Wayfair (NYSE:W) Shares Gap Up Following Earnings Beat

Key Points

• Wayfair shares surged 25.8%, opening at $109.92 after closing at $89.31, following quarterly earnings that exceeded expectations.
• The company reported adjusted earnings of $0.95 per share versus the $0.90 consensus estimate, while revenue reached $3.52 billion, up 7.5% year over year and above forecasts.
• Analyst sentiment remains moderately positive, with MarketBeat reporting an average rating of “Moderate Buy” and a $100.64 average price target, although recent ratings included downgrades and “hold” recommendations.

Wayfair Inc. (NYSE:W - Get Free Report)'s share price gapped up prior to trading on Tuesday following a better than expected earnings announcement. The stock had previously closed at $89.31, but opened at $109.92. Wayfair shares last traded at $113.5960, with a volume of 3,136,429 shares trading hands.

The company reported $0.95 earnings per share for the quarter, beating the consensus estimate of $0.90 by $0.05. Wayfair had a negative net margin of 2.41% and a negative return on equity of 2.20%. The company had revenue of $3.52 billion during the quarter, compared to the consensus estimate of $3.47 billion. During the same period last year, the firm earned $0.87 earnings per share. Wayfair's revenue was up 7.5% compared to the same quarter last year.

Analyst Upgrades and Downgrades

Several research analysts recently weighed in on the company. Needham & Company LLC dropped their target price on Wayfair from $125.00 to $83.00 and set a "buy" rating on the stock in a research note on Friday, May 1st. Benchmark assumed coverage on Wayfair in a research note on Tuesday, July 7th. They issued a "hold" rating for the company. Zacks Research downgraded Wayfair from a "strong-buy" rating to a "hold" rating in a report on Monday, July 20th. Truist Financial set a $99.00 price target on Wayfair in a research note on Monday, June 8th. Finally, Royal Bank Of Canada restated a "sector perform" rating and set a $78.00 price target on shares of Wayfair in a research note on Wednesday, July 29th. One investment analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating, eleven have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $100.64.

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 value of $570,518.25. Following the completion of the transaction, the insider directly owned 117,344 shares in the company, valued at $11,299,053.76. This trade represents a 4.81% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. 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 currently owned by insiders.

Institutional Investors Weigh In On Wayfair

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

Wayfair Stock Up 25.8%

The company has a market capitalization of $14.83 billion, a price-to-earnings ratio of -48.02, a P/E/G ratio of 4.56 and a beta of 2.99. The business's 50-day moving average is $84.49 and its 200-day moving average is $81.95.

Wayfair Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.