Wayfair (NYSE:W) CTO Sells 7,000 Shares of Company Stock

Key Points

• Wayfair CTO Fiona Tan sold 7,000 shares for about $859,110 at an average price of $122.73 under a pre-arranged Rule 10b5-1 plan. She retained 181,698 shares after the sale.
• Wayfair beat quarterly estimates, reporting adjusted EPS of $0.93 versus $0.80 expected and revenue of $3.42 billion, up 9.7% year over year.
• Analyst sentiment is broadly positive, with a “Moderate Buy” consensus and an average price target of $128.57; the article also notes that heavier holiday advertising spending may weigh on near-term margins.

Wayfair Inc. (NYSE:W - Get Free Report) CTO Fiona Tan sold 7,000 shares of the firm's stock in a transaction dated Thursday, November 5th. The stock was sold at an average price of $122.73, for a total transaction of $859,110.00. Following the transaction, the chief technology officer directly owned 181,698 shares in the company, valued at approximately $22,299,795.54. This represents a 3.71% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Fiona Tan also recently made the following trade(s):

• On Wednesday, November 4th, Fiona Tan sold 8,000 shares of Wayfair stock. The shares were sold at an average price of $125.00, for a total transaction of $1,000,000.00.
• On Tuesday, October 20th, Fiona Tan sold 8,000 shares of Wayfair stock. The stock was sold at an average price of $115.00, for a total transaction of $920,000.00.
• On Thursday, October 1st, Fiona Tan sold 7,000 shares of Wayfair stock. The stock was sold at an average price of $102.18, for a total transaction of $715,260.00.

Wayfair Stock Performance

Shares of NYSE W traded down $1.30 during midday trading on Friday, reaching $112.08. The company's stock had a trading volume of 1,644,049 shares, compared to its average volume of 3,372,484. Wayfair Inc. has a fifty-two week low of $55.60 and a fifty-two week high of $127.99. The business's 50 day moving average price is $105.74 and its two-hundred day moving average price is $89.17. The company has a market cap of $14.79 billion, a P/E ratio of -89.67, a P/E/G ratio of 4.26 and a beta of 3.10.

Wayfair (NYSE:W - Get Free Report) last issued its quarterly earnings results on Wednesday, November 4th. The company reported $0.93 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.80 by $0.13. Wayfair had a negative return on equity of 5.14% and a negative net margin of 1.21%. The business had revenue of $3.42 billion for the quarter, compared to the consensus estimate of $3.38 billion. During the same quarter in the prior year, the business posted $0.70 earnings per share. The firm's quarterly revenue was up 9.7% compared to the same quarter last year. Sell-side analysts forecast that Wayfair Inc. will post 0.97 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

A number of research analysts recently commented on W shares. Sanford C. Bernstein raised their price target on Wayfair from $125.00 to $140.00 and gave the stock an "outperform" rating in a research report on Thursday. Morgan Stanley reaffirmed an "overweight" rating and set a $145.00 price objective (up from $110.00) on shares of Wayfair in a research report on Wednesday, August 5th. Evercore reiterated an "outperform" rating and set a $130.00 price objective on shares of Wayfair in a research note on Wednesday, August 5th. JPMorgan Chase & Co. raised their target price on shares of Wayfair from $125.00 to $136.00 and gave the company an "overweight" rating in a report on Monday. Finally, Gordon Haskett upgraded shares of Wayfair from a "hold" rating to a "buy" rating and set a $160.00 target price for the company in a research report on Wednesday. Three investment analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating, twelve have assigned a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $128.57.

Wayfair News Summary

Here are the key news stories impacting Wayfair this week:

• Positive Sentiment: Wayfair beat Q3 earnings and revenue estimates: adjusted EPS was $0.93 versus $0.80 expected, while revenue rose 9.7% year over year to $3.42 billion. U.S. sales growth and market-share gains, alongside better advertising-cost leverage, supported the results. Wayfair Q3 Earnings Beat on U.S. Growth and Ad Cost Leverage
• Positive Sentiment: Several analysts raised price targets, and some maintained or issued bullish ratings. Needham lifted its target to $145 with a Buy rating, while Wells Fargo raised its target to $140 and kept an Overweight rating. Needham recommendations Wells Fargo recommendations
• Neutral Sentiment: Wayfair forecast high-single-digit Q4 growth and a 6%–7% adjusted EBITDA margin, but analysts’ views remain mixed: Deutsche Bank raised its target to $140 while retaining a Hold rating; RBC raised its target to $128 and kept Sector Perform. Deutsche Bank recommendations RBC recommendations
• Negative Sentiment: Management expects heavier holiday advertising spending in Q4. While intended to support growth, the added expense could limit near-term margin improvement and temper the reaction to the Q3 beat.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of W. Heritage Family Offices LLP bought a new position in shares of Wayfair in the third quarter worth about $45,000. Fortitude Family Office LLC increased its holdings in Wayfair by 144.7% in the third quarter. Fortitude Family Office LLC now owns 460 shares of the company's stock valued at $47,000 after purchasing an additional 272 shares during the period. Provenance Wealth Advisors LLC bought a new stake in shares of Wayfair in the 3rd quarter valued at $53,000. Reyes Financial Architecture Inc. bought a new stake in Wayfair in the third quarter worth approximately $82,000. Finally, IFP Advisors Inc grew its holdings in Wayfair by 79.2% in the second quarter. IFP Advisors Inc now owns 810 shares of the company's stock worth $75,000 after purchasing an additional 358 shares during the period. Institutional investors own 89.67% of the company's stock.

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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