Warby Parker (NYSE:WRBY) Shares Gap Up – Should You Buy?

Warby Parker Inc. (NYSE:WRBY)’s share price gapped up before the market opened on Thursday. The stock had previously closed at $21.29, but opened at $25.93. Warby Parker shares last traded at $25.7450, with a volume of 1,320,903 shares changing hands.

Warby Parker News Roundup

Here are the key news stories impacting Warby Parker this week:

• Positive Sentiment: Citizens JMP raised its price target to $40 from $29 and reiterated “market outperform.” The new target implies about 56% upside from the $25.63 reference price. Citizens JMP rating
• Positive Sentiment: Management signaled 15%–20% revenue growth for Q4 and expects deliveries of its new Intelligent Eyewear to begin in mid-December, providing a possible growth driver. Q4 growth outlook and Intelligent Eyewear
• Positive Sentiment: Q3 revenue rose 10.4% year over year to $244.7 million, with active customers up 3% to 2.74 million, average revenue per customer up 6.7%, and gross margin improving to 54.4%. These trends support the growth narrative. Q3 results
• Neutral Sentiment: One report noted WRBY moved above its 200-day moving average, a potentially supportive technical signal, although it does not resolve the earnings concerns. Moving-average report
• Negative Sentiment: Profit results were less clear and may weigh on sentiment. The supplied earnings data shows $0.04 per share versus a $0.09 consensus estimate, while another report cited $0.11 and a beat—likely reflecting different earnings measures. Revenue was approximately in line with estimates. Q3 metrics comparison
• Negative Sentiment: Coverage also flagged substantial spending ahead, which could limit near-term profitability even as Warby Parker expands stores and product lines. Q3 spending outlook

Analyst Ratings Changes

A number of research analysts recently commented on WRBY shares. Citigroup reissued a “market outperform” rating on shares of Warby Parker in a research note on Thursday, September 17th. Roth Capital reaffirmed a “neutral” rating and set a $28.00 price target on shares of Warby Parker in a research note on Wednesday, August 5th. Weiss Ratings cut Warby Parker from a “hold (c-)” rating to a “sell (d+)” rating in a report on Friday, October 23rd. Citizens Jmp increased their price objective on Warby Parker from $29.00 to $40.00 and gave the company a “market outperform” rating in a research report on Friday. Finally, TD Cowen began coverage on Warby Parker in a research report on Friday, October 30th. They issued a “strong-buy” rating for the company. One analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $31.42.

Warby Parker Price Performance

The business has a 50 day moving average price of $24.91 and a 200 day moving average price of $25.12. The stock has a market capitalization of $2.77 billion, a PE ratio of 427.25, a PEG ratio of 6.47 and a beta of 1.95.

Warby Parker (NYSE:WRBY) last issued its earnings results on Thursday, November 5th. The company reported $0.04 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.09 by ($0.05). Warby Parker had a return on equity of 3.36% and a net margin of 0.85%. The firm had revenue of $244.74 million during the quarter, compared to analysts’ expectations of $244.92 million. During the same period last year, the firm posted $0.05 earnings per share. The firm’s quarterly revenue was up 10.4% on a year-over-year basis. On average, equities analysts expect that Warby Parker Inc. will post 0.12 earnings per share for the current year.

Insiders Place Their Bets

In other news, CEO Neil Blumenthal sold 100,000 shares of the stock in a transaction on Thursday, October 1st. The stock was sold at an average price of $27.69, for a total transaction of $2,769,000.00. Following the transaction, the chief executive officer directly owned 36,020 shares of the company’s stock, valued at $997,393.80. This represents a 73.52% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 16.80% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in WRBY. Gagnon Securities LLC increased its stake in Warby Parker by 25.0% during the third quarter. Gagnon Securities LLC now owns 14,222 shares of the company’s stock worth $395,000 after acquiring an additional 2,841 shares during the last quarter. Maryland State Retirement & Pension System grew its position in shares of Warby Parker by 55.7% during the 3rd quarter. Maryland State Retirement & Pension System now owns 22,937 shares of the company’s stock worth $637,000 after buying an additional 8,201 shares in the last quarter. Kornitzer Capital Management Inc. KS increased its position in Warby Parker by 52.1% during the 3rd quarter. Kornitzer Capital Management Inc. KS now owns 263,415 shares of the company’s stock valued at $7,318,000 after purchasing an additional 90,185 shares during the period. CenterBook Partners LP bought a new position in Warby Parker in the third quarter worth approximately $2,834,000. Finally, Commonwealth Equity Services LLC grew its stake in Warby Parker by 5.7% in the third quarter. Commonwealth Equity Services LLC now owns 9,273 shares of the company’s stock valued at $258,000 after purchasing an additional 498 shares during the last quarter. 93.24% of the stock is currently owned by institutional investors.

About Warby Parker

Warby Parker Inc is an optical retailer that designs, manufactures and sells prescription eyeglasses, sunglasses, contact lenses and related accessories. The company offers its products through its website, mobile applications and a growing network of retail stores, combining online shopping with in-person services such as frame fitting and eye examinations.

Founded in 2010 by Neil Blumenthal, Dave Gilboa, Andrew Hunt and Jeffrey Raider, Warby Parker was established as a direct-to-consumer eyewear company.