Warby Parker (NYSE:WRBY) Trading Down 6.3% - What's Next?

Key Points

• Warby Parker shares fell 6.3% on Wednesday, with trading volume far below average as the stock moved from a prior close of $28.04 to around $26.27.
• Recent analyst commentary was mixed but generally constructive: Bank of America started coverage with a Buy rating and a $33 target, while the overall consensus remains a Moderate Buy with an average price target of $29.82.
• The company’s latest earnings showed EPS of $0.03, missing expectations, while revenue of $242.45 million beat estimates and rose 8.4% year over year; meanwhile, insiders have been selling shares, including notable director transactions in recent months.

Warby Parker Inc. (NYSE:WRBY - Get Free Report)'s share price was down 6.3% on Wednesday . The stock traded as low as $26.40 and last traded at $26.2720. 171,730 shares traded hands during trading, a decline of 95% from the average daily volume of 3,200,242 shares. The stock had previously closed at $28.04.

Analyst Upgrades and Downgrades

Several equities research analysts recently commented on WRBY shares. Bank of America began coverage on Warby Parker in a report on Monday, June 29th. They issued a "buy" rating and a $33.00 price target for the company. UBS Group upped their target price on Warby Parker from $25.00 to $27.00 and gave the company a "neutral" rating in a report on Friday, May 8th. Weiss Ratings raised Warby Parker from a "sell (d)" rating to a "hold (c-)" rating in a research note on Monday, May 11th. Citigroup reiterated a "market outperform" rating on shares of Warby Parker in a report on Friday, May 22nd. Finally, BTIG Research boosted 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. Ten analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $29.82.

Warby Parker Trading Down 4.6%

The business has a fifty day moving average price of $26.04 and a two-hundred day moving average price of $24.94. The firm has a market capitalization of $2.87 billion, a PE ratio of 1,336.67, a PEG ratio of 5.84 and a beta of 1.91.

Warby Parker (NYSE:WRBY - Get Free Report) last issued 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 company had revenue of $242.45 million during the quarter, compared to analysts' expectations of $239.44 million. Warby Parker had a net margin of 0.15% and a return on equity of 2.30%. The firm's quarterly revenue was up 8.4% on a year-over-year basis. During the same quarter last year, the firm posted $0.03 earnings per share. On average, equities analysts forecast that Warby Parker Inc. will post 0.19 earnings per share for the current fiscal year.

Insider Activity at Warby Parker

In other Warby Parker news, Director Teresa Briggs sold 5,000 shares of the business'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 value of $129,700.00. Following the sale, the director owned 48,883 shares of the company's stock, valued at $1,268,025.02. The trade was a 9.28% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Bradley E. Singer sold 20,167 shares of the company's stock in a transaction on Wednesday, May 13th. The stock was sold at an average price of $28.51, for a total value of $574,961.17. Following the transaction, the director owned 104,833 shares in the company, valued at $2,988,788.83. This trade represents a 16.13% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 457,007 shares of company stock worth $13,005,598. Company insiders own 16.80% of the company's stock.

Institutional Investors Weigh In On Warby Parker

Institutional investors and hedge funds have recently modified their holdings of the company. JPMorgan Chase & Co. boosted its holdings in Warby Parker by 32.5% during the 4th quarter. JPMorgan Chase & Co. now owns 9,679,067 shares of the company's stock valued at $210,907,000 after acquiring an additional 2,375,726 shares during the period. Vaughan Nelson Investment Management L.P. increased its stake 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 purchasing an additional 722,627 shares during the period. Bank of New York Mellon Corp lifted its position in shares of Warby Parker by 17.2% during the fourth quarter. Bank of New York Mellon Corp now owns 2,594,171 shares of the company's stock worth $56,527,000 after purchasing an additional 381,071 shares in the last quarter. State Street Corp boosted its stake in shares of 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 purchasing an additional 202,029 shares during the period. Finally, Geode Capital Management LLC boosted its stake 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 purchasing an additional 11,736 shares during the period. Hedge funds and other institutional investors 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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