Wayfair (NYSE:W) Stock Price Down 5.8% - Here's Why

Key Points

• Wayfair shares fell 5.8% to about $97.70, with trading volume 72% below the average session volume.
• Analysts maintain a broadly positive outlook, with a consensus “Moderate Buy” rating and an average price target of $119.89, despite mixed target-price revisions.
• Wayfair exceeded quarterly expectations, reporting $0.95 in EPS and $3.52 billion in revenue, while insiders sold 143,925 shares worth approximately $14.8 million over the past three months.

Shares of Wayfair Inc. (NYSE:W - Get Free Report) were down 5.8% on Monday . The stock traded as low as $97.62 and last traded at $97.70. 1,034,477 shares were traded during mid-day trading, a decline of 72% from the average session volume of 3,671,767 shares. The stock had previously closed at $103.76.

Wall Street Analysts Forecast Growth

W has been the topic of several analyst reports. BMO Capital Markets lifted their target price on shares of Wayfair from $105.00 to $115.00 and gave the stock a "market perform" rating in a research note on Wednesday, August 5th. Deutsche Bank Aktiengesellschaft restated a "hold" rating and issued a $120.00 price objective on shares of Wayfair in a research report on Wednesday, August 5th. Mizuho dropped their target price on shares of Wayfair from $110.00 to $90.00 and set an "outperform" rating for the company in a report on Friday, May 8th. Royal Bank Of Canada boosted their price target on Wayfair from $78.00 to $92.00 and gave the company a "sector perform" rating in a report on Wednesday, August 5th. Finally, Robert W. Baird set a $116.00 price target on Wayfair in a research report on Wednesday, August 5th. Three investment analysts have rated the stock with a Strong Buy rating, eighteen have given a Buy rating, ten have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, Wayfair has a consensus rating of "Moderate Buy" and an average target price of $119.89.

Wayfair Price Performance

The firm has a market cap of $12.88 billion, a PE ratio of -39.67, a price-to-earnings-growth ratio of 4.17 and a beta of 2.99. The firm has a 50-day simple moving average of $95.51 and a 200 day simple moving average of $81.75.

Wayfair (NYSE:W - Get Free Report) last issued its quarterly 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. The company had revenue of $3.52 billion during the quarter, compared to analysts' expectations of $3.47 billion. Wayfair had a negative net margin of 2.49% and a negative return on equity of 3.40%. Wayfair's revenue was up 7.5% on a year-over-year basis. During the same period last year, the company posted $0.87 EPS. Sell-side analysts forecast that Wayfair Inc. will post 0.83 earnings per share for the current fiscal year.

Insider Activity

In related news, CEO Niraj Shah sold 69,000 shares of the company's stock in a transaction on Wednesday, August 12th. The stock was sold at an average price of $103.36, for a total transaction of $7,131,840.00. Following the completion of the sale, the chief executive officer owned 360,137 shares in the company, valued at approximately $37,223,760.32. This represents a 16.08% decrease in their ownership of the stock. The transaction was disclosed in a legal 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. Also, Director Steven Conine sold 69,000 shares of the stock in a transaction dated Wednesday, August 12th. The shares were sold at an average price of $103.36, for a total value of $7,131,840.00. Following the completion of the transaction, the director directly owned 360,073 shares in the company, valued at approximately $37,217,145.28. This represents a 16.08% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 143,925 shares of company stock worth $14,834,198 over the last three months. 18.44% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of W. Havemeyer Place LP bought a new stake in Wayfair during the fourth quarter valued at about $39,000. Kestra Advisory Services LLC purchased a new stake in shares of Wayfair during the fourth quarter worth about $44,000. Larson Financial Group LLC raised its position in shares of Wayfair by 30.0% during the third quarter. Larson Financial Group LLC now owns 520 shares of the company's stock valued at $46,000 after buying an additional 120 shares during the last quarter. Comerica Bank raised its position in shares of Wayfair by 56.5% during the third quarter. Comerica Bank now owns 634 shares of the company's stock valued at $57,000 after buying an additional 229 shares during the last quarter. Finally, Brown Brothers Harriman & Co. purchased a new position in shares of Wayfair in the fourth quarter worth $71,000. Hedge funds and other institutional investors own 89.67% of the company's stock.

About Wayfair

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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