Warby Parker (NYSE:WRBY) Trading Down 6.6% - Here's Why

Key Points

• Warby Parker shares fell 6.6% in mid-day trading, with volume running well above average as investors reacted to the latest news around the stock.
• The company’s most recent earnings report showed EPS of $0.03, missing estimates of $0.11, even though revenue of $242.45 million came in slightly above expectations and rose 8.4% year over year.
• Wall Street sentiment remains fairly positive overall, with 10 Buy ratings and an average price target of $29, while analysts at Telsey and BTIG recently raised their targets and maintained bullish ratings.

Warby Parker Inc. (NYSE:WRBY - Get Free Report)'s stock price was down 6.6% during mid-day trading on Tuesday . The stock traded as low as $25.10 and last traded at $26.7620. Approximately 5,404,937 shares were traded during trading, an increase of 75% from the average daily volume of 3,083,103 shares. The stock had previously closed at $28.65.

Analyst Upgrades and Downgrades

Several research analysts have recently issued reports on WRBY shares. Telsey Advisory Group upped their price target 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. Citigroup increased their price objective on Warby Parker from $18.00 to $24.00 and gave the company a "neutral" rating in a report on Tuesday, March 17th. Weiss Ratings upgraded Warby Parker from a "sell (d)" rating to a "hold (c-)" rating in a report on Monday, May 11th. BTIG Research increased their price objective on Warby Parker from $32.00 to $34.00 and gave the company a "buy" rating in a report on Thursday, May 7th. Finally, UBS Group increased their price objective on Warby Parker from $25.00 to $27.00 and gave the company a "neutral" rating in a report on Friday, May 8th. Ten investment analysts have rated the stock with a Buy rating and six have given a Hold rating to the company's stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $29.00.

Warby Parker Trading Down 12.3%

The company has a market cap of $2.69 billion, a P/E ratio of 1,256.68 and a beta of 1.95. The stock's 50-day moving average price is $23.70 and its 200-day moving average price is $23.43.

Warby Parker (NYSE:WRBY - Get Free Report) last released its quarterly earnings data on Thursday, May 7th. The company reported $0.03 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.11 by ($0.08). Warby Parker had a return on equity of 2.30% and a net margin of 0.15%.The company had revenue of $242.45 million for the quarter, compared to the consensus estimate of $239.44 million. During the same period last year, the company earned $0.03 EPS. Warby Parker's revenue for the quarter was up 8.4% compared to the same quarter last year. On average, research analysts anticipate that Warby Parker Inc. will post 0.24 earnings per share for the current fiscal year.

Insider Activity at Warby Parker

In other news, Director Bradley E. Singer sold 4,833 shares of the stock in a transaction that occurred on Thursday, May 14th. The stock was sold at an average price of $29.01, for a total value of $140,205.33. Following the completion of the sale, the director directly owned 100,000 shares of the company's stock, valued at $2,901,000. This represents a 4.61% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CEO Neil Harris Blumenthal sold 22,442 shares of the stock in a transaction that occurred on Monday, April 20th. The stock was sold at an average price of $25.09, for a total value of $563,069.78. Following the completion of the sale, the chief executive officer directly owned 50,165 shares of the company's stock, valued at approximately $1,258,639.85. This trade represents a 30.91% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 140,793 shares of company stock valued at $3,616,716. Company insiders own 16.80% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of WRBY. JPMorgan Chase & Co. boosted its holdings in 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. Fuller & Thaler Asset Management Inc. purchased a new position in Warby Parker in the fourth quarter worth $46,484,000. SRS Investment Management LLC purchased a new position in Warby Parker in the fourth quarter worth $31,277,000. Goldman Sachs Group Inc. lifted its stake in Warby Parker by 96.8% in the first quarter. Goldman Sachs Group Inc. now owns 1,888,817 shares of the company's stock worth $34,433,000 after purchasing an additional 929,073 shares during the last quarter. Finally, Price T Rowe Associates Inc. MD lifted its stake in Warby Parker by 71.3% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 2,078,778 shares of the company's stock worth $45,298,000 after purchasing an additional 865,345 shares during the last quarter. 93.24% of the stock is currently owned by hedge funds and other institutional investors.

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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