Wayfair (NYSE:W) Stock Falls 7.6% – Here’s Why

Wayfair Inc. (NYSE:W) traded down 7.6% during mid-day trading on Wednesday. The company traded as low as $101.92 and last traded at $99.1970. Approximately 258,938 shares changed hands during trading, a decline of 93% from the average session volume of 3,552,230 shares. The stock had previously closed at $107.35.

Analyst Upgrades and Downgrades

W has been the topic of a number of analyst reports. Rosenblatt Securities initiated coverage on shares of Wayfair in a report on Thursday, August 20th. They issued a “buy” rating and a $125.00 target price on the stock. Deutsche Bank Aktiengesellschaft reiterated a “hold” rating and set a $120.00 price target on shares of Wayfair in a research note on Wednesday, August 5th. Wedbush increased their price objective on Wayfair from $85.00 to $125.00 and gave the stock a “neutral” rating in a research note on Wednesday, August 5th. TD Cowen increased their price objective on Wayfair from $75.00 to $110.00 and gave the stock a “hold” rating in a research note on Wednesday, August 5th. Finally, Citigroup raised their target price on Wayfair from $95.00 to $133.00 and gave the company a “buy” rating in a report on Thursday, August 13th. Three research analysts have rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, ten have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $119.89.

Wayfair Stock Down 1.8%

The business’s 50-day moving average is $98.97 and its two-hundred day moving average is $84.44. The company has a market capitalization of $12.90 billion, a P/E ratio of -39.72, a price-to-earnings-growth ratio of 3.86 and a beta of 2.99.

Wayfair (NYSE:W) last released its earnings results on Tuesday, August 4th. The company reported $0.95 earnings per share (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 analyst estimates of $3.47 billion. Wayfair had a negative return on equity of 3.40% and a negative net margin of 2.49%.Wayfair’s quarterly revenue was up 7.5% on a year-over-year basis. During the same period in the prior year, the company posted $0.87 earnings per share. Analysts predict that Wayfair Inc. will post 0.93 EPS for the current year.

Insider Activity

In other news, Director Steven Conine sold 69,000 shares of the firm’s stock in a transaction that occurred on Wednesday, August 12th. The shares were sold at an average price of $103.36, for a total transaction of $7,131,840.00. Following the completion of the sale, the director owned 360,073 shares in the company, valued at $37,217,145.28. This trade represents a 16.08% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Jon Blotner sold 6,968 shares of Wayfair stock in a transaction that occurred on Tuesday, September 8th. The stock was sold at an average price of $100.22, for a total transaction of $698,332.96. Following the completion of the sale, the insider directly owned 110,376 shares in the company, valued at $11,061,882.72. This trade represents a 5.94% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 288,893 shares of company stock valued at $29,795,521 in the last three months. Company insiders own 18.44% of the company’s stock.

Institutional Trading of Wayfair

Large investors have recently bought and sold shares of the company. Assenagon Asset Management S.A. increased its stake in shares of Wayfair by 42.2% in the second quarter. Assenagon Asset Management S.A. now owns 818,591 shares of the company’s stock worth $75,654,000 after purchasing an additional 242,791 shares in the last quarter. Dockside LLC purchased a new stake in shares of Wayfair during the 4th quarter valued at approximately $1,990,000. Atreides Management LP boosted its holdings in Wayfair by 64.3% in the 1st quarter. Atreides Management LP now owns 1,430,997 shares of the company’s stock worth $107,625,000 after buying an additional 560,133 shares during the period. WINTON GROUP Ltd bought a new position in Wayfair in the 2nd quarter worth approximately $3,207,000. Finally, Moore Capital Management LP purchased a new position in Wayfair in the 4th quarter valued at approximately $19,828,000. 89.67% of the stock is owned by hedge funds and other institutional investors.

Wayfair Company Profile

Wayfair Inc is an e-commerce company focused on furniture, home furnishings and décor. Its online platform offers a broad assortment of products for rooms throughout the home, including furniture, mattresses, rugs, lighting, kitchen and dining items, outdoor furnishings, home improvement products and décor.

The company operates through the Wayfair brand and specialized retail brands such as Joss & Main, AllModern, Birch Lane and Perigold. It also serves business customers through Wayfair Professional, which provides products and services for commercial, hospitality and design-related projects.