Citigroup Lowers Wayfair (NYSE:W) Price Target to $95.00

Key Points

• Citigroup lowered Wayfair’s price target from $110 to $95 while maintaining a buy rating, implying about 68% upside from the previous close.
• Wayfair’s stock fell to $56.56 in Tuesday trading, well below its 12-month high of $119.98 and under both its 50-day and 200-day moving averages.
• The company recently reported Q1 earnings that met expectations at $0.26 per share, with revenue of $2.93 billion topping estimates and rising 7.4% year over year.

Wayfair (NYSE:W - Get Free Report) had its price objective cut by investment analysts at Citigroup from $110.00 to $95.00 in a research note issued on Tuesday,Benzinga reports. The brokerage currently has a "buy" rating on the stock. Citigroup's price target indicates a potential upside of 67.98% from the stock's previous close.

Several other equities analysts have also recently issued reports on the stock. Wedbush reduced their price target on shares of Wayfair from $100.00 to $85.00 and set a "neutral" rating on the stock in a research report on Friday, February 20th. Piper Sandler reiterated an "overweight" rating and set a $125.00 price target on shares of Wayfair in a research report on Friday, February 20th. Morgan Stanley set a $110.00 price target on shares of Wayfair in a research report on Friday, May 1st. Mizuho reduced their price target on shares of Wayfair from $110.00 to $90.00 and set an "outperform" rating on the stock in a research report on Friday, May 8th. Finally, Robert W. Baird set a $76.00 price target on shares of Wayfair in a research report on Monday, May 4th. One analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, ten have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $99.89.

Wayfair Stock Performance

Shares of NYSE W traded down $2.71 during midday trading on Tuesday, hitting $56.56. 1,334,356 shares of the company traded hands, compared to its average volume of 3,744,732. Wayfair has a 12-month low of $34.46 and a 12-month high of $119.98. The stock has a 50-day moving average price of $72.56 and a 200 day moving average price of $90.01. The firm has a market cap of $7.47 billion, a P/E ratio of -24.11, a P/E/G ratio of 3.32 and a beta of 3.02.

Wayfair (NYSE:W - Get Free Report) last announced its quarterly earnings results on Thursday, April 30th. The company reported $0.26 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.26. Wayfair had a negative net margin of 2.41% and a negative return on equity of 2.20%. The company had revenue of $2.93 billion for the quarter, compared to analysts' expectations of $2.89 billion. During the same quarter in the previous year, the company earned $0.10 earnings per share. Wayfair's quarterly revenue was up 7.4% on a year-over-year basis. As a group, equities analysts expect that Wayfair will post 0.58 earnings per share for the current year.

Insider Buying and Selling

In related news, CEO Niraj Shah sold 6,137 shares of the business's stock in a transaction dated Friday, April 24th. The shares were sold at an average price of $78.62, for a total transaction of $482,490.94. Following the sale, the chief executive officer owned 429,137 shares of the company's stock, valued at $33,738,750.94. The trade was a 1.41% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Steven Conine sold 7,139 shares of the business's stock in a transaction dated Friday, April 24th. The stock was sold at an average price of $78.55, for a total transaction of $560,768.45. Following the sale, the director directly owned 429,073 shares in the company, valued at $33,703,684.15. The trade was a 1.64% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 703,785 shares of company stock valued at $54,004,173 over the last quarter. Corporate insiders own 18.44% of the company's stock.

Institutional Investors Weigh In On Wayfair

Several hedge funds have recently bought and sold shares of the business. Capital World Investors lifted its stake in shares of Wayfair by 0.6% in the fourth quarter. Capital World Investors now owns 13,457,158 shares of the company's stock worth $1,351,237,000 after buying an additional 82,584 shares in the last quarter. Vanguard Group Inc. lifted its stake in shares of Wayfair by 0.8% in the fourth quarter. Vanguard Group Inc. now owns 9,634,757 shares of the company's stock worth $967,426,000 after buying an additional 72,707 shares in the last quarter. Renaissance Technologies LLC lifted its stake in shares of Wayfair by 3.5% in the fourth quarter. Renaissance Technologies LLC now owns 5,407,325 shares of the company's stock worth $542,950,000 after buying an additional 180,558 shares in the last quarter. Janus Henderson Group PLC lifted its stake in shares of Wayfair by 8.3% in the first quarter. Janus Henderson Group PLC now owns 3,866,708 shares of the company's stock worth $290,813,000 after buying an additional 296,233 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership lifted its stake in shares of Wayfair by 0.3% in the fourth quarter. Arrowstreet Capital Limited Partnership now owns 2,825,654 shares of the company's stock worth $283,724,000 after buying an additional 8,598 shares in the last quarter. Institutional investors own 89.67% of the company's stock.

Wayfair Company Profile

Wayfair Inc NYSE: W is an e-commerce company focused on home furnishings and décor. Through its platform, Wayfair offers a broad assortment of furniture, lighting, home textiles, kitchenware and decorative accessories. The company's portfolio includes flagship sites such as Wayfair.com, as well as specialty retail brands like Joss & Main, AllModern, Birch Lane and Perigold, each catering to distinct design styles and price points.

Founded in 2002 by Niraj Shah and Steve Conine under the name CSN Stores, the business rebranded as Wayfair in 2011 and went public in 2014.

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