Royal Bank of Canada Has $9.88 Million Stake in Wayfair Inc. $W

Key Points

• Royal Bank of Canada cut its Wayfair stake by 60.8% in the first quarter, selling 203,835 shares and retaining 131,359 shares valued at approximately $9.88 million.
• Institutional investors and hedge funds collectively own 89.67% of Wayfair, with several funds increasing positions or initiating new stakes during the quarter.
• Wayfair reported a quarterly earnings and revenue beat, with adjusted EPS of $0.95 and revenue of $3.52 billion, up 7.5% year over year. Analysts maintain a generally positive outlook, with a consensus rating of Moderate Buy and an average price target of $118.04.

Royal Bank of Canada decreased its holdings in Wayfair Inc. (NYSE:W - Free Report) by 60.8% in the 1st quarter, according to the company in its most recent 13F filing with the SEC. The fund owned 131,359 shares of the company's stock after selling 203,835 shares during the quarter. Royal Bank of Canada owned approximately 0.10% of Wayfair worth $9,878,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds also recently bought and sold shares of the business. Empowered Funds LLC increased its stake in shares of Wayfair by 67.7% in the first quarter. Empowered Funds LLC now owns 6,829 shares of the company's stock valued at $514,000 after buying an additional 2,758 shares in the last quarter. The Manufacturers Life Insurance Company lifted its position in Wayfair by 18.7% during the 1st quarter. The Manufacturers Life Insurance Company now owns 22,059 shares of the company's stock worth $1,659,000 after buying an additional 3,470 shares in the last quarter. ABS Direct Equity Fund LLC acquired a new position in Wayfair during the 1st quarter worth about $83,000. OMERS ADMINISTRATION Corp bought a new stake in Wayfair during the 1st quarter worth about $1,692,000. Finally, Entropy Technologies LP grew its holdings in Wayfair by 242.7% during the 1st quarter. Entropy Technologies LP now owns 41,874 shares of the company's stock worth $3,149,000 after acquiring an additional 29,656 shares during the last quarter. Institutional investors and hedge funds own 89.67% of the company's stock.

More Wayfair News

Here are the key news stories impacting Wayfair this week:

• Positive Sentiment: Analyst optimism increased. BMO, UBS and Wedbush issued positive forecasts, while Needham raised its price target to $133 and Wells Fargo lifted its target to $130. RBC also expects further appreciation, reinforcing bullish sentiment after the earnings report. BMO Capital Markets Forecasts Strong Price Appreciation for Wayfair Needham Raises Wayfair Price Target Wells Fargo Boosts Wayfair Price Target
• Positive Sentiment: Better-than-expected Q2 results remain the primary catalyst. Wayfair reported adjusted EPS of $0.95 versus a $0.90 consensus estimate and revenue of $3.52 billion versus expectations of $3.47 billion. Revenue increased 7.5% year over year, raising investor expectations that sustained growth and cost controls could move the company closer to consistent profitability. Wayfair Shares Gap Up on Earnings Beat Wayfair Q2 Results Beat Forecasts
• Positive Sentiment: Expansion into physical retail could broaden customer reach. Wayfair plans to open outlet stores in Dublin, Ohio, and North Hills, Pennsylvania, giving the online furniture retailer additional channels to sell inventory and attract shoppers. Wayfair Outlet to Open in Dublin Wayfair Opening North Hills Store
• Neutral Sentiment: Reports indicate affluent consumers are supporting Wayfair’s profit gains despite economic uncertainty, while the company is finding growth in weaker housing markets. This supports demand resilience but may leave the business exposed if higher-income consumer spending slows. Rich Consumers Drive Wayfair Profit Gains
• Negative Sentiment: A nationwide recall involving furniture sold through Wayfair after a toddler was injured creates a potential reputational, customer-safety and liability risk, although the direct financial impact is not yet clear. Nationwide Furniture Recall

Wall Street Analysts Forecast Growth

A number of brokerages have weighed in on W. Benchmark began coverage on shares of Wayfair in a research note on Tuesday, July 7th. They issued a "hold" rating for the company. UBS Group increased their price target on shares of Wayfair from $118.00 to $156.00 and gave the company a "buy" rating in a research note on Wednesday, August 5th. The Goldman Sachs Group reissued a "neutral" rating on shares of Wayfair in a report on Wednesday. JPMorgan Chase & Co. boosted their price objective on shares of Wayfair from $105.00 to $108.00 and gave the stock an "overweight" rating in a research report on Tuesday, July 28th. Finally, Citigroup reduced their price objective on Wayfair from $110.00 to $95.00 and set a "buy" rating on the stock in a report on Tuesday, May 19th. One investment analyst has rated the stock with a Strong Buy rating, seventeen have issued a Buy rating, eleven have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $118.04.

Insiders Place Their Bets

In related news, insider Jon Blotner sold 5,925 shares of the stock in a transaction that occurred on Thursday, July 2nd. The shares were sold at an average price of $96.29, for a total value of $570,518.25. Following the transaction, the insider directly owned 117,344 shares in the company, valued at $11,299,053.76. This represents a 4.81% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. 18.44% of the stock is owned by corporate insiders.

Wayfair Trading Up 0.3%

Shares of NYSE:W opened at $106.91 on Monday. The stock has a market capitalization of $14.11 billion, a P/E ratio of -43.46, a P/E/G ratio of 5.73 and a beta of 2.99. Wayfair Inc. has a 1-year low of $55.60 and a 1-year high of $119.98. The business has a 50-day moving average price of $87.39 and a two-hundred day moving average price of $81.76.

Wayfair (NYSE:W - Get Free Report) last released its earnings results on Tuesday, August 4th. The company reported $0.95 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.90 by $0.05. Wayfair had a negative net margin of 2.49% and a negative return on equity of 3.40%. The company had revenue of $3.52 billion for the quarter, compared to the consensus estimate of $3.47 billion. During the same period in the prior year, the company posted $0.87 EPS. The company's revenue was up 7.5% compared to the same quarter last year. As a group, equities analysts predict that Wayfair Inc. will post 0.62 EPS for the current year.

Wayfair 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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