Warby Parker (NYSE:WRBY) Coverage Initiated by Analysts at Bank of America

Key Points

• Bank of America initiated coverage on Warby Parker with a Buy rating and a $33 price target, implying about 13% upside from the current share price.
• Other analysts remain generally constructive on the stock, with the broader consensus at Moderate Buy and an average price target of $29.82.
• Warby Parker recently reported Q1 revenue of $242.45 million, up 8.4% year over year, but EPS of $0.03 came in below expectations; the stock was trading near $29.11 and has seen notable insider selling in recent months.

Equities researchers at Bank of America started coverage on shares of Warby Parker (NYSE:WRBY - Get Free Report) in a research note issued to investors on Monday,Benzinga reports. The brokerage set a "buy" rating and a $33.00 price target on the stock. Bank of America's price objective indicates a potential upside of 13.36% from the company's current price.

Several other research analysts have also recently commented on the stock. UBS Group boosted their price target 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. BTIG Research lifted their price objective on shares of Warby Parker from $32.00 to $34.00 and gave the stock a "buy" rating in a research report on Thursday, May 7th. Telsey Advisory Group boosted their target price on shares of Warby Parker from $32.00 to $33.00 and gave the stock an "outperform" rating in a research note on Friday, May 8th. Citigroup reissued a "market outperform" rating on shares of Warby Parker in a report on Friday, May 22nd. Finally, Piper Sandler reissued an "overweight" rating on shares of Warby Parker in a report on Tuesday, May 19th. Ten analysts have rated the stock with a Buy rating and five have given a Hold rating to the company's stock. According to MarketBeat, Warby Parker has a consensus rating of "Moderate Buy" and an average price target of $29.82.

Warby Parker Price Performance

WRBY stock opened at $29.11 on Monday. The business's 50-day moving average is $25.30 and its two-hundred day moving average is $24.83. The firm has a market capitalization of $3.12 billion, a P/E ratio of 1,456.23 and a beta of 1.96. Warby Parker has a 1 year low of $14.96 and a 1 year high of $31.00.

Warby Parker (NYSE:WRBY - Get Free Report) last announced its quarterly earnings data on Thursday, May 7th. The company reported $0.03 EPS for the quarter, missing analysts' consensus estimates of $0.11 by ($0.08). The company had revenue of $242.45 million for the quarter, compared to analyst estimates of $239.44 million. Warby Parker had a return on equity of 2.30% and a net margin of 0.15%.The business's quarterly revenue was up 8.4% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.03 earnings per share. On average, analysts expect that Warby Parker will post 0.19 EPS for the current year.

Insider Activity at Warby Parker

In other Warby Parker news, Director Bradley E. Singer sold 20,167 shares of the company's stock in a transaction on Wednesday, May 13th. The shares were sold at an average price of $28.51, for a total value of $574,961.17. Following the completion of the transaction, the director owned 104,833 shares in the company, valued at $2,988,788.83. This represents a 16.13% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, Director Teresa Briggs sold 5,000 shares of the company's stock in a transaction on Tuesday, June 16th. The shares were sold at an average price of $25.94, for a total transaction of $129,700.00. Following the completion of the transaction, the director owned 48,883 shares of the company's stock, valued at $1,268,025.02. This represents a 9.28% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 203,040 shares of company stock valued at $5,470,026. Corporate insiders own 16.80% of the company's stock.

Institutional Trading of Warby Parker

Hedge funds and other institutional investors have recently made changes to their positions in the company. JPMorgan Chase & Co. boosted its position in shares of Warby Parker by 32.5% in the 4th quarter. JPMorgan Chase & Co. now owns 9,679,067 shares of the company's stock valued at $210,907,000 after purchasing an additional 2,375,726 shares during the period. Vaughan Nelson Investment Management L.P. increased its position in Warby Parker by 31.3% during the first quarter. Vaughan Nelson Investment Management L.P. now owns 3,028,307 shares of the company's stock worth $63,806,000 after buying an additional 722,627 shares during the period. Bank of New York Mellon Corp lifted its stake in Warby Parker by 17.2% in the fourth quarter. Bank of New York Mellon Corp now owns 2,594,171 shares of the company's stock valued at $56,527,000 after buying an additional 381,071 shares during the last quarter. State Street Corp lifted its stake in Warby Parker by 9.2% in the fourth quarter. State Street Corp now owns 2,408,610 shares of the company's stock valued at $52,484,000 after buying an additional 202,029 shares during the last quarter. Finally, Geode Capital Management LLC boosted its holdings in shares of Warby Parker by 0.5% in the fourth quarter. Geode Capital Management LLC now owns 2,297,123 shares of the company's stock valued at $50,064,000 after acquiring an additional 11,736 shares during the period. Institutional investors and hedge funds own 93.24% of the company's stock.

About Warby Parker

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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