Wayfair (NYSE:W) Shares Gap Down - What's Next?

Key Points

• Wayfair shares opened significantly lower at $71.84 after closing at $77.84, with the latest trading price at $72.55 and a volume of 2,171,426 shares.
• Analysts have varied ratings for Wayfair, with Argus upgrading it to a "buy" rating and setting a target price of $40.00, while others like Jefferies set a higher target of $91.00.
• In insider trading, co-founder Steven Conine and CEO Niraj Shah both sold approximately 199,000 shares each at about $78.40, reducing their ownership by around 26.8%.

Wayfair Inc. (NYSE:W - Get Free Report) shares gapped down before the market opened on Monday . The stock had previously closed at $77.84, but opened at $71.84. Wayfair shares last traded at $72.55, with a volume of 2,171,426 shares traded.

Analyst Upgrades and Downgrades

A number of brokerages have commented on W. Argus upgraded Wayfair from a "hold" rating to a "buy" rating and set a $40.00 price objective on the stock in a research note on Monday, May 12th. Stifel Nicolaus set a $68.00 price objective on Wayfair and gave the stock a "hold" rating in a research note on Tuesday, August 5th. Jefferies Financial Group boosted their price objective on Wayfair from $74.00 to $91.00 and gave the stock a "buy" rating in a research note on Wednesday, August 20th. Piper Sandler restated an "overweight" rating and set a $95.00 price objective on shares of Wayfair in a research note on Monday, August 4th. Finally, Morgan Stanley reaffirmed an "overweight" rating and set a $70.00 target price (up from $50.00) on shares of Wayfair in a research report on Wednesday, July 2nd. Two equities research analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating, nine have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and an average price target of $67.65.

Wayfair Price Performance

The stock has a market capitalization of $9.52 billion, a P/E ratio of -30.61 and a beta of 2.92. The company has a fifty day moving average of $62.28 and a two-hundred day moving average of $45.25.

Wayfair (NYSE:W - Get Free Report) last announced its quarterly earnings data on Monday, August 4th. The company reported $0.87 earnings per share for the quarter, beating the consensus estimate of $0.33 by $0.54. The firm had revenue of $3.27 billion during the quarter, compared to the consensus estimate of $3.11 billion. The firm's quarterly revenue was up 5.0% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.47 earnings per share. As a group, equities research analysts predict that Wayfair Inc. will post -2.54 EPS for the current fiscal year.

Insider Buying and Selling

In other Wayfair news, insider Steven Conine sold 199,473 shares of Wayfair stock in a transaction that occurred on Wednesday, August 13th. The stock was sold at an average price of $78.40, for a total value of $15,638,683.20. Following the completion of the transaction, the insider directly owned 544,073 shares in the company, valued at $42,655,323.20. The trade was a 26.83% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, CEO Niraj Shah sold 199,422 shares of the business's stock in a transaction that occurred on Wednesday, August 13th. The stock was sold at an average price of $78.40, for a total value of $15,634,684.80. Following the transaction, the chief executive officer owned 544,137 shares of the company's stock, valued at approximately $42,660,340.80. This represents a 26.82% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 1,385,789 shares of company stock valued at $87,587,895. 21.91% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Wayfair

A number of institutional investors have recently added to or reduced their stakes in the company. Marex Group plc acquired a new stake in Wayfair in the second quarter worth approximately $652,000. Advisory Services Network LLC acquired a new stake in Wayfair in the second quarter worth approximately $553,000. Two Sigma Securities LLC lifted its position in Wayfair by 136.0% in the second quarter. Two Sigma Securities LLC now owns 17,458 shares of the company's stock worth $893,000 after purchasing an additional 10,061 shares during the period. Tidal Investments LLC lifted its position in Wayfair by 16.3% in the second quarter. Tidal Investments LLC now owns 14,232 shares of the company's stock worth $728,000 after purchasing an additional 1,994 shares during the period. Finally, Shellback Capital LP acquired a new stake in Wayfair in the second quarter worth approximately $24,292,000. 89.67% of the stock is currently owned by institutional investors and hedge funds.

About Wayfair

Wayfair Inc provides e-commerce business in the United States and internationally. The company offers approximately thirty million products for the home sector. It offers online selections of furniture, décor, housewares, and home improvement products through its sites consisting of Wayfair, Joss & Main, AllModern, Birch Lane, Perigold, and Wayfair Professional.

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