Zacks Research Upgrades Wayfair (NYSE:W) to Strong-Buy

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

A number of other analysts also recently issued reports on the stock. Robert W. Baird lifted their price objective on shares of Wayfair from $116.00 to $117.00 and gave the stock a “neutral” rating in a report on Thursday, October 8th. Mizuho set a $132.00 target price on Wayfair in a research note on Thursday, October 29th. BMO Capital Markets raised their price target on Wayfair from $105.00 to $115.00 and gave the company a “market perform” rating in a research report on Wednesday, August 5th. Morgan Stanley reaffirmed an “overweight” rating on shares of Wayfair in a research note on Wednesday, August 5th. Finally, Raymond James Financial reaffirmed a “strong-buy” rating and set a $135.00 price target on shares of Wayfair in a research note on Wednesday. Three research analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating, ten have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $125.12.

Wayfair Price Performance

Shares of Wayfair stock opened at $122.82 on Tuesday. Wayfair has a 1 year low of $55.60 and a 1 year high of $127.99. The firm has a market cap of $16.21 billion, a PE ratio of -49.93, a PEG ratio of 3.84 and a beta of 3.10. The company has a 50 day simple moving average of $105.55 and a two-hundred day simple moving average of $89.17.

Wayfair (NYSE:W) last released its quarterly earnings results on Wednesday, November 4th. The company reported $0.93 EPS for the quarter, topping analysts’ consensus estimates of $0.80 by $0.13. The business had revenue of $3.42 billion during the quarter, compared to analysts’ expectations of $3.38 billion. Wayfair had a negative net margin of 2.49% and a negative return on equity of 3.40%. The business’s quarterly revenue was up 9.7% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.70 EPS. As a group, research analysts anticipate that Wayfair will post 0.97 earnings per share for the current year.

Insiders Place Their Bets

In other news, CEO Niraj Shah sold 117,000 shares of the business’s stock in a transaction that occurred on Thursday, October 15th. The shares were sold at an average price of $111.25, for a total value of $13,016,250.00. Following the completion of the sale, the chief executive officer directly 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 sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Fiona Tan sold 8,000 shares of the company’s stock in a transaction 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 completion of the sale, the chief technology officer directly owned 196,698 shares of the company’s stock, valued at $22,620,270. This trade represents a 3.91% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 677,070 shares of company stock valued at $72,236,934. 18.44% of the stock is currently owned by corporate insiders.

Institutional Trading of Wayfair

Several hedge funds have recently added to or reduced their stakes in the business. Lido Advisors LLC boosted its stake in shares of Wayfair by 451.2% during the third quarter. Lido Advisors LLC now owns 16,226 shares of the company’s stock valued at $1,664,000 after purchasing an additional 13,282 shares during the period. AlphaCore Capital LLC purchased a new position in shares of Wayfair in the third quarter worth $622,000. Fulcrum Asset Management LLP purchased a new position in shares of Wayfair in the third quarter worth $6,092,000. Bryn Mawr Trust Advisors LLC bought a new stake in Wayfair during the 3rd quarter valued at $226,000. Finally, Brighton Jones LLC raised its holdings in Wayfair by 106.3% during the 3rd quarter. Brighton Jones LLC now owns 19,822 shares of the company’s stock valued at $2,033,000 after buying an additional 10,213 shares during the last quarter. 89.67% of the stock is owned by institutional investors.

Trending Headlines about Wayfair

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 earnings of $0.93 per share, beating consensus estimates. U.S. revenue rose 11.4%, and reports described the quarter as the company’s strongest growth period since the pandemic, with a profit turnaround and its best margin quarter in six years. Wayfair Q3 results
• Positive Sentiment: The company expects high-single-digit revenue growth and a 6%–7% adjusted EBITDA margin in Q4. Management also pointed to U.S. market-share gains, while an analyst argued that revenue acceleration and margin expansion could support further upside. Q4 outlook
• Positive Sentiment: Gordon Haskett upgraded Wayfair from Hold to Buy and set a $160 price target. Zacks Research also upgraded the stock from Hold to Strong Buy. Gordon Haskett rating
• Negative Sentiment: International revenue declined 2.3% year over year to $380 million, contrasting with strong U.S. growth. Wayfair Q3 results

About Wayfair

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.