Wayfair (NYSE:W) Stock Rating Raised to Strong-Buy at Zacks Research

Key Points

• Zacks Research upgraded Wayfair from “hold” to “strong buy.” Overall, analysts have a “Moderate Buy” consensus rating and an average price target of $125.12.
• Wayfair’s latest quarter beat estimates, with earnings of $0.93 per share versus $0.80 expected and revenue of $3.42 billion, up 9.7% year over year.
• The stock opened at $122.82 on Tuesday, up 10.3%; meanwhile, company insiders have sold 677,070 shares worth about $72.2 million over the past 90 days.

Wayfair (NYSE:W - Get Free Report) was upgraded by Zacks Research from a "hold" rating to a "strong-buy" rating in a research report issued to clients and investors on Tuesday, Zacks reports.

Other analysts have also recently issued research reports about the stock. JPMorgan Chase & Co. upped their price objective on shares of Wayfair from $125.00 to $136.00 and gave the company an "overweight" rating in a research report on Monday. The Goldman Sachs Group reiterated a "neutral" rating on shares of Wayfair in a report on Wednesday, August 5th. Jefferies Financial Group reissued a "hold" rating and issued a $108.00 target price on shares of Wayfair in a research note on Tuesday, August 4th. TD Cowen boosted their target price on Wayfair from $75.00 to $110.00 and gave the company a "hold" rating in a research note on Wednesday, August 5th. Finally, Piper Sandler increased their price target on Wayfair from $133.00 to $135.00 and gave the stock an "overweight" rating in a report on Tuesday, October 20th. Three analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating, ten have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $125.12.

Wayfair Stock Up 10.3%

NYSE:W opened at $122.82 on Tuesday. Wayfair has a 12-month low of $55.60 and a 12-month high of $127.99. The stock's fifty day simple moving average is $105.55 and its 200-day simple moving average is $89.17. The firm has a market capitalization of $16.21 billion, a P/E ratio of -49.93, a P/E/G ratio of 3.84 and a beta of 3.10.

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

Insider Transactions at Wayfair

In other news, Director Steven Conine sold 117,000 shares of the company's stock in a transaction dated Thursday, October 15th. The stock was sold at an average price of $111.25, for a total transaction of $13,016,250.00. Following the completion of the transaction, the director directly owned 105,073 shares of the company's stock, valued at $11,689,371.25. This represents a 52.69% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at 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 dated Thursday, October 15th. The stock was sold at an average price of $111.25, for a total value of $13,016,250.00. Following the transaction, the chief executive officer owned 105,137 shares of the company's stock, valued at approximately $11,696,491.25. The trade was a 52.67% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 677,070 shares of company stock valued at $72,236,934. 18.44% of the stock is currently owned by company insiders.

Institutional Trading of Wayfair

Hedge funds and other institutional investors have recently made changes to their positions in the business. Versant Capital Management Inc boosted its position in Wayfair by 4.1% during the third quarter. Versant Capital Management Inc now owns 3,551 shares of the company's stock valued at $364,000 after purchasing an additional 140 shares during the last quarter. Flynn Zito Capital Management LLC raised its stake in shares of Wayfair by 6.4% during the 1st quarter. Flynn Zito Capital Management LLC now owns 2,775 shares of the company's stock worth $209,000 after purchasing an additional 168 shares in the last quarter. Arizona State Retirement System raised its stake in shares of Wayfair by 0.7% during the 2nd quarter. Arizona State Retirement System now owns 28,514 shares of the company's stock worth $2,635,000 after purchasing an additional 201 shares in the last quarter. Triumph Capital Management boosted its holdings in shares of Wayfair by 6.3% in the 2nd quarter. Triumph Capital Management now owns 3,498 shares of the company's stock valued at $323,000 after buying an additional 207 shares during the last quarter. Finally, Signaturefd LLC boosted its holdings in shares of Wayfair by 5.0% in the 3rd quarter. Signaturefd LLC now owns 5,039 shares of the company's stock valued at $517,000 after buying an additional 239 shares during the last quarter. 89.67% of the stock is currently owned by institutional investors and hedge funds.

Wayfair News Roundup

Here are the key news stories impacting Wayfair this week:

• Positive Sentiment: Wayfair reported Q3 revenue of $3.42 billion, up 9.7% year over year and ahead of estimates. Earnings of $0.93 per share also topped consensus, while coverage described the quarter as the company’s strongest growth period since the pandemic. CNBC report on Wayfair Q3 results
• Positive Sentiment: U.S. revenue rose 11.4% to $3.0 billion, and reports highlighted market-share gains in a sluggish home-furnishings market. Analysts also pointed to stronger profitability, with one report describing the quarter’s margin as Wayfair’s best in six years. Why Wayfair stock is up
• Positive Sentiment: Gordon Haskett upgraded Wayfair from “hold” to “buy” and set a $160 price target, adding to the positive reaction to the earnings report. Gordon Haskett rating information
• Neutral Sentiment: A broad rally in U.S. stocks provided a supportive market backdrop, though Wayfair’s earnings and growth news appear to be the more company-specific drivers. Market rally report
• Negative Sentiment: International revenue declined 2.3% to $380 million, contrasting with U.S. growth and showing that the recovery remains uneven across markets. Wayfair Q3 results release

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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