Warby Parker (NYSE:WRBY) Trading 10.3% Higher - Here's Why

Key Points

• Warby Parker shares rose 10.3% to about $28.26, with trading volume roughly 70% below the average. Analysts maintain a “Moderate Buy” consensus, with an average price target of $30.18.
• The company’s latest quarterly results missed expectations, reporting adjusted EPS of $0.04 versus $0.10 expected and revenue of $235.5 million versus $238.0 million estimated. Revenue nonetheless increased 9.6% year over year.
• Insiders have sold 278,167 shares worth approximately $8.2 million over the past 90 days, while institutional investors own a substantial 93.24% of the stock.

Warby Parker Inc. (NYSE:WRBY - Get Free Report)'s stock price rose 10.3% during trading on Wednesday . The company traded as high as $28.23 and last traded at $28.2580. Approximately 944,843 shares changed hands during trading, a decline of 70% from the average daily volume of 3,103,084 shares. The stock had previously closed at $25.61.

Analysts Set New Price Targets

Several research analysts recently weighed in on WRBY shares. Roth Capital restated a "neutral" rating and issued a $28.00 price objective on shares of Warby Parker in a research report on Wednesday, August 5th. Telsey Advisory Group lifted their target price on Warby Parker from $32.00 to $33.00 and gave the company an "outperform" rating in a research note on Friday, May 8th. Weiss Ratings reissued a "hold (c-)" rating on shares of Warby Parker in a research note on Friday, August 7th. BTIG Research reaffirmed a "buy" rating on shares of Warby Parker in a research note on Friday, August 14th. Finally, Piper Sandler reiterated an "overweight" rating on shares of Warby Parker in a report on Tuesday, May 19th. Seven equities research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $30.18.

Warby Parker Trading Up 10.0%

The company has a market cap of $3.05 billion, a price-to-earnings ratio of 403.73, a price-to-earnings-growth ratio of 5.50 and a beta of 1.92. The firm's fifty day moving average price is $26.86 and its 200-day moving average price is $25.04.

Warby Parker (NYSE:WRBY - Get Free Report) last issued its quarterly earnings data on Thursday, August 6th. The company reported $0.04 EPS for the quarter, missing the consensus estimate of $0.10 by ($0.06). The business had revenue of $235.51 million for the quarter, compared to analyst estimates of $237.98 million. Warby Parker had a return on equity of 3.36% and a net margin of 0.85%.The business's quarterly revenue was up 9.6% compared to the same quarter last year. During the same period in the previous year, the business posted ($0.01) EPS. As a group, research analysts anticipate that Warby Parker Inc. will post 0.19 EPS for the current year.

Insider Transactions at Warby Parker

In related news, Director Youngme E. Moon sold 10,000 shares of the stock in a transaction that occurred on Friday, June 12th. The stock was sold at an average price of $26.53, for a total transaction of $265,300.00. Following the completion of the sale, the director directly owned 26,061 shares of the company's stock, valued at approximately $691,398.33. This represents a 27.73% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Teresa Briggs sold 5,000 shares of the firm's stock in a transaction that occurred on Tuesday, June 16th. The stock was sold at an average price of $25.94, for a total transaction of $129,700.00. Following the sale, the director owned 48,883 shares in the company, valued at $1,268,025.02. This trade represents a 9.28% 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 have sold a total of 278,167 shares of company stock valued at $8,206,480 over the last 90 days. 16.80% of the stock is owned by company insiders.

Institutional Investors Weigh In On Warby Parker

Large investors have recently made changes to their positions in the stock. AQR Capital Management LLC boosted its stake in Warby Parker by 101.0% in the 1st quarter. AQR Capital Management LLC now owns 171,271 shares of the company's stock worth $3,122,000 after purchasing an additional 86,053 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its stake in shares of Warby Parker by 4.6% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 52,690 shares of the company's stock valued at $961,000 after purchasing an additional 2,297 shares during the period. Goldman Sachs Group Inc. lifted its holdings in shares of Warby Parker by 96.8% in the first quarter. Goldman Sachs Group Inc. now owns 1,888,817 shares of the company's stock valued at $34,433,000 after purchasing an additional 929,073 shares in the last quarter. Caxton Associates LLP bought a new stake in shares of Warby Parker in the first quarter valued at about $252,000. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its position in shares of Warby Parker by 17.6% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 257,020 shares of the company's stock worth $4,685,000 after buying an additional 38,395 shares during the period. 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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