Wayfair (NYSE:W) Cut to "Hold" at Zacks Research

Key Points

• Zacks Research downgraded Wayfair from “strong-buy” to “hold,” adding to a mixed analyst picture even though the consensus rating remains “Moderate Buy.”
• Wayfair’s latest quarterly results showed revenue of $2.93 billion and EPS of $0.26, both roughly in line with expectations, with revenue up 7.4% year over year.
• Insider activity has been notable, with recent stock sales by executives and directors, while institutional ownership remains high at 89.67%.

Wayfair (NYSE:W - Get Free Report) was downgraded by equities researchers at Zacks Research from a "strong-buy" rating to a "hold" rating in a report issued on Monday,Zacks.com reports.

Several other brokerages have also issued reports on W. Morgan Stanley set a $110.00 price objective on shares of Wayfair in a report on Friday, May 1st. Truist Financial set a $99.00 target price on Wayfair in a report on Monday, June 8th. The Goldman Sachs Group set a $79.00 target price on Wayfair in a research report on Friday, May 1st. TD Cowen reduced their price target on Wayfair from $88.00 to $75.00 and set a "hold" rating for the company in a research report on Thursday, April 30th. Finally, Weiss Ratings upgraded Wayfair from a "sell (e+)" rating to a "sell (d-)" rating in a research note on Wednesday, June 17th. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating, eleven have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $100.36.

Wayfair Stock Performance

NYSE W opened at $84.70 on Monday. The company has a market capitalization of $11.18 billion, a price-to-earnings ratio of -36.20, a price-to-earnings-growth ratio of 4.61 and a beta of 2.96. The company's 50-day simple moving average is $79.84 and its two-hundred day simple moving average is $83.36. Wayfair has a one year low of $55.60 and a one year high of $119.98.

Wayfair (NYSE:W - Get Free Report) last posted its quarterly earnings results on Thursday, April 30th. The company reported $0.26 EPS for the quarter, meeting the consensus estimate of $0.26. Wayfair had a negative net margin of 2.41% and a negative return on equity of 2.20%. The business had revenue of $2.93 billion during the quarter, compared to analyst estimates of $2.89 billion. During the same quarter in the previous year, the business posted $0.10 EPS. The company's quarterly revenue was up 7.4% compared to the same quarter last year. Equities analysts expect that Wayfair will post 0.63 earnings per share for the current fiscal year.

Insider Activity at Wayfair

In other Wayfair news, insider Jon Blotner sold 5,925 shares of the business's stock in a transaction that occurred on Thursday, July 2nd. The shares were sold at an average price of $96.29, for a total transaction of $570,518.25. Following the sale, the insider owned 117,344 shares of the company's stock, valued at approximately $11,299,053.76. The trade was a 4.81% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Steven Conine sold 112,861 shares of the company's stock in a transaction that occurred on Thursday, April 23rd. The shares were sold at an average price of $77.50, for a total transaction of $8,746,727.50. Following the transaction, the director owned 436,212 shares in the company, valued at $33,806,430. The trade was a 20.55% decrease in their position. 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 sold 245,925 shares of company stock valued at $19,183,749 in the last three months. 18.44% of the stock is owned by insiders.

Institutional Investors Weigh In On Wayfair

Several institutional investors and hedge funds have recently made changes to their positions in W. Optas LLC increased its holdings in shares of Wayfair by 2.1% in the fourth quarter. Optas LLC now owns 5,057 shares of the company's stock valued at $508,000 after purchasing an additional 106 shares during the last quarter. Larson Financial Group LLC boosted its stake in Wayfair by 30.0% during the third quarter. Larson Financial Group LLC now owns 520 shares of the company's stock worth $46,000 after buying an additional 120 shares during the last quarter. Wedmont Private Capital boosted its stake in Wayfair by 3.3% during the fourth quarter. Wedmont Private Capital now owns 3,774 shares of the company's stock worth $415,000 after buying an additional 121 shares during the last quarter. State of Alaska Department of Revenue grew its holdings in Wayfair by 2.3% in the 4th quarter. State of Alaska Department of Revenue now owns 5,418 shares of the company's stock valued at $544,000 after buying an additional 124 shares in the last quarter. Finally, Kestra Private Wealth Services LLC grew its holdings in Wayfair by 4.7% in the 4th quarter. Kestra Private Wealth Services LLC now owns 3,435 shares of the company's stock valued at $345,000 after buying an additional 155 shares in the last quarter. 89.67% of the stock is currently owned by institutional investors and hedge funds.

About Wayfair

Wayfair Inc NYSE: W is an e-commerce company focused on home furnishings and décor. Through its platform, Wayfair offers a broad assortment of furniture, lighting, home textiles, kitchenware and decorative accessories. The company's portfolio includes flagship sites such as Wayfair.com, as well as specialty retail brands like Joss & Main, AllModern, Birch Lane and Perigold, each catering to distinct design styles and price points.

Founded in 2002 by Niraj Shah and Steve Conine under the name CSN Stores, the business rebranded as Wayfair in 2011 and went public in 2014.

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