Warby Parker (NYSE:WRBY) Stock Price Down 6.1% - Here's Why

Key Points

• Warby Parker shares fell 6.1% on Monday, trading as low as $24.99 after closing at $26.41, on lighter-than-usual volume.
• Recent earnings were mixed: the company missed EPS estimates with $0.03 versus $0.11 expected, though revenue of $242.45 million came in above forecasts and rose 8.4% year over year.
• Analysts remain generally positive despite the pullback, with a consensus rating of “Moderate Buy” and an average price target of $29.82; several firms recently raised targets or reiterated bullish ratings.

Shares of Warby Parker Inc. (NYSE:WRBY - Get Free Report) traded down 6.1% on Monday . The stock traded as low as $24.99 and last traded at $24.8060. Approximately 490,156 shares changed hands during mid-day trading, a decline of 84% from the average daily volume of 3,153,486 shares. The stock had previously closed at $26.41.

Analyst Upgrades and Downgrades

A number of research analysts have issued reports on WRBY shares. Citigroup restated a "market outperform" rating on shares of Warby Parker in a research note on Friday, May 22nd. Piper Sandler reissued an "overweight" rating on shares of Warby Parker in a report on Tuesday, May 19th. 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 increased their price target on shares of Warby Parker from $32.00 to $34.00 and gave the company a "buy" rating in a research report on Thursday, May 7th. Finally, Telsey Advisory Group raised their price objective on shares of Warby Parker from $32.00 to $33.00 and gave the stock an "outperform" rating in a report on Friday, May 8th. Ten investment analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $29.82.

Warby Parker Price Performance

The stock has a market capitalization of $2.64 billion, a PE ratio of 1,233.77, a P/E/G ratio of 5.28 and a beta of 1.91. The business's fifty day moving average price is $26.71 and its 200-day moving average price is $25.06.

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

Insiders Place Their Bets

In related news, Director Teresa Briggs sold 5,000 shares of the firm's stock in a transaction that occurred on Tuesday, June 16th. The shares were sold at an average price of $25.94, for a total value of $129,700.00. Following the sale, the director directly owned 48,883 shares of the company's stock, valued at $1,268,025.02. This trade represents a 9.28% decrease in their ownership of the stock. The sale was disclosed in a document filed 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 Bradley E. Singer sold 4,833 shares of Warby Parker stock in a transaction that occurred on Thursday, May 14th. The shares were sold at an average price of $29.01, for a total transaction of $140,205.33. Following the sale, the director owned 100,000 shares of the company's stock, valued at approximately $2,901,000. The trade was a 4.61% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 366,207 shares of company stock worth $10,814,738. Insiders own 16.80% of the company's stock.

Hedge Funds Weigh In On Warby Parker

Institutional investors have recently made changes to their positions in the stock. First Horizon Corp lifted its holdings in shares of Warby Parker by 96.7% during the 4th quarter. First Horizon Corp now owns 1,210 shares of the company's stock worth $26,000 after acquiring an additional 595 shares during the last quarter. EverSource Wealth Advisors LLC increased its stake in Warby Parker by 105.7% in the first 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 last quarter. Eagle Bay Advisors LLC bought a new position in Warby Parker in the fourth quarter valued at $35,000. Farther Finance Advisors LLC raised its position in Warby Parker by 41.4% during the fourth quarter. Farther Finance Advisors LLC now owns 1,687 shares of the company's stock valued at $37,000 after purchasing an additional 494 shares in the last quarter. Finally, Parallel Advisors LLC raised its position in 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. Institutional investors own 93.24% of the company's stock.

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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