Wayfair (NYSE:W) Price Target Raised to $92.00 at Royal Bank Of Canada

Key Points

• Royal Bank of Canada raised Wayfair’s price target from $78 to $92 while maintaining a “sector perform” rating, implying 15.58% downside from the previous close. The consensus rating remains “Moderate Buy,” with an average target of $115.23.
• Wayfair’s latest quarter beat expectations, with revenue rising 7.5% year over year to $3.52 billion and EPS of $0.95 exceeding the $0.90 consensus estimate. U.S. demand and free cash flow improved, although international revenue declined and the company remained unprofitable.
• Shares fell 6.1% to $108.98 during Wednesday trading, despite several analysts raising their targets. Insider ownership stood at 18.44%, while institutional investors and hedge funds held 89.67% of the stock.

Wayfair (NYSE:W - Get Free Report) had its price target upped by analysts at Royal Bank Of Canada from $78.00 to $92.00 in a report released on Wednesday,Benzinga reports. The firm currently has a "sector perform" rating on the stock. Royal Bank Of Canada's price objective suggests a potential downside of 15.58% from the company's previous close.

A number of other equities research analysts also recently commented on the company. BMO Capital Markets upped their price objective on Wayfair from $105.00 to $115.00 and gave the company a "market perform" rating in a report on Wednesday. Wedbush boosted their target price on Wayfair from $85.00 to $125.00 and gave the stock a "neutral" rating in a research report on Wednesday. Canaccord Genuity Group lowered their price target on Wayfair from $125.00 to $115.00 and set a "buy" rating for the company in a research note on Friday, May 1st. Weiss Ratings upgraded shares of Wayfair from a "sell (e+)" rating to a "sell (d-)" rating in a research report on Wednesday, June 17th. Finally, Citigroup reduced their price objective on shares of Wayfair from $110.00 to $95.00 and set a "buy" rating on the stock in a research note on Tuesday, May 19th. One investment analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating, eleven have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $115.23.

Wayfair Stock Down 6.1%

W stock traded down $7.10 during midday trading on Wednesday, reaching $108.98. The company's stock had a trading volume of 3,033,573 shares, compared to its average volume of 3,818,259. The business's 50-day simple moving average is $85.37 and its 200-day simple moving average is $81.97. Wayfair has a 52 week low of $55.60 and a 52 week high of $119.98. The stock has a market cap of $14.39 billion, a PE ratio of -46.50, a price-to-earnings-growth ratio of 4.80 and a beta of 2.99.

Wayfair (NYSE:W - Get Free Report) last issued its earnings results on Tuesday, August 4th. The company reported $0.95 EPS for the quarter, beating the consensus estimate of $0.90 by $0.05. The company had revenue of $3.52 billion during the quarter, compared to analysts' expectations of $3.47 billion. Wayfair had a negative net margin of 2.41% and a negative return on equity of 2.20%. The business's revenue for the quarter was up 7.5% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.87 EPS. As a group, equities analysts forecast that Wayfair will post 0.62 earnings per share for the current fiscal year.

Insider Activity

In other news, insider Jon Blotner sold 5,925 shares of the firm's stock in a transaction dated Thursday, July 2nd. The stock was 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 $11,299,053.76. This trade represents a 4.81% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. 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. 18.44% of the stock is owned by company insiders.

Institutional Trading of Wayfair

Several hedge funds have recently bought and sold shares of W. Webster Bank N. A. acquired a new position in shares of Wayfair in the fourth quarter valued at approximately $30,000. V Square Quantitative Management LLC acquired a new stake in shares of Wayfair during the fourth quarter worth $33,000. Havemeyer Place LP bought a new stake in Wayfair in the 4th quarter valued at $39,000. Kestra Advisory Services LLC acquired a new position in Wayfair in the 4th quarter worth $44,000. Finally, Larson Financial Group LLC boosted its stake in Wayfair by 30.0% in the 3rd quarter. Larson Financial Group LLC now owns 520 shares of the company's stock worth $46,000 after purchasing an additional 120 shares during the period. 89.67% of the stock is currently owned by institutional investors and hedge funds.

Key Stories Impacting Wayfair

Here are the key news stories impacting Wayfair this week:

• Positive Sentiment: Q2 results exceeded expectations: Revenue rose 7.5% year over year to approximately $3.52 billion, while adjusted EPS of $0.95 topped the roughly $0.90 consensus estimate. Wayfair Q2 Earnings Beat Estimates on U.S. Demand, Market Share Gains
• Positive Sentiment: U.S. demand is improving: U.S. revenue increased 8.7%, the company’s strongest domestic growth since 2020. Active customers reached 21.7 million, while higher-income shoppers, specialty brands and Perigold supported market-share gains. Wayfair posts strongest U.S. growth since 2020
• Positive Sentiment: Cash flow and near-term guidance were encouraging: Free cash flow reached its highest level since 2020, and Wayfair projected high-single-digit revenue growth with a 6%–7% adjusted EBITDA margin in the third quarter. Wayfair projects high single-digit Q3 growth
• Positive Sentiment: Analysts raised targets: Needham raised its target to $133 with a buy rating, Wells Fargo to $130 with an overweight rating, Wedbush to $125, and BMO to $115. Wayfair Analysts Boost Their Forecasts
• Neutral Sentiment: International performance remained soft: International revenue declined 1.3% year over year, limiting the benefit of domestic growth. Wayfair Swings to Loss on Lower International Sales
• Negative Sentiment: Profitability concerns persist: Wayfair still reported a net loss, and a debt-related charge weighed on the quarter. After the stock’s substantial prior-day surge, elevated expectations and profit-taking are contributing to the pullback.

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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