Traders Buy Large Volume of Call Options on Warby Parker (NYSE:WRBY)

Key Points

• Warby Parker saw unusually high bullish options activity: Traders purchased 7,805 call options, about 72% above the typical volume of 4,547.
• Shares fell $3.77 to $25.50 during Thursday trading. The company recently reported quarterly EPS of $0.04, below the $0.10 analyst consensus, while revenue rose 9.6% year over year to $235.51 million.
• Analysts maintain a “Moderate Buy” consensus with an average price target of $30.18, although insiders sold 366,207 shares worth approximately $10.8 million during the latest quarter.

Warby Parker Inc. (NYSE:WRBY - Get Free Report) was the recipient of unusually large options trading activity on Thursday. Stock traders bought 7,805 call options on the company. This is an increase of approximately 72% compared to the typical volume of 4,547 call options.

Warby Parker Price Performance

Shares of WRBY traded down $3.77 during mid-day trading on Thursday, hitting $25.50. 2,317,247 shares of the company's stock were exchanged, compared to its average volume of 3,116,090. The company has a market cap of $2.73 billion, a PE ratio of 1,284.64, a P/E/G ratio of 6.22 and a beta of 1.92. Warby Parker has a 52 week low of $14.96 and a 52 week high of $31.00. The company has a 50-day simple moving average of $26.58 and a 200 day simple moving average of $25.10.

Warby Parker (NYSE:WRBY - Get Free Report) last released its earnings results on Thursday, August 6th. The company reported $0.04 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.10 by ($0.06). The company had revenue of $235.51 million during the quarter, compared to analyst estimates of $237.98 million. Warby Parker had a net margin of 0.15% and a return on equity of 2.30%. Warby Parker's revenue was up 9.6% compared to the same quarter last year. During the same period in the prior year, the firm posted ($0.01) EPS. On average, analysts anticipate that Warby Parker will post 0.18 earnings per share for the current year.

Wall Street Analyst Weigh In

A number of brokerages recently issued reports on WRBY. Piper Sandler restated an "overweight" rating on shares of Warby Parker in a research note on Tuesday, May 19th. Citigroup reiterated a "market outperform" rating on shares of Warby Parker in a research report on Friday, May 22nd. Telsey Advisory Group boosted their price objective on Warby Parker from $32.00 to $33.00 and gave the company an "outperform" rating in a research report on Friday, May 8th. UBS Group increased their target price on shares of Warby Parker from $25.00 to $27.00 and gave the stock a "neutral" rating in a report on Friday, May 8th. Finally, BTIG Research boosted their target price on shares of Warby Parker from $32.00 to $34.00 and gave the company a "buy" rating in a report on Thursday, May 7th. Nine analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $30.18.

Insider Activity

In related news, CEO Neil Harris Blumenthal sold 9,200 shares of the stock in a transaction that occurred on Monday, July 6th. The stock was sold at an average price of $29.99, for a total transaction of $275,908.00. Following the sale, the chief executive officer owned 31,112 shares of the company's stock, valued at $933,048.88. This represents a 22.82% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Youngme E. Moon sold 10,000 shares of Warby Parker stock in a transaction that occurred on Friday, June 12th. The shares were sold at an average price of $26.53, for a total transaction of $265,300.00. Following the completion of the transaction, the director directly owned 26,061 shares in the company, valued at $691,398.33. This trade represents a 27.73% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 366,207 shares of company stock valued at $10,814,738. 16.80% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the company. First Horizon Corp increased its stake in shares of Warby Parker by 96.7% in the 4th quarter. First Horizon Corp now owns 1,210 shares of the company's stock valued at $26,000 after acquiring an additional 595 shares in the last quarter. EverSource Wealth Advisors LLC grew its stake 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 acquiring an additional 673 shares during the period. Eagle Bay Advisors LLC purchased a new position in Warby Parker during the 4th quarter valued at approximately $35,000. Farther Finance Advisors LLC raised its holdings in shares of Warby Parker by 41.4% in the fourth quarter. Farther Finance Advisors LLC now owns 1,687 shares of the company's stock worth $37,000 after buying an additional 494 shares during the period. Finally, Parallel Advisors LLC boosted its stake in shares of Warby Parker by 110.7% during the first quarter. Parallel Advisors LLC now owns 1,837 shares of the company's stock valued at $39,000 after purchasing an additional 965 shares in the last quarter. 93.24% of the stock is currently owned by institutional investors.

Warby Parker Company Profile

Warby Parker, Inc NYSE: WRBY is a U.S.-based eyewear company that designs, manufactures and sells prescription glasses, sunglasses and contact lenses through a direct-to-consumer model. Since its founding, the company has combined online and brick-and-mortar channels to streamline the customer experience, offering features such as virtual try-on technology and a home try-on program that allows consumers to sample frames before purchase.

Established in 2010 by Wharton graduates Neil Blumenthal, Dave Gilboa, Andrew Hunt and Jeffrey Raider, Warby Parker set out to disrupt the traditional optical market by controlling the entire supply chain—from frame design and lens production to warehousing and distribution.

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