Stead has linked up with Chris Coleman's men after being left out at Portman Road recently and a deal is already in place for him to make the move permanent in the summer should both parties agree.
He told his new club's official website: "It feels very good to have signed for Coventry City because it's a new challenge for me, I'm looking forward to getting some games, doing well and helping in any way I can for the final push of the season.
"It's a huge confidence boost for me that a club looking to go places looks to me to help them on their way. Everything at the club has the make up to go places and I'm glad that I am seen as part of that even if it is for the short term."
