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

Wayfair Inc. (NYSE:W) shares gapped up prior to trading on Tuesday following a stronger than expected earnings report. 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.

The company reported $0.95 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.90 by $0.05. The business had revenue of $3.52 billion during the quarter, compared to analysts’ expectations of $3.47 billion. Wayfair had a negative return on equity of 2.20% and a negative net margin of 2.41%.The company’s revenue for the quarter was up 7.5% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.87 EPS.

Analysts Set New Price Targets

A number of brokerages have recently commented on W. Truist Financial set a $99.00 price objective on shares of Wayfair in a research note on Monday, June 8th. The Goldman Sachs Group set a $79.00 price target on shares of Wayfair in a report on Friday, May 1st. TD Cowen dropped their price target on shares of Wayfair from $88.00 to $75.00 and set a “hold” rating on the stock in a research report on Thursday, April 30th. Citigroup decreased their price objective on shares of Wayfair from $110.00 to $95.00 and set a “buy” rating for the company in a research report on Tuesday, May 19th. Finally, Jefferies Financial Group lowered their target price on shares of Wayfair from $86.00 to $70.00 and set a “hold” rating on the stock in a research note on Thursday, April 30th. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, eleven have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, Wayfair presently has an average rating of “Moderate Buy” and a consensus price target of $100.64.

Insider Activity

In other news, insider Jon Blotner sold 5,925 shares of the business’s stock in a transaction dated Thursday, July 2nd. The shares were sold at an average price of $96.29, for a total transaction of $570,518.25. Following the completion of the sale, the insider owned 117,344 shares of the company’s stock, valued at $11,299,053.76. The trade was a 4.81% decrease in their ownership of the stock. 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. 18.44% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of W. Optas LLC grew its stake in shares of Wayfair by 2.1% in the fourth quarter. Optas LLC now owns 5,057 shares of the company’s stock worth $508,000 after acquiring an additional 106 shares in the last quarter. Larson Financial Group LLC boosted its holdings in Wayfair by 30.0% in 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. State of Alaska Department of Revenue boosted its holdings in Wayfair by 2.3% in the fourth quarter. State of Alaska Department of Revenue now owns 5,418 shares of the company’s stock valued at $544,000 after purchasing an additional 124 shares during the period. Kestra Private Wealth Services LLC grew its stake in Wayfair by 4.7% during the 4th quarter. Kestra Private Wealth Services LLC now owns 3,435 shares of the company’s stock worth $345,000 after purchasing an additional 155 shares in the last quarter. Finally, Parallel Advisors LLC grew its stake in Wayfair by 12.8% during the 4th quarter. Parallel Advisors LLC now owns 1,400 shares of the company’s stock worth $141,000 after purchasing an additional 159 shares in the last quarter. 89.67% of the stock is owned by hedge funds and other institutional investors.

Wayfair Trading Up 25.8%

The company has a fifty day simple moving average of $84.49 and a two-hundred day simple moving average of $81.95. The company has a market cap of $14.83 billion, a PE ratio of -48.02, a P/E/G ratio of 4.56 and a beta of 2.99.

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.