Warby Parker (NYSE:WRBY) Shares Gap Up - Here's What Happened

Key Points

• Warby Parker shares gapped higher, opening at $25.93 after a prior close of $21.29; the stock was last trading at $25.745 in the report.
• Analysts collectively rated the stock “Moderate Buy,” with a consensus price target of $30. Recent views ranged from a sell rating to strong buy.
• Quarterly results fell short on earnings, with EPS of $0.04 versus the $0.09 consensus. Revenue of $244.74 million was roughly in line with estimates and rose 10.4% year over year.

Shares of Warby Parker Inc. (NYSE:WRBY - Get Free Report) gapped up prior to trading on Thursday. The stock had previously closed at $21.29, but opened at $25.93. Warby Parker shares last traded at $25.7450, with a volume of 1,320,903 shares changing hands.

Wall Street Analyst Weigh In

Several research analysts recently issued reports on WRBY shares. Weiss Ratings downgraded Warby Parker from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Friday, October 23rd. Citizens Jmp lowered their target price on Warby Parker from $30.00 to $29.00 and set a "market outperform" rating on the stock in a report on Friday, August 7th. TD Cowen started coverage on Warby Parker in a research report on Friday, October 30th. They set a "strong-buy" rating for the company. UBS Group boosted their price target on Warby Parker from $27.00 to $28.00 and gave the stock a "neutral" rating in a report on Friday, August 7th. Finally, BTIG Research restated a "buy" rating on shares of Warby Parker in a research report on Tuesday, October 27th. One equities research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, Warby Parker has an average rating of "Moderate Buy" and a consensus price target of $30.00.

Warby Parker Trading Up 26.5%

The business's 50-day simple moving average is $24.90 and its two-hundred day simple moving average is $25.14. The company has a market capitalization of $2.91 billion, a PE ratio of 383.69, a PEG ratio of 5.95 and a beta of 1.95.

Warby Parker (NYSE:WRBY - Get Free Report) last posted its quarterly earnings results on Thursday, November 5th. The company reported $0.04 EPS for the quarter, missing analysts' consensus estimates of $0.09 by ($0.05). The firm had revenue of $244.74 million during the quarter, compared to analyst estimates of $244.92 million. Warby Parker had a return on equity of 3.36% and a net margin of 0.85%. The firm's revenue for the quarter was up 10.4% on a year-over-year basis. During the same quarter last year, the business posted $0.05 earnings per share. On average, analysts forecast that Warby Parker Inc. will post 0.14 EPS for the current year.

Insiders Place Their Bets

In related news, CEO Neil Blumenthal sold 100,000 shares of the firm's stock in a transaction that occurred on Thursday, October 1st. The shares were sold at an average price of $27.69, for a total transaction of $2,769,000.00. Following the completion of the sale, the chief executive officer directly owned 36,020 shares in the company, valued at approximately $997,393.80. This trade represents a 73.52% 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. 16.80% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Warby Parker

Institutional investors and hedge funds have recently modified their holdings of the stock. EverSource Wealth Advisors LLC lifted its holdings in shares of Warby Parker by 105.7% during 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 in the last quarter. GAMMA Investing LLC grew its position in shares of Warby Parker by 53.7% in the 3rd quarter. GAMMA Investing LLC now owns 1,339 shares of the company's stock valued at $37,000 after purchasing an additional 468 shares during the period. Parallel Advisors LLC increased its stake in Warby Parker by 110.7% during the 1st quarter. Parallel Advisors LLC now owns 1,837 shares of the company's stock worth $39,000 after purchasing an additional 965 shares in the last quarter. Essential Partners LLC increased its stake in Warby Parker by 44.2% during the 1st quarter. Essential Partners LLC now owns 2,570 shares of the company's stock worth $54,000 after purchasing an additional 788 shares in the last quarter. Finally, Sterling Capital Management LLC increased its stake in Warby Parker by 839.3% during the 3rd quarter. Sterling Capital Management LLC now owns 3,419 shares of the company's stock worth $95,000 after purchasing an additional 3,055 shares in the last quarter. 93.24% of the stock is currently owned by hedge funds and other institutional investors.

About Warby Parker

Warby Parker Inc is an optical retailer that designs, manufactures and sells prescription eyeglasses, sunglasses, contact lenses and related accessories. The company offers its products through its website, mobile applications and a growing network of retail stores, combining online shopping with in-person services such as frame fitting and eye examinations.

Founded in 2010 by Neil Blumenthal, Dave Gilboa, Andrew Hunt and Jeffrey Raider, Warby Parker was established as a direct-to-consumer eyewear company.

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