Wayfair (NYSE:W) CEO Niraj Shah Sells 69,000 Shares of Company Stock

Wayfair Inc. (NYSE:W) CEO Niraj Shah sold 69,000 shares of the firm’s stock in a transaction dated Monday, October 12th. The stock was sold at an average price of $105.75, for a total transaction of $7,296,750.00. Following the sale, the chief executive officer owned 222,137 shares of the company’s stock, valued at approximately $23,490,987.75. The trade was a 23.70% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Niraj Shah also recently made the following trade(s):

• On Monday, September 14th, Niraj Shah sold 69,000 shares of Wayfair stock. The stock was sold at an average price of $103.35, for a total transaction of $7,131,150.00.
• On Wednesday, August 12th, Niraj Shah sold 69,000 shares of Wayfair stock. The shares were sold at an average price of $103.36, for a total transaction of $7,131,840.00.

Wayfair Price Performance

NYSE:W opened at $104.82 on Thursday. The company’s 50-day moving average is $102.34 and its two-hundred day moving average is $87.16. Wayfair Inc. has a 1-year low of $55.60 and a 1-year high of $119.98. The firm has a market capitalization of $13.84 billion, a price-to-earnings ratio of 220.39, a PEG ratio of 3.88 and a beta of 3.02.

Wayfair (NYSE:W) last announced its quarterly earnings results on Tuesday, August 4th. The company reported $0.95 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.90 by $0.05. The business had revenue of $3.52 billion during the quarter, compared to the consensus estimate of $3.47 billion. Wayfair had a negative net margin of 2.49% and a negative return on equity of 3.40%. The business’s revenue was up 7.5% compared to the same quarter last year. During the same quarter last year, the firm earned $0.87 EPS. As a group, equities analysts anticipate that Wayfair Inc. will post 0.93 earnings per share for the current fiscal year.

Key Wayfair News

Here are the key news stories impacting Wayfair this week:

• Positive Sentiment: Perigold launches loyalty program: Wayfair’s luxury-home brand introduced Perigold Insider, offering members 10% back in rewards on eligible purchases. The program could support repeat purchases, customer retention and growth in the higher-end home-furnishings market, although the rewards may also pressure margins. Introducing Perigold Insider, an Elevated Loyalty Program Designed for Luxury Home
• Neutral Sentiment: Routine promotional coverage: Articles highlighting discounts on Wayfair products, including furniture and seasonal décor, may increase near-term visibility and shopping interest but do not provide material information about revenue, profitability or guidance. Wayfair cat tree promotion Wayfair lamp promotion
• Negative Sentiment: CEO and director sold substantial stakes: CEO Niraj Shah and Director Steven Conine each sold 69,000 shares at an average price of $105.75, reducing their direct holdings by roughly 24% apiece. Both transactions were conducted under pre-arranged Rule 10b5-1 plans, which makes them less indicative of a discretionary bearish view, but the combined $14.6 million in sales can still weigh on sentiment.
• Negative Sentiment: Reported UK consumer-protection penalty: Wayfair was reportedly among companies fined as part of a combined £6 million penalty involving alleged misleading “sale” pricing and hidden fees. The report raises concerns about regulatory compliance, customer trust and potential reputational costs. Wayfair, Appliances Direct and Gold’s Gym fined for misleading sales practices

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the company. Fortitude Family Office LLC grew its holdings in shares of Wayfair by 144.7% in the third quarter. Fortitude Family Office LLC now owns 460 shares of the company’s stock valued at $47,000 after purchasing an additional 272 shares in the last quarter. IFP Advisors Inc increased its stake in Wayfair by 79.2% during the 2nd quarter. IFP Advisors Inc now owns 810 shares of the company’s stock worth $75,000 after buying an additional 358 shares during the period. ABS Direct Equity Fund LLC acquired a new stake in Wayfair during the 1st quarter worth approximately $83,000. Polaris Financial Partners acquired a new stake in Wayfair during the 3rd quarter worth approximately $113,000. Finally, Parallel Advisors LLC lifted its holdings in Wayfair by 18.6% during the 1st quarter. Parallel Advisors LLC now owns 1,661 shares of the company’s stock worth $125,000 after buying an additional 261 shares in the last quarter. 89.67% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

Several equities research analysts have issued reports on the company. Guggenheim raised their target price on Wayfair from $100.00 to $135.00 and gave the stock a “buy” rating in a research note on Wednesday, August 5th. BMO Capital Markets lifted their target price on Wayfair from $105.00 to $115.00 and gave the company a “market perform” rating in a research report on Wednesday, August 5th. UBS Group upped their price target on Wayfair from $118.00 to $156.00 and gave the company a “buy” rating in a research note on Wednesday, August 5th. Needham & Company LLC increased their price target on Wayfair from $83.00 to $133.00 and gave the stock a “buy” rating in a report on Wednesday, August 5th. Finally, Rosenblatt Securities started coverage on Wayfair in a report on Thursday, August 20th. They set a “buy” rating and a $125.00 price target for the company. Two investment analysts have rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, eleven have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $120.93.

About Wayfair

Wayfair Inc is an e-commerce company specializing in home furnishings and household goods. Through its online platforms, the company offers furniture, décor, lighting, rugs, mattresses, appliances, kitchen and bath products, outdoor items, and other products for residential and commercial spaces.

Wayfair operates its flagship Wayfair brand alongside specialty retail brands such as Joss & Main, AllModern, Birch Lane, and Perigold. Its platform connects customers with a broad network of suppliers and provides product discovery, ordering, delivery, customer service, and related home-shopping services.