Wayfair (NYSE:W) Stock Lifted to Strong-Buy by Zacks Research

Wayfair (NYSE:W) was upgraded by stock analysts at Zacks Research from a “hold” rating to a “strong-buy” rating in a research report issued on Tuesday, Zacks reports.

W has been the topic of several other reports. Sanford C. Bernstein reiterated an “outperform” rating on shares of Wayfair in a report on Tuesday, September 1st. Benchmark began coverage on shares of Wayfair in a report on Tuesday, July 7th. They set a “hold” rating for the company. BMO Capital Markets upped their price target on shares of Wayfair from $105.00 to $115.00 and gave the company a “market perform” rating in a research note on Wednesday, August 5th. Deutsche Bank Aktiengesellschaft reissued a “hold” rating and issued a $120.00 price target on shares of Wayfair in a report on Wednesday, August 5th. Finally, Royal Bank Of Canada raised their price objective on shares of Wayfair from $92.00 to $96.00 and gave the stock a “sector perform” rating in a research report on Friday, October 23rd. Three investment analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating, ten have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, Wayfair presently has an average rating of “Moderate Buy” and a consensus target price of $125.12.

Wayfair Trading Up 10.3%

Shares of NYSE W opened at $122.82 on Tuesday. Wayfair has a 12 month low of $55.60 and a 12 month high of $127.99. The stock has a 50 day moving average of $105.55 and a 200-day moving average of $89.17. The company has a market capitalization of $16.21 billion, a P/E ratio of -49.93, a P/E/G ratio of 3.84 and a beta of 3.10.

Wayfair (NYSE:W) last posted its quarterly earnings results on Wednesday, November 4th. The company reported $0.93 earnings per share for the quarter, beating analysts’ consensus estimates of $0.80 by $0.13. Wayfair had a negative return on equity of 3.40% and a negative net margin of 2.49%. The business had revenue of $3.42 billion for the quarter, compared to analysts’ expectations of $3.38 billion. During the same quarter in the prior year, the business earned $0.70 EPS. The firm’s revenue for the quarter was up 9.7% on a year-over-year basis. Analysts predict that Wayfair will post 0.97 EPS for the current fiscal year.

Insider Buying and Selling

In other Wayfair news, CTO Fiona Tan sold 8,000 shares of the stock in a transaction that occurred on Tuesday, October 20th. The shares were sold at an average price of $115.00, for a total transaction of $920,000.00. Following the transaction, the chief technology officer owned 196,698 shares in the company, valued at $22,620,270. This represents a 3.91% 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, CEO Niraj Shah sold 117,000 shares of the stock in a transaction that occurred on Thursday, October 15th. The stock was sold at an average price of $111.25, for a total transaction of $13,016,250.00. Following the transaction, the chief executive officer owned 105,137 shares in the company, valued at approximately $11,696,491.25. The trade was a 52.67% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 677,070 shares of company stock valued at $72,236,934. 18.44% of the stock is owned by company insiders.

Institutional Investors Weigh In On Wayfair

Several institutional investors have recently made changes to their positions in the stock. VIRGINIA RETIREMENT SYSTEMS ET Al acquired a new position in Wayfair in the 2nd quarter valued at $2,001,000. Baird Financial Group Inc. bought a new position in shares of Wayfair in the second quarter worth $16,362,000. WINTON GROUP Ltd bought a new position in shares of Wayfair in the second quarter worth $3,207,000. Assenagon Asset Management S.A. raised its stake in Wayfair by 42.2% in the second quarter. Assenagon Asset Management S.A. now owns 818,591 shares of the company’s stock valued at $75,654,000 after purchasing an additional 242,791 shares in the last quarter. Finally, Public Employees Retirement System of Ohio acquired a new position in Wayfair in the second quarter valued at about $2,874,000. 89.67% of the stock is currently owned by institutional investors.

Wayfair News Summary

Here are the key news stories impacting Wayfair this week:

• Positive Sentiment: Wayfair reported Q3 revenue of $3.42 billion, up 9.7% year over year and ahead of estimates. Earnings of $0.93 per share also topped consensus, while coverage described the quarter as the company’s strongest growth period since the pandemic. CNBC report on Wayfair Q3 results
• Positive Sentiment: U.S. revenue rose 11.4% to $3.0 billion, and reports highlighted market-share gains in a sluggish home-furnishings market. Analysts also pointed to stronger profitability, with one report describing the quarter’s margin as Wayfair’s best in six years. Why Wayfair stock is up
• Positive Sentiment: Gordon Haskett upgraded Wayfair from “hold” to “buy” and set a $160 price target, adding to the positive reaction to the earnings report. Gordon Haskett rating information
• Neutral Sentiment: A broad rally in U.S. stocks provided a supportive market backdrop, though Wayfair’s earnings and growth news appear to be the more company-specific drivers. Market rally report
• Negative Sentiment: International revenue declined 2.3% to $380 million, contrasting with U.S. growth and showing that the recovery remains uneven across markets. Wayfair Q3 results release

Wayfair Company Profile

Wayfair Inc is an e-commerce company that sells furniture, home furnishings and related products through digital platforms. Its selection includes furniture, décor, lighting, rugs, mattresses, kitchen and dining products, housewares, home improvement items, outdoor furnishings and other goods for residential and commercial spaces.

The company operates a portfolio of online brands and retail websites, including Wayfair, Joss & Main, AllModern, Birch Lane and Perigold. These brands are designed to serve different customer preferences, price points and areas of the home-furnishings market.