Wayfair (NYSE:W) Stock Price Expected to Rise, Royal Bank Of Canada Analyst Says

Key Points

• Royal Bank of Canada raised its Wayfair price target from $96 to $128 but kept a “sector perform” rating; the new target implies 12.46% upside from the prior close.
• Wayfair beat quarterly estimates, earning $0.93 per share versus the $0.80 consensus and posting $3.42 billion in revenue, up 9.7% year over year.
• Analyst sentiment overall was positive, with a “Moderate Buy” consensus and an average price target of $128.48, though shares fell $9.74 on Thursday.

Wayfair (NYSE:W - Get Free Report) had its price objective boosted by research analysts at Royal Bank Of Canada from $96.00 to $128.00 in a research note issued on Thursday, Benzinga reports. The firm currently has a "sector perform" rating on the stock. Royal Bank Of Canada's target price points to a potential upside of 12.46% from the company's previous close.

W has been the topic of a number of other research reports. Guggenheim raised their target price on shares of Wayfair from $100.00 to $135.00 and gave the company a "buy" rating in a research report on Wednesday, August 5th. Robert W. Baird increased their target price on shares of Wayfair from $116.00 to $117.00 and gave the company a "neutral" rating in a research report on Thursday, October 8th. UBS Group raised their price target on shares of Wayfair from $118.00 to $156.00 and gave the stock a "buy" rating in a report on Wednesday, August 5th. Morgan Stanley restated an "overweight" rating on shares of Wayfair in a research report on Wednesday, August 5th. Finally, Mizuho set a $132.00 price objective on shares of Wayfair in a research note on Thursday, October 29th. Three research analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating, eleven have given a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $128.48.

Wayfair Stock Performance

Shares of NYSE W traded down $9.74 during trading hours on Thursday, reaching $113.81. 1,885,260 shares of the stock were exchanged, compared to its average volume of 3,375,354. Wayfair has a 52 week low of $55.60 and a 52 week high of $127.99. The firm has a market capitalization of $15.02 billion, a price-to-earnings ratio of -46.09, a P/E/G ratio of 3.84 and a beta of 3.10. The stock's fifty day simple moving average is $105.55 and its 200 day simple moving average is $89.17.

Wayfair (NYSE:W - Get Free Report) last issued its quarterly earnings results on Wednesday, November 4th. The company reported $0.93 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.80 by $0.13. Wayfair had a negative return on equity of 3.40% and a negative net margin of 2.49%. The business had revenue of $3.42 billion for the quarter, compared to the consensus estimate of $3.38 billion. During the same quarter in the prior year, the business posted $0.70 earnings per share. The firm's quarterly revenue was up 9.7% compared to the same quarter last year. Research analysts predict that Wayfair will post 0.97 EPS for the current fiscal year.

Insider Buying and Selling

In other Wayfair news, CTO Fiona Tan sold 8,000 shares of the business's stock in a transaction that occurred on Tuesday, October 20th. The stock was sold at an average price of $115.00, for a total transaction of $920,000.00. Following the completion of the sale, the chief technology officer directly owned 196,698 shares of the company's stock, valued at approximately $22,620,270. The trade was a 3.91% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Niraj Shah sold 117,000 shares of the stock in a transaction on Thursday, October 15th. The shares were sold at an average price of $111.25, for a total value of $13,016,250.00. Following the completion of the sale, the chief executive officer directly owned 105,137 shares of the company's stock, valued at $11,696,491.25. The trade was a 52.67% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 677,070 shares of company stock worth $72,236,934 in the last ninety days. Corporate insiders own 18.44% of the company's stock.

Hedge Funds Weigh In On Wayfair

Several hedge funds have recently modified their holdings of W. Heritage Family Offices LLP bought a new position in shares of Wayfair in the third quarter worth $45,000. Fortitude Family Office LLC raised its stake in shares of Wayfair by 144.7% during the 3rd quarter. Fortitude Family Office LLC now owns 460 shares of the company's stock valued at $47,000 after purchasing an additional 272 shares during the period. Provenance Wealth Advisors LLC bought a new stake in shares of Wayfair during the 3rd quarter valued at $53,000. IFP Advisors Inc lifted its holdings in Wayfair by 79.2% during the 2nd quarter. IFP Advisors Inc now owns 810 shares of the company's stock worth $75,000 after purchasing an additional 358 shares in the last quarter. Finally, Reyes Financial Architecture Inc. purchased a new stake in Wayfair during the 3rd quarter worth about $82,000. Institutional investors own 89.67% of the company's stock.

Key Stories Impacting Wayfair

Here are the key news stories impacting Wayfair this week:

• Positive Sentiment: Wayfair beat Q3 expectations, reporting earnings of $0.93 per share versus the roughly $0.80 consensus and revenue of $3.42 billion versus estimates of $3.38 billion. Revenue rose 9.7% year over year, led by 11.4% growth in the U.S.; reports described it as the company’s strongest growth quarter since the pandemic. Wayfair Q3 results
• Positive Sentiment: Management highlighted market-share gains and forecast high-single-digit Q4 growth with a 6%–7% adjusted EBITDA margin. Loyalty programs, AI initiatives and store expansion were also cited as growth opportunities. Q3 call highlights
• Positive Sentiment: Analyst actions were broadly supportive: Wells Fargo raised its target to $140 and kept an overweight rating; Needham lifted its target to $145 and maintained buy; and Zacks Research upgraded W to strong buy. Wells Fargo ratings Needham ratings
• Neutral Sentiment: BNP Paribas Exane raised its target to $134 but retained a neutral rating, signaling a more cautious view than the other recent analyst calls. BNP Paribas Exane ratings
• Negative Sentiment: International revenue fell 2.3% year over year, contrasting with U.S. strength. After a steep share-price run, elevated expectations may also leave the stock vulnerable to profit-taking if future growth or margin progress disappoints.

About Wayfair

Wayfair Inc is an e-commerce company that sells furniture, home furnishings and related products through digital platforms. Its selection includes furniture, décor, lighting, rugs, mattresses, kitchen and dining products, housewares, home improvement items, outdoor furnishings and other goods for residential and commercial spaces.

The company operates a portfolio of online brands and retail websites, including Wayfair, Joss & Main, AllModern, Birch Lane and Perigold. These brands are designed to serve different customer preferences, price points and areas of the home-furnishings market.

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