Warby Parker (NYSE:WRBY) Shares Gap Down Following Weak Earnings

Warby Parker Inc. (NYSE:WRBY) gapped down prior to trading on Thursday following a dissappointing earnings announcement. The stock had previously closed at $29.27, but opened at $25.07. Warby Parker shares last traded at $26.1330, with a volume of 756,984 shares.

The company reported $0.04 EPS for the quarter, missing the consensus estimate of $0.10 by ($0.06). Warby Parker had a net margin of 0.15% and a return on equity of 2.30%. The firm had revenue of $235.51 million during the quarter, compared to analyst estimates of $237.98 million. During the same quarter in the prior year, the firm posted ($0.01) EPS. The firm’s revenue for the quarter was up 9.6% on a year-over-year basis.

Analyst Upgrades and Downgrades

A number of equities analysts have commented on the company. Weiss Ratings raised Warby Parker from a “sell (d)” rating to a “hold (c-)” rating in a research note on Monday, May 11th. Telsey Advisory Group lifted their price target on Warby Parker from $32.00 to $33.00 and gave the company an “outperform” rating in a report on Friday, May 8th. Bank of America initiated coverage on shares of Warby Parker in a research report on Monday, June 29th. They set a “buy” rating and a $33.00 price target on the stock. Piper Sandler reissued an “overweight” rating on shares of Warby Parker in a report on Tuesday, May 19th. Finally, Citigroup restated a “market outperform” rating on shares of Warby Parker in a research report on Friday, May 22nd. Nine equities research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company’s stock. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $30.18.

Insiders Place Their Bets

In other Warby Parker news, Director Bradley E. Singer sold 4,833 shares of Warby Parker stock in a transaction that occurred on Thursday, May 14th. The shares were sold at an average price of $29.01, for a total value of $140,205.33. Following the transaction, the director owned 100,000 shares of the company’s stock, valued at approximately $2,901,000. The trade was a 4.61% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, CEO Neil Harris Blumenthal sold 9,200 shares of the company’s stock in a transaction on Monday, July 6th. The stock was sold at an average price of $29.99, for a total transaction of $275,908.00. Following the completion of the transaction, the chief executive officer directly owned 31,112 shares of the company’s stock, valued at approximately $933,048.88. The trade was a 22.82% decrease in their ownership of the stock. 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 quarter, insiders sold 366,207 shares of company stock worth $10,814,738. 16.80% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of WRBY. AQR Capital Management LLC raised its position in Warby Parker by 101.0% in the 1st quarter. AQR Capital Management LLC now owns 171,271 shares of the company’s stock valued at $3,122,000 after buying an additional 86,053 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its stake in shares of Warby Parker by 4.6% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 52,690 shares of the company’s stock worth $961,000 after acquiring an additional 2,297 shares in the last quarter. Goldman Sachs Group Inc. grew its stake in shares of Warby Parker by 96.8% during the 1st quarter. Goldman Sachs Group Inc. now owns 1,888,817 shares of the company’s stock worth $34,433,000 after acquiring an additional 929,073 shares in the last quarter. Caxton Associates LLP acquired a new stake in shares of Warby Parker in the first quarter valued at approximately $252,000. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its holdings in shares of Warby Parker by 17.6% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 257,020 shares of the company’s stock valued at $4,685,000 after purchasing an additional 38,395 shares during the last quarter. 93.24% of the stock is owned by institutional investors and hedge funds.

Warby Parker Price Performance

The stock’s 50-day moving average price is $26.58 and its 200 day moving average price is $25.10. The firm has a market cap of $2.75 billion, a P/E ratio of 1,280.29, a price-to-earnings-growth ratio of 6.22 and a beta of 1.92.

Warby Parker Company Profile

Warby Parker, Inc (NYSE: WRBY) is a U.S.-based eyewear company that designs, manufactures and sells prescription glasses, sunglasses and contact lenses through a direct-to-consumer model. Since its founding, the company has combined online and brick-and-mortar channels to streamline the customer experience, offering features such as virtual try-on technology and a home try-on program that allows consumers to sample frames before purchase.

Established in 2010 by Wharton graduates Neil Blumenthal, Dave Gilboa, Andrew Hunt and Jeffrey Raider, Warby Parker set out to disrupt the traditional optical market by controlling the entire supply chain—from frame design and lens production to warehousing and distribution.