The Lovesac stock: buy or sell?

LOVE stock price: $20.66 -5.23% At close on September 20th, 2019

Updated on:
September 20th, 2019

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After boosting a super good 5.14% yesterday, The Lovesac closed today at $20.66 and plummed a scary -5.23%.

Should I buy The Lovesac stock?

You can't be a successful trader if you don't follow a methodolgy or system that assist you in choosing companies and the correct market timing. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best time to buy them. At Stocks2.com, we use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.

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?

Everyday, hundreds of stock ratings are posted by financial analysts to indicate a particular stock's attractiveness. At Stocks2.com, we collected 5 ratings published for LOVE stock in the last month.

The general sentiment of these ratings is bullish for LOVE stock, with 5 positive ratings.
Is LOVE a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-9-4Roth Capitaln/aBuy
2019-9-17Canaccord Genuityn/aBuy
2019-9-11Stifel Nicolausn/aBuy
2019-6-21Stifel Nicolausn/aBuy
2019-2-11Canaccord Genuityn/aBuy

The Lovesac stock analysis

Daily outlook

After boosting a super good 5.14% yesterday, The Lovesac closed today at $20.66 and plummed a scary -5.23%.

After boosting a super good 5.14% yesterday, The Lovesac closed today at $20.66 and plummed a scary -5.23%. Since last July when LOVE stock price broke down the SMA200d line, it slid $-8.11 per share (-28.19%). 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

After boosting an exceptional 15.76% in a week last week, The Lovesac closed this week at $20.66 and inched a slightly fine 0.78%. With this, it's been 4 climbing weeks in a row, soaring a 19.85%. By mid August LOVE collapsed a bloodcurdling -5.98% in just one week.

Since price and 40-weeks moving average lines crossed down early July, LOVE fell $-8.47 per share (-29.08%). Trading stocks that are under the 40-weeks (that is, 200-days) moving average line is not recommended by many experts, as it indicates that the stock has not enough institutional support. Far behind is the all-time high The Lovesac marked early May and since then the price is -55.85% below that top.

LOVE stock chart (weekly)

The Lovesac stock price history

The Lovesac stock went public on June 27th, 2018 with a price of $25.001. Since then, LOVE stock declined a -17.40%, with a yearly average of -17.40%.

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 $35.20

Predicting the price evolution of a stock or any financial instrument in a reliable and repeatable way is probably impossible. However, many stock price predictions are published every day by banks, financial institutions and independent analysts. 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. We found 5 price targets for LOVE stock published in the last month:
LOVE stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-9-4Roth CapitalLowers Target$47.00$37.00-21.3%
2019-9-17Canaccord GenuityInitiatesn/a$33.00-
2019-9-11Stifel NicolausReiteratesn/a$32.00-
2019-6-21Stifel NicolausInitiatesn/a$38.00-
2019-2-11Canaccord GenuityReiterates$30.00$36.0020%
(in average)$38.50$35.20-9.0%
Moving in a range from $38.00 and $32.00, the price prediction for LOVE stock is $35.20. In average, analysts' outlook on LOVE price forecast is negative, reducing the prediction by a -9.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

After publishing its last earnings report on March, The Lovesac . As soon as we get its actual EPS from the earnings report, we will extend 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

Compared to 2017, last anual sales report draw a tight move of 0.00% to $101.81 M dollars. When comparing 2018 vs 2017, in the same way, profit margin (that is, the net income divided by revenues) remained stable a 0.00% to -5.40%.

To have an up to date 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 million USD. If we compare this TTM figures with the last reported annuality, we can review The Lovesac business evolution since January 2018: Annual revenues up to January, compared to lastest yearly report, stayed constant a neutral -0.10%. On the other hand, profit margin (net income/sales) fell 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 posted M in revenues for 2019-Q1, a -100.00% decline compared to previous quarter. Reported quarter earnings marked M with a profit margin of . Profit margin stayed steady 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 hair-raising slide and plummed 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 invest in shares of a stock, it's worth to review its ownership structure.

The Lovesac shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 42.42% of all shares.

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.

For a better understanding, the next table shows ownership data compared to other related companies:

LOVE
Market cap$300.2 M
Total shares14.5 M
Float shares9.6 M
  - Institutional holdings (%)64.6%
  - Insider holdings (%)42.4%
Shares in short selling0.0%

The Lovesac summary

Friday, September 20th, 2019
Open$22.11
Close$20.66
Day range$20.42 - $22.41
Previous close$21.80
Session gain-5.23%
Average true range$1.78
50d mov avg$20.01
100d mov avg$27.59
200d mov avg$27.22
Daily pattern
Weekly pattern lt03a

The Lovesac performance

Stocks performance is always measured in comparision to the market or competitors and related stocks in the same industry. We chose as the bechmarking frame for The Lovesac stock.
Stock3m6m12m
LOVEThe Lovesac-34.10%-20.99%-15.15%

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.