Warby Parker (NYSE:WRBY) Shares Down 6.8% - Here's Why

Key Points

• Warby Parker shares fell 6.8% to about $24.89 in light trading, with roughly 275,744 shares changing hands—91% below average volume.
• Analysts remain generally positive, with seven Buy ratings and four Holds producing a “Moderate Buy” consensus and an average price target of $30.08.
• The company’s latest quarter missed expectations, reporting $0.04 in adjusted EPS versus the $0.10 estimate and revenue of $235.5 million versus $238.0 million expected, although revenue grew 9.6% year over year.

Warby Parker Inc. (NYSE:WRBY - Get Free Report)'s stock price fell 6.8% during trading on Monday. The stock traded as low as $25.50 and last traded at $24.8910. Approximately 275,744 shares were traded during trading, a decline of 91% from the average daily volume of 3,064,477 shares. The stock had previously closed at $26.71.

Wall Street Analyst Weigh In

A number of brokerages have issued reports on WRBY. UBS Group increased their price target on Warby Parker from $27.00 to $28.00 and gave the company a "neutral" rating in a research note on Friday, August 7th. Weiss Ratings restated a "hold (c-)" rating on shares of Warby Parker in a report on Friday, August 7th. Roth Capital reaffirmed a "neutral" rating and set a $28.00 target price on shares of Warby Parker in a research note on Wednesday, August 5th. Citizens Jmp dropped their price target on shares of Warby Parker from $30.00 to $29.00 and set a "market outperform" rating on the stock in a research report on Friday, August 7th. Finally, Citigroup reissued a "market outperform" rating on shares of Warby Parker in a report on Thursday, September 17th. Seven equities research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company's stock. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $30.08.

Warby Parker Price Performance

The firm has a market capitalization of $2.70 billion, a PE ratio of 356.64, a P/E/G ratio of 7.24 and a beta of 1.91. The firm has a fifty day moving average price of $25.42 and a 200 day moving average price of $25.15.

Warby Parker (NYSE:WRBY - Get Free Report) last posted its quarterly earnings data on Thursday, August 6th. The company reported $0.04 EPS for the quarter, missing analysts' consensus estimates of $0.10 by ($0.06). The firm had revenue of $235.51 million for the quarter, compared to analysts' expectations of $237.98 million. Warby Parker had a net margin of 0.85% and a return on equity of 3.36%. Warby Parker's quarterly revenue was up 9.6% compared to the same quarter last year. During the same period in the prior year, the company posted ($0.01) earnings per share. On average, sell-side analysts expect that Warby Parker Inc. will post 0.14 EPS for the current year.

Insider Buying and Selling

In other Warby Parker news, CEO Neil Blumenthal sold 217,667 shares of Warby Parker stock in a transaction that occurred on Wednesday, July 1st. The shares were sold at an average price of $29.61, for a total transaction of $6,445,119.87. Following the transaction, the chief executive officer directly owned 31,112 shares in the company, valued at approximately $921,226.32. The trade was a 87.49% 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. Corporate insiders own 16.80% of the company's stock.

Institutional Trading of Warby Parker

Several hedge funds and other institutional investors have recently modified their holdings of WRBY. EverSource Wealth Advisors LLC increased its holdings in shares of Warby Parker by 105.7% in the 1st quarter. EverSource Wealth Advisors LLC now owns 1,310 shares of the company's stock valued at $28,000 after purchasing an additional 673 shares during the period. Essential Partners LLC grew its position in Warby Parker by 44.2% during the first quarter. Essential Partners LLC now owns 2,570 shares of the company's stock valued at $54,000 after purchasing an additional 788 shares in the last quarter. Parallel Advisors LLC increased its stake in Warby Parker by 110.7% in the 1st quarter. Parallel Advisors LLC now owns 1,837 shares of the company's stock valued at $39,000 after buying an additional 965 shares during the period. ProShare Advisors LLC lifted its position in Warby Parker by 6.6% in the 4th quarter. ProShare Advisors LLC now owns 17,917 shares of the company's stock worth $390,000 after buying an additional 1,112 shares in the last quarter. Finally, IFP Advisors Inc boosted its stake in shares of Warby Parker by 7.5% during the 2nd quarter. IFP Advisors Inc now owns 19,453 shares of the company's stock valued at $590,000 after buying an additional 1,355 shares during the period. Institutional investors and hedge funds own 93.24% of the company's stock.

About Warby Parker

Warby Parker Inc is an eyewear company that designs, manufactures and sells prescription glasses, sunglasses and contact lenses. The company serves customers through its website, mobile channels and a network of retail stores, offering products under its Warby Parker brand.

Warby Parker provides eye-care services in addition to eyewear, including in-store eye exams and digital tools such as virtual vision testing, where available. Its retail and online experience is designed to combine prescription fulfillment with access to eye-care professionals and personalized eyewear recommendations.

Founded in 2010 by Neil Blumenthal, Dave Gilboa, Andrew Hunt and Jeffrey Raider, Warby Parker initially became known for its direct-to-consumer model and home try-on program.

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