Warby Parker (NYSE:WRBY) Stock Falls 9.3% – Here’s Why

Warby Parker Inc. (NYSE:WRBY) shares were down 9.3% on Thursday. The stock traded as low as $27.42 and last traded at $27.3370. Approximately 1,109,745 shares traded hands during trading, a decline of 65% from the average daily volume of 3,184,956 shares. The stock had previously closed at $30.15.

Wall Street Analysts Forecast Growth

A number of equities analysts recently weighed in on the stock. Deutsche Bank set a $29.00 target price on shares of Warby Parker in a research note on Thursday, September 17th. BTIG Research reaffirmed a “buy” rating on shares of Warby Parker in a research report on Tuesday, October 27th. Weiss Ratings downgraded Warby Parker from a “hold (c-)” rating to a “sell (d+)” rating in a report on Friday, October 23rd. Citigroup reissued a “market outperform” rating on shares of Warby Parker in a research report on Thursday, September 17th. Finally, Citizens Jmp boosted their price objective on Warby Parker from $29.00 to $40.00 and gave the company a “market outperform” rating in a research note on Friday, November 6th. One equities research 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 given a Sell rating to the company. According to data from MarketBeat, Warby Parker currently has an average rating of “Moderate Buy” and an average target price of $31.42.

Warby Parker Stock Down 9.9%

The firm has a market capitalization of $2.96 billion, a P/E ratio of 454.64, a price-to-earnings-growth ratio of 9.79 and a beta of 1.95. The company’s 50 day moving average is $25.25 and its 200-day moving average is $25.17.

Warby Parker (NYSE:WRBY) last posted its quarterly earnings results on Thursday, November 5th. The company reported $0.04 earnings per share for the quarter, missing the consensus estimate of $0.09 by ($0.05). Warby Parker had a net margin of 0.80% and a return on equity of 3.36%. The company had revenue of $244.74 million during the quarter, compared to the consensus estimate of $244.92 million. During the same period last year, the firm posted $0.05 earnings per share. The company’s revenue for the quarter was up 10.4% on a year-over-year basis. On average, analysts predict that Warby Parker Inc. will post 0.12 EPS for the current fiscal year.

Insider Activity at Warby Parker

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

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Ranger Investment Management L.P. acquired a new stake in Warby Parker in the second quarter valued at approximately $30,949,000. Public Sector Pension Investment Board raised its position in shares of Warby Parker by 96.6% during the third quarter. Public Sector Pension Investment Board now owns 679,808 shares of the company’s stock worth $17,750,000 after purchasing an additional 333,938 shares during the period. Bank of America Corp DE raised its position in shares of Warby Parker by 30.9% during the first quarter. Bank of America Corp DE now owns 1,377,646 shares of the company’s stock worth $29,027,000 after purchasing an additional 325,250 shares during the period. Atreides Management LP raised its position in shares of Warby Parker by 74.8% during the first quarter. Atreides Management LP now owns 686,995 shares of the company’s stock worth $14,475,000 after purchasing an additional 293,910 shares during the period. Finally, Landscape Capital Management L.L.C. lifted its holdings in shares of Warby Parker by 224.8% in the 3rd quarter. Landscape Capital Management L.L.C. now owns 305,024 shares of the company’s stock worth $8,474,000 after purchasing an additional 211,123 shares in the last quarter. Institutional investors own 93.24% of the company’s stock.

About Warby Parker

Warby Parker Inc. is an eyewear company that sells prescription glasses, sunglasses, and contact lenses through its website and retail stores. It also offers vision-related services, including eye exams at select locations. Founded in 2010, the company helped popularize a direct-to-consumer model for eyewear and has since expanded its network of stores. Warby Parker serves customers primarily in the United States and Canada. The company was co-founded by Neil Blumenthal, Dave Gilboa, Andrew Hunt, and Jeffrey Raider.