Warby Parker (NYSE:WRBY) Shares Down 6.2% - What's Next?

Key Points

• Shares down 6.2% — WRBY fell to about $20.09 (intraday low $20.25) on Thursday with only ~58,216 shares traded, a ~98% drop vs. average daily volume.
• Analyst backdrop: the consensus rating is a "Moderate Buy" with an average price target of $28 (10 Buys, 5 Holds, 1 Sell), while individual targets range roughly from $20 to $32.
• Insider selling and valuation risks: CEO Neil Blumenthal sold 50,000 shares at ~$27.08 and insiders sold 216,453 shares (~$5.57M) last quarter; the stock trades below its 50- and 200-day moving averages and shows an extremely high P/E (~1,032) with a $2.20B market cap.

Warby Parker Inc. (NYSE:WRBY - Get Free Report)'s stock price was down 6.2% on Thursday . The stock traded as low as $20.25 and last traded at $20.0870. Approximately 58,216 shares changed hands during trading, a decline of 98% from the average daily volume of 3,255,454 shares. The stock had previously closed at $21.41.

Analysts Set New Price Targets

A number of brokerages have commented on WRBY. UBS Group restated a "neutral" rating and set a $20.00 price objective on shares of Warby Parker in a research report on Wednesday, February 25th. Weiss Ratings lowered shares of Warby Parker from a "hold (c-)" rating to a "sell (d)" rating in a research report on Monday, March 2nd. Citizens Jmp upgraded shares of Warby Parker from a "market perform" rating to an "outperform" rating and set a $30.00 price target for the company in a report on Wednesday, December 10th. Piper Sandler boosted their price objective on shares of Warby Parker from $22.00 to $32.00 and gave the company an "overweight" rating in a research report on Tuesday, December 16th. Finally, Telsey Advisory Group reiterated an "outperform" rating and issued a $32.00 price objective on shares of Warby Parker in a research note on Friday, February 20th. Ten analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $28.00.

Warby Parker Price Performance

The stock has a market capitalization of $2.20 billion, a P/E ratio of 1,032.32 and a beta of 2.07. The stock's fifty day moving average is $24.14 and its 200-day moving average is $23.62.

Insider Activity

In other Warby Parker news, CEO Neil Harris Blumenthal sold 50,000 shares of the company's stock in a transaction that occurred on Wednesday, January 7th. The stock was sold at an average price of $27.08, for a total transaction of $1,354,000.00. Following the completion of the sale, the chief executive officer owned 37,119 shares of the company's stock, valued at $1,005,182.52. This represents a 57.39% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Bradley E. Singer sold 15,793 shares of the stock in a transaction that occurred on Wednesday, March 4th. The shares were sold at an average price of $27.53, for a total value of $434,781.29. Following the transaction, the director owned 16,026 shares in the company, valued at approximately $441,195.78. This trade represents a 49.63% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders have sold 216,453 shares of company stock valued at $5,572,075. 18.24% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the company. Compass Wealth Management LLC bought a new stake in shares of Warby Parker during the third quarter valued at approximately $2,184,000. Impax Asset Management Group plc lifted its position in Warby Parker by 28.3% in the third quarter. Impax Asset Management Group plc now owns 385,000 shares of the company's stock worth $10,618,000 after purchasing an additional 85,000 shares during the period. Ranger Investment Management L.P. acquired a new stake in Warby Parker during the second quarter worth $22,198,000. JPMorgan Chase & Co. boosted its stake in Warby Parker by 40.9% during the third quarter. JPMorgan Chase & Co. now owns 7,303,341 shares of the company's stock worth $201,426,000 after buying an additional 2,120,768 shares in the last quarter. Finally, New York State Common Retirement Fund increased its holdings in Warby Parker by 1,112.3% in the 2nd quarter. New York State Common Retirement Fund now owns 353,091 shares of the company's stock valued at $7,743,000 after buying an additional 323,965 shares during the period. 93.24% of the stock is currently owned by institutional investors and hedge funds.

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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