/revenues) slipped at -5.40%.

LOVE annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2015$74 M-$-8.99 M-12.1%-
2016$74 M-0.01%$-8.99 M-12.1%0.05%
2016$76 M2.96%$-6.87 M-9.0%-23.62%
2017$76 M0.00%$-6.87 M-9.0%0.06%
2017$102 M33.36%$-5.50 M-5.4%-19.99%
2018$102 M0.00%$-5.50 M-5.4%0.03%
TTM $102 M-0.10%$-15.14 M-14.9%175.25%

Quarterly financial results

The Lovesac reported M in revenues for 2019-Q1, a -100.00% less compared to previous quarter. Reported quarter earnings marked M with a profit margin of . Profit margin stayed stable a 0.00% compared to previous quarter when profit margin was -5.97%. When comparing revenues to same quarter last year, The Lovesac sales marked a scary correction and collapsed a -100.00%.
LOVE quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q2$18 M-$-3.34 M-18.9%-
2017-Q3$21 M17.66%$-2.41 M-11.6%-27.66%
2017-Q4$24 M17.57%$-2.18 M-8.9%-9.71%
2018-Q1$39 M60.07%$2.43 M6.2%-211.31%
2018-Q2$27 M-31.43%$-5.68 M-21.2%-334.20%
2018-Q3$33 M24.21%$-6.97 M-21.0%22.63%
2018-Q4$42 M25.37%$-2.49 M-6.0%-64.26%

The Lovesac ownership

When you are planning to buy a stock, it's always worth to check its ownership structure.

Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For The Lovesac, 42.42% of all outstanding shares are owned by its staff.

In case of The Lovesac stock, 64.63% of its shares are held by institutions (mutual funds, pension funds, big banks and other large financial institutions). Bearish positions for LOVE stock account 0.00%, no big difference from last month.

The following table compares ownership indicators for other stocks related to The Lovesac:

LOVE
Market cap$420.9 M
Total shares14.5 M
Float shares9.1 M
  - Institutional holdings (%)64.6%
  - Insider holdings (%)42.4%
Shares in short selling0.0%

The Lovesac summary

Wednesday, June 26th, 2019
Open$29.97
Close$28.99
Day range$28.79 - $30.04
Previous close$29.85
Session gain-2.88%
Average true range$2.78
50d mov avg$35.48
100d mov avg$32.43
200d mov avg$27.02
Daily patternlt02a
Weekly pattern lt01c

The Lovesac performance

Performance as an absolute value is never valid if it's not benchmarked against competitors or related stocks in the industry. In the following table, we compare The Lovesac performance to :
Stock3m6m12m
LOVEThe Lovesac4.24%21.60%39.71%

The Lovesac competitors

Unfortunately, we could not find any public company that could be defined as The Lovesac competitor. This doesn't mean The Lovesac does not have any competitor in the market, it's just we could not detected it.