Warby Parker Inc. (NYSE:WRBY) Receives Consensus Rating of "Moderate Buy" from Brokerages

Key Points

• Warby Parker has a “Moderate Buy” consensus rating from 11 brokerages, with seven buys and four holds. The average 12-month price target is $30.18, above the reported opening price of $23.31.
• The company’s latest quarterly results fell short of expectations, posting EPS of $0.04 versus the $0.10 consensus and revenue of $235.51 million versus $237.98 million expected. Revenue nevertheless increased 9.6% year over year.
• Institutional investors own 93.24% of the stock, while insiders sold 278,167 shares worth about $8.2 million over the past three months. Warby Parker has a $2.52 billion market capitalization and trades at a high price-to-earnings ratio of 333.

Warby Parker Inc. (NYSE:WRBY - Get Free Report) has been given a consensus recommendation of "Moderate Buy" by the eleven brokerages that are presently covering the stock, Marketbeat Ratings reports. Four investment analysts have rated the stock with a hold rating and seven have issued a buy rating on the company. The average 1 year target price among brokerages that have covered the stock in the last year is $30.1818.

Several equities research analysts recently weighed in on the stock. Bank of America started coverage on shares of Warby Parker in a research report on Monday, June 29th. They set a "buy" rating and a $33.00 price target for the company. UBS Group increased their price objective on Warby Parker from $27.00 to $28.00 and gave the company a "neutral" rating in a research report on Friday, August 7th. Citigroup reiterated a "market outperform" rating on shares of Warby Parker in a report on Friday, May 22nd. Roth Capital reissued a "neutral" rating and issued a $28.00 target price on shares of Warby Parker in a research report on Wednesday, August 5th. Finally, Piper Sandler restated an "overweight" rating on shares of Warby Parker in a research note on Tuesday, May 19th.

Warby Parker Stock Performance

Shares of WRBY stock opened at $23.31 on Friday. Warby Parker has a one year low of $14.96 and a one year high of $31.00. The company's 50-day moving average is $26.78 and its 200 day moving average is $25.14. The company has a market capitalization of $2.52 billion, a price-to-earnings ratio of 333.00, a price-to-earnings-growth ratio of 6.48 and a beta of 1.91.

Warby Parker (NYSE:WRBY - Get Free Report) last issued its earnings results on Thursday, August 6th. The company reported $0.04 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.10 by ($0.06). The firm had revenue of $235.51 million during the quarter, compared to analysts' expectations of $237.98 million. Warby Parker had a return on equity of 3.36% and a net margin of 0.85%.The firm's quarterly revenue was up 9.6% on a year-over-year basis. During the same period last year, the firm posted ($0.01) earnings per share. As a group, research analysts predict that Warby Parker will post 0.14 earnings per share for the current fiscal year.

Insider Transactions at Warby Parker

In other Warby Parker news, CEO Neil Blumenthal sold 9,200 shares of Warby Parker stock in a transaction that occurred on Monday, July 6th. The shares were sold at an average price of $29.99, for a total value of $275,908.00. Following the completion of the sale, the chief executive officer owned 31,112 shares of the company's stock, valued at approximately $933,048.88. The trade was a 22.82% decrease in their position. The transaction 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, Director Youngme E. Moon sold 10,000 shares of Warby Parker stock in a transaction on Friday, June 12th. The stock was sold at an average price of $26.53, for a total value of $265,300.00. Following the completion of the sale, the director directly owned 26,061 shares of the company's stock, valued at $691,398.33. The trade was a 27.73% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 278,167 shares of company stock worth $8,206,480 over the last three months. 16.80% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the business. California State Teachers Retirement System grew its holdings in Warby Parker by 2,696.1% during the second quarter. California State Teachers Retirement System now owns 3,168,952 shares of the company's stock valued at $104,448,000 after purchasing an additional 3,055,618 shares during the period. JPMorgan Chase & Co. grew its position in shares of Warby Parker by 32.5% during the fourth quarter. JPMorgan Chase & Co. now owns 9,679,067 shares of the company's stock worth $210,907,000 after purchasing an additional 2,375,726 shares in the last quarter. Fuller & Thaler Asset Management Inc. purchased a new stake in shares of Warby Parker during the fourth quarter worth about $46,484,000. SRS Investment Management LLC bought a new position in shares of Warby Parker during the fourth quarter worth $31,277,000. Finally, Ranger Investment Management L.P. bought a new position in Warby Parker during the second quarter valued at approximately $30,949,000. Hedge funds and other institutional investors own 93.24% of the company's stock.

Warby Parker Company Profile

Warby Parker, Inc NYSE: WRBY is a U.S.-based eyewear company that designs, manufactures and sells prescription glasses, sunglasses and contact lenses through a direct-to-consumer model. Since its founding, the company has combined online and brick-and-mortar channels to streamline the customer experience, offering features such as virtual try-on technology and a home try-on program that allows consumers to sample frames before purchase.

Established in 2010 by Wharton graduates Neil Blumenthal, Dave Gilboa, Andrew Hunt and Jeffrey Raider, Warby Parker set out to disrupt the traditional optical market by controlling the entire supply chain—from frame design and lens production to warehousing and distribution.

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