Warby Parker (NYSE:WRBY) Stock Price Down 6.6% - Here's Why

Key Points

• Warby Parker shares fell 6.6% to about $22.29, with trading volume roughly 61% below the average daily level.
• Analyst sentiment remains generally positive, with an average “Moderate Buy” rating and a $30.00 average price target, although some firms recently maintained neutral ratings or lowered targets.
• The company’s latest quarterly results missed expectations, reporting $0.04 in EPS versus $0.10 expected and revenue of $235.51 million versus $237.98 million forecast; CEO Neil Blumenthal also sold 100,000 shares under a pre-arranged trading plan.

Warby Parker Inc. (NYSE:WRBY - Get Free Report)'s share price dropped 6.6% on Tuesday. The stock traded as low as $22.46 and last traded at $22.2850. Approximately 1,179,978 shares traded hands during trading, a decline of 61% from the average daily volume of 3,050,218 shares. The stock had previously closed at $23.86.

Analysts Set New Price Targets

WRBY has been the topic of a number of research analyst reports. UBS Group increased their target price on Warby Parker from $27.00 to $28.00 and gave the company a "neutral" rating in a research note on Friday, August 7th. BTIG Research reiterated a "buy" rating on shares of Warby Parker in a report on Tuesday, October 27th. Roth Capital reiterated a "neutral" rating and set a $28.00 price objective on shares of Warby Parker in a research report on Wednesday, August 5th. Citigroup reissued a "market outperform" rating on shares of Warby Parker in a report on Thursday, September 17th. Finally, Citizens Jmp dropped their target price on Warby Parker from $30.00 to $29.00 and set a "market outperform" rating for the company in a research report on Friday, August 7th. One equities research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, Warby Parker currently has an average rating of "Moderate Buy" and an average target price of $30.00.

Warby Parker Stock Performance

The firm has a 50-day moving average of $25.08 and a 200-day moving average of $25.21. The firm has a market capitalization of $2.42 billion, a P/E ratio of 321.36, a price-to-earnings-growth ratio of 6.62 and a beta of 1.89.

Warby Parker (NYSE:WRBY - Get Free Report) last released its quarterly earnings data on Thursday, August 6th. The company reported $0.04 earnings per share for the quarter, missing analysts' consensus estimates of $0.10 by ($0.06). The company 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%. The business's revenue for the quarter was up 9.6% compared to the same quarter last year. During the same period last year, the company posted ($0.01) EPS. Equities analysts anticipate that Warby Parker Inc. will post 0.14 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, CEO Neil Blumenthal sold 100,000 shares of Warby Parker stock in a transaction that occurred on Thursday, October 1st. The stock was sold at an average price of $27.69, for a total value of $2,769,000.00. Following 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 position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 16.80% of the company's stock.

Institutional Trading of Warby Parker

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Dimensional Fund Advisors LP lifted its position in shares of Warby Parker by 10.7% in the 1st quarter. Dimensional Fund Advisors LP now owns 1,722,577 shares of the company's stock worth $36,291,000 after purchasing an additional 166,235 shares during the period. Bank of America Corp DE raised its stake in Warby Parker by 30.9% in the first quarter. Bank of America Corp DE now owns 1,377,646 shares of the company's stock worth $29,027,000 after buying an additional 325,250 shares in the last quarter. Ranger Investment Management L.P. bought a new position in Warby Parker in the second quarter worth about $30,949,000. Atreides Management LP lifted its holdings in Warby Parker by 74.8% in the first quarter. Atreides Management LP now owns 686,995 shares of the company's stock worth $14,475,000 after buying an additional 293,910 shares during the period. Finally, Simplify Asset Management Inc. lifted its holdings in Warby Parker by 6.9% in the third quarter. Simplify Asset Management Inc. now owns 627,337 shares of the company's stock worth $17,427,000 after buying an additional 40,271 shares during the period. Hedge funds and other institutional investors own 93.24% of the company's stock.

Warby Parker Company Profile

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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