Wayfair (NYSE:W) Stock Price Target Raised at UBS Group

Key Points

• UBS raised its Wayfair price target to $165 from $156 and reaffirmed a Buy rating, implying 45.57% upside from the stock’s current price.
• Analyst views are broadly positive: Wayfair has a consensus “Moderate Buy” rating and a $128.96 average target, though several firms maintain Hold or Neutral ratings.
• Wayfair beat quarterly expectations, posting $0.93 adjusted earnings per share and $3.42 billion in revenue, up 9.7% year over year; shares nevertheless fell 8.3% on Thursday to $113.35.

Wayfair (NYSE:W - Get Free Report) had its price target upped by analysts at UBS Group from $156.00 to $165.00 in a research note issued on Thursday, Benzinga reports. The firm presently has a "buy" rating on the stock. UBS Group's target price suggests a potential upside of 45.57% from the stock's current price.

Other equities analysts also recently issued reports about the company. BNP Paribas Exane increased their target price on Wayfair from $108.00 to $134.00 and gave the company a "neutral" rating in a research report on Thursday. JPMorgan Chase & Co. raised their target price on Wayfair from $125.00 to $136.00 and gave the stock an "overweight" rating in a research note on Monday. Jefferies Financial Group reissued a "hold" rating and set a $108.00 price objective on shares of Wayfair in a research report on Tuesday, August 4th. Deutsche Bank Aktiengesellschaft restated a "hold" rating and issued a $120.00 target price on shares of Wayfair in a research note on Wednesday, August 5th. Finally, TD Cowen boosted their target price on Wayfair from $110.00 to $114.00 and gave the company a "hold" rating in a research report on Thursday. Three analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating, eleven have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $128.96.

Wayfair Price Performance

W traded down $10.21 during trading on Thursday, hitting $113.35. 2,873,243 shares of the stock traded hands, compared to its average volume of 3,380,593. Wayfair has a twelve month low of $55.60 and a twelve month high of $127.99. The company has a market cap of $14.96 billion, a price-to-earnings ratio of -46.08, a PEG ratio of 3.84 and a beta of 3.10. The business has a 50 day moving average price of $105.74 and a 200 day moving average price of $89.17.

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

Insider Buying and Selling at Wayfair

In related news, insider Jon Blotner sold 500 shares of the firm's stock in a transaction dated Thursday, October 29th. The shares were sold at an average price of $120.00, for a total transaction of $60,000.00. Following the transaction, the insider directly owned 115,385 shares of the company's stock, valued at $13,846,200. This trade represents a 0.43% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, 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 value of $920,000.00. Following the completion of the transaction, the chief technology officer owned 196,698 shares in the company, valued at $22,620,270. The trade was a 3.91% decrease in their position. 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. Over the last 90 days, insiders have sold 677,070 shares of company stock worth $72,236,934. 18.44% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Wayfair

Several large investors have recently made changes to their positions in the business. Janus Henderson Group PLC grew its position in Wayfair by 8.3% during the first quarter. Janus Henderson Group PLC now owns 3,866,708 shares of the company's stock valued at $290,813,000 after buying an additional 296,233 shares during the period. Atreides Management LP increased its holdings in Wayfair by 64.3% during the first quarter. Atreides Management LP now owns 1,430,997 shares of the company's stock worth $107,625,000 after buying an additional 560,133 shares during the last quarter. Dimensional Fund Advisors LP increased its holdings in Wayfair by 46.4% during the first quarter. Dimensional Fund Advisors LP now owns 1,036,531 shares of the company's stock worth $77,923,000 after buying an additional 328,358 shares during the last quarter. Assenagon Asset Management S.A. raised its position in Wayfair by 42.2% in the second quarter. Assenagon Asset Management S.A. now owns 818,591 shares of the company's stock worth $75,654,000 after acquiring an additional 242,791 shares during the period. Finally, Bank of New York Mellon Corp raised its position in Wayfair by 1.8% in the first quarter. Bank of New York Mellon Corp now owns 310,825 shares of the company's stock worth $23,377,000 after acquiring an additional 5,586 shares during the period. 89.67% of the stock is owned by hedge funds and other institutional investors.

Key Stories Impacting Wayfair

Here are the key news stories impacting Wayfair this week:

• Positive Sentiment: Wayfair beat Q3 expectations, reporting adjusted earnings of $0.93 per share versus an approximately $0.80 consensus and revenue of $3.42 billion versus $3.38 billion. Revenue rose 9.7% year over year, with U.S. revenue up 11.4%; the company also posted its strongest growth since the pandemic. Wayfair sales jump as retailer says it's winning share
• Positive Sentiment: Management highlighted U.S. market-share gains and improved advertising efficiency. Its Q4 outlook calls for high-single-digit revenue growth and a 6%–7% adjusted EBITDA margin. Wayfair forecasts Q4 growth and margin
• Positive Sentiment: Analyst sentiment improved: Zacks Research upgraded W to “strong buy,” Gordon Haskett moved to “buy,” and several firms raised price targets, including Needham ($145) and Wells Fargo ($140).
• Neutral Sentiment: Wayfair’s stock had rallied substantially, and several raised targets still carried neutral or hold ratings. That may temper the impact of the upgrades and leave room for profit-taking after the earnings-driven run.
• Negative Sentiment: The Q4 outlook includes heavier holiday advertising spending, which could weigh on profitability, while international revenue declined 2.3% year over year. These concerns may help explain why the stock was lower despite the earnings beat.

Wayfair Company Profile

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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