Wayfair (NYSE:W) Shares Gap Down – Should You Sell?

Wayfair Inc. (NYSE:W)’s share price gapped down before the market opened on Thursday . The stock had previously closed at $91.48, but opened at $76.83. Wayfair shares last traded at $83.1510, with a volume of 3,929,941 shares trading hands.

Wayfair News Summary

Here are the key news stories impacting Wayfair this week:

• Positive Sentiment: Market tailwind — A Supreme Court decision blocking parts of the Trump tariff plan spurred a rally in retail names, helping push Wayfair shares higher along with peers in the afternoon session. Today’s Stock Market Angi, Bumble, Match Group, Wayfair, and Shutterstock Shares Skyrocket
• Positive Sentiment: Earnings beat — Wayfair reported Q4 EPS of $0.85 and revenue up ~6.9% Y/Y, topping consensus and marking the company’s first annual sales gain since 2020, a fundamental positive for investors. Wayfair Q4 Earnings & Revenues Beat Estimates
• Neutral Sentiment: Guidance & strategy — Management outlined mid-single-digit Q1 revenue growth and plans to expand physical retail and loyalty programs; that supports growth but may raise near-term investment needs. Wayfair outlines mid-single-digit Q1 revenue growth
• Neutral Sentiment: Mixed analyst reactions — Several firms trimmed price targets (JPMorgan, Truist, Stifel, Wedbush) while Needham reaffirmed a $125 target; the cuts temper enthusiasm but several analysts still see upside. Analyst PTs Lowered Benzinga
• Negative Sentiment: Customer-growth concerns — Investors focused on signs of active-customer softness despite top-line beats; that worry triggered a sharp post-earnings reaction and capped gains. Highly Shorted Wayfair Sinks
• Negative Sentiment: Margin & investment risk — Management warned that planned investments and store expansion could pressure margins; that message, highlighted in coverage, is a key reason some investors sold into the rally. Wayfair’s stock sinks Wayfair warns investment plans could pressure margins

Wall Street Analysts Forecast Growth

A number of equities research analysts recently commented on the company. Citigroup lifted their target price on Wayfair from $105.00 to $135.00 and gave the stock a “buy” rating in a report on Wednesday, October 29th. Piper Sandler restated an “overweight” rating and set a $125.00 price objective on shares of Wayfair in a research note on Friday. Morgan Stanley upped their price objective on shares of Wayfair from $130.00 to $140.00 and gave the company an “overweight” rating in a report on Thursday, January 15th. The Goldman Sachs Group set a $92.00 price objective on shares of Wayfair in a research note on Friday. Finally, BMO Capital Markets set a $110.00 target price on shares of Wayfair and gave the stock a “market perform” rating in a report on Wednesday, October 29th. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating, eleven have assigned a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $106.17.

Wayfair Stock Performance

The firm has a market cap of $10.58 billion, a price-to-earnings ratio of -33.41, a PEG ratio of 7.60 and a beta of 3.36. The business’s 50 day moving average price is $101.66 and its 200 day moving average price is $93.51.

Insider Activity

In other news, insider Steven Conine sold 150,000 shares of the firm’s stock in a transaction dated Friday, January 23rd. The stock was sold at an average price of $108.87, for a total transaction of $16,330,500.00. Following the sale, the insider directly owned 289,073 shares in the company, valued at $31,471,377.51. This trade represents a 34.16% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Niraj Shah sold 150,000 shares of Wayfair stock in a transaction dated Friday, January 23rd. The shares were sold at an average price of $108.87, for a total value of $16,330,500.00. Following the completion of the transaction, the chief executive officer owned 289,137 shares of the company’s stock, valued at approximately $31,478,345.19. This represents a 34.16% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 950,494 shares of company stock worth $100,127,813 over the last three months. Corporate insiders own 21.91% of the company’s stock.

Institutional Trading of Wayfair

Several institutional investors have recently bought and sold shares of the business. Y Intercept Hong Kong Ltd purchased a new position in Wayfair during the second quarter valued at $1,512,000. Concurrent Investment Advisors LLC purchased a new stake in shares of Wayfair during the third quarter worth about $3,332,000. Great Lakes Advisors LLC acquired a new position in shares of Wayfair during the 3rd quarter worth about $3,946,000. Range Financial Group LLC acquired a new position in shares of Wayfair during the 3rd quarter worth about $1,330,000. Finally, Hook Mill Capital Partners LP purchased a new position in Wayfair in the 2nd quarter valued at about $39,965,000. 89.67% of the stock is owned by institutional investors and hedge funds.

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.