What just happened? The Lovesac Company (NASDAQ:LOVE) stock value has plummeted by nearly -8.36% or (-2.52 points) to $27.63 from its previous close of $30.15. Does this decline mean it the best stock to buy right now? The shares seem to have an active trading volume day with a reported 218764 contracts so far this session. LOVE shares had a relatively better volume day versus average trading capacity of 173.56 thousand shares, but with a 8.76 million float and a -18.49% run over a week, it’s definitely worth keeping an eye on. The one year price forecast for LOVE stock indicates that the average analyst price target is $46.5 per share. This means the stock has a potential increase of 68.3% from where the LOVE share price has been trading recently which is between $29.9 and $35.34. There are some brokerage firms that offer lower targets than the average, with one of them, even setting their price target at $45.
The shorts are climbing into The Lovesac Company (LOVE) stock. The latest set of short interest data was released on 31 May 2019, and the numbers show a rise in short interest in LOVE shares. While short interest still represents only 11.09% of LOVE’s float, the number of shares shorted have risen by 30386. The number of shares shorted advanced to 1001212 shares, up from 970826 shares during the preceding fortnight. With average daily trading volumes at 343898 shares, days to cover decreased to about 4.975125 days. The most recent news story about the stock that appeared in Yahoo Finance‘s news section was titled “Why Lovesac Stock Plummeted Today” and dated June 11, 2019.
Looking at the current readings for The Lovesac Company, the two-week RSI stands at 32.17. This figure suggests that LOVE stock, for now, is neutral, meaning that the shares are stable in terms of price movement. The stochastic readings, on the other hand, based on the current LOVE readings is similarly very revealing as it has a stochastic reading of 28.62% at this stage. This figure means that LOVE share price today is being overbought.
Technical chart claims that The Lovesac Company (LOVE) would settle between $33.69/share to $37.24/share level. However, if the stock price goes below the $28.25 mark, then the market for The Lovesac Company becomes much weaker. If that happens, the stock price might even plunge as low as $26.36 for its downside target. The stock is currently in the red zone of MACD, with the indicator reading -3.09. Traders are always alerted for the move of a stock above or below the zero line due to the fact that the reading is an indicator of the position of the short-term average relative to the long-term average. If the MACD is above the zero line, then the short-term average relative is above that of the long-term average, thus implying an upward momentum. Vice versa is the case if the MACD is below the zero line.
Analysts at DA Davidson, assumed coverage of LOVE assigning Buy rating, according to their opinion released on April 02. Canaccord Genuity, analysts launched coverage of The Lovesac Company (NASDAQ:LOVE) stock with a Buy recommendation, according to their flash note issued to investors on November 26.
LOVE equity has an average rating of 1.5, with the figure leaning towards a bullish end. 4 analysts who tracked the company were contacted by Reuters. Amongst them, 0 rated the stock as a hold while the remaining 4 were split even though not equally. Some analysts rate the stock as a buy or a strong buy while no rated it as a sell. 4 analysts rated The Lovesac Company (NASDAQ:LOVE) as a buy or a strong buy while not a single analyst advised that investors should desist from purchasing the stock or sell them if they already own the company’s stock.
Moving on, LOVE stock price is currently trading at 274.09X forward 12-month Consensus EPS estimates, and its P/S ratio is 2.5 while for the average stock in the same group, the multiple is 1.21.