We did not rank any new stocks this week and therefore are using an upgrade from January 5th, Lovesac (LOVE +N) for the stock of the week. Note that a month ago we downgraded RH (RH -N on Dec. 9th), a much larger and more established competitor but both stocks have had >-60% declines from late 2021. After those declines, the insiders in LOVE are buying, while those in RH are selling.
Lovesac Co – (LOVE, +N, January 5th)
Andrew Heyer (Chair since 2017) purchased 38,000 shares on January 3rd at $22.28, spending $847,000 and increasing his holdings by 20%. Albert Krause (Chief Strategy Officer since 2015, Director since 2021) purchased 10,000 shares on December 21st at $19.17, spending $192,000 and increasing his holdings by 10%.
In both cases, these insiders are making their largest purchases. They also both last bought shares in December 2019/January 2020 around $14 per share and those purchases were very timely. Each insider has made large sales over the past few years putting the size of these purchases into a more modest perspective. Regardless, these are interesting reversals to buying from two insiders who have been timely in the past.
We are ranking the stock +N.