Wayfair (NYSE:W) Trading Down 7.6% - Here's What Happened

Key Points

• Wayfair shares fell 7.6% to about $99.20 in midday trading, with volume down 93% from the average daily level.
• Analyst sentiment remains positive overall, with MarketBeat reporting a “Moderate Buy” consensus and an average price target of $119.89; Guggenheim recently raised its target to $135.
• Wayfair exceeded quarterly expectations with $0.95 in EPS versus $0.90 expected and $3.52 billion in revenue, though the company remained unprofitable with a negative 2.49% net margin. Insiders sold $29.8 million of stock during the last quarter.

Wayfair Inc. (NYSE:W - Get Free Report)'s share price fell 7.6% during mid-day trading on Wednesday . The stock traded as low as $101.92 and last traded at $99.1970. Approximately 258,938 shares changed hands during mid-day trading, a decline of 93% from the average daily volume of 3,552,230 shares. The stock had previously closed at $107.35.

Analysts Set New Price Targets

Several research analysts have recently issued reports on W shares. Guggenheim raised their target price on shares of Wayfair from $100.00 to $135.00 and gave the company a "buy" rating in a research note on Wednesday, August 5th. Sanford C. Bernstein reaffirmed an "outperform" rating on shares of Wayfair in a research note on Tuesday, September 1st. Jefferies Financial Group reissued a "hold" rating and issued a $108.00 price target on shares of Wayfair in a research note on Tuesday, August 4th. Deutsche Bank Aktiengesellschaft reaffirmed a "hold" rating and set a $120.00 price objective on shares of Wayfair in a research note on Wednesday, August 5th. Finally, Zacks Research raised Wayfair from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, August 25th. Three investment analysts have rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, ten have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, Wayfair has an average rating of "Moderate Buy" and an average price target of $119.89.

Wayfair Price Performance

The stock has a market capitalization of $13.09 billion, a price-to-earnings ratio of -40.28, a PEG ratio of 3.77 and a beta of 2.99. The business has a 50 day simple moving average of $98.69 and a 200-day simple moving average of $84.14.

Wayfair (NYSE:W - Get Free Report) last announced its earnings results on Tuesday, August 4th. The company reported $0.95 EPS for the quarter, topping the consensus estimate of $0.90 by $0.05. The firm had revenue of $3.52 billion for the quarter, compared to the consensus estimate of $3.47 billion. Wayfair had a negative net margin of 2.49% and a negative return on equity of 3.40%. The business's quarterly revenue was up 7.5% on a year-over-year basis. During the same period last year, the company posted $0.87 EPS. As a group, equities analysts predict that Wayfair Inc. will post 0.93 earnings per share for the current year.

Insiders Place Their Bets

In other news, Director Steven Conine sold 69,000 shares of Wayfair stock in a transaction that occurred on 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 sale, the director directly owned 360,073 shares in the company, valued at $37,217,145.28. This trade represents a 16.08% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Niraj Shah sold 69,000 shares of the stock in a transaction dated 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 transaction, the chief executive officer owned 360,137 shares of the company's stock, valued at approximately $37,223,760.32. This represents a 16.08% decrease in their ownership of the stock. 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 a total of 288,893 shares of company stock valued at $29,795,521 in the last quarter. 18.44% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Wayfair

A number of institutional investors and hedge funds have recently modified their holdings of W. Flynn Zito Capital Management LLC raised its position in Wayfair by 6.4% during the 1st quarter. Flynn Zito Capital Management LLC now owns 2,775 shares of the company's stock valued at $209,000 after purchasing an additional 168 shares in the last quarter. Larson Financial Group LLC raised its holdings in shares of Wayfair by 36.2% in the 4th quarter. Larson Financial Group LLC now owns 708 shares of the company's stock valued at $71,000 after purchasing an additional 188 shares in the last quarter. Arizona State Retirement System increased its holdings in Wayfair by 0.7% during the second quarter. Arizona State Retirement System now owns 28,514 shares of the company's stock valued at $2,635,000 after buying an additional 201 shares during the period. Triumph Capital Management raised its stake in Wayfair by 6.3% in the second quarter. Triumph Capital Management now owns 3,498 shares of the company's stock worth $323,000 after buying an additional 207 shares in the last quarter. Finally, Parallel Advisors LLC boosted its position in Wayfair by 18.6% during the 1st quarter. Parallel Advisors LLC now owns 1,661 shares of the company's stock valued at $125,000 after acquiring an additional 261 shares in the last quarter. 89.67% of the stock is owned by institutional investors.

About Wayfair

Wayfair Inc is an e-commerce company focused on furniture, home furnishings and décor. Its online platform offers a broad assortment of products for rooms throughout the home, including furniture, mattresses, rugs, lighting, kitchen and dining items, outdoor furnishings, home improvement products and décor.

The company operates through the Wayfair brand and specialized retail brands such as Joss & Main, AllModern, Birch Lane and Perigold. It also serves business customers through Wayfair Professional, which provides products and services for commercial, hospitality and design-related projects.

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