Wayfair (NYSE:W) Shares Gap Up – Should You Buy?

Wayfair Inc. (NYSE:W) shares gapped up before the market opened on Monday . The stock had previously closed at $32.79, but opened at $38.19. Wayfair shares last traded at $39.71, with a volume of 2,636,030 shares.

Wall Street Analyst Weigh In

A number of research analysts recently issued reports on the stock. The Goldman Sachs Group decreased their price target on shares of Wayfair from $50.00 to $31.00 and set a “neutral” rating for the company in a research note on Tuesday, April 22nd. Stifel Nicolaus cut their price target on shares of Wayfair from $46.00 to $29.00 and set a “hold” rating for the company in a report on Wednesday, April 23rd. Needham & Company LLC restated a “buy” rating and set a $50.00 price objective on shares of Wayfair in a report on Thursday, May 1st. Canaccord Genuity Group dropped their price target on shares of Wayfair from $68.00 to $58.00 and set a “buy” rating on the stock in a research note on Monday, April 28th. Finally, Jefferies Financial Group raised shares of Wayfair from a “hold” rating to a “buy” rating and lifted their price target for the company from $45.00 to $47.00 in a report on Friday, March 7th. One investment analyst has rated the stock with a sell rating, twelve have given a hold rating, eleven have issued a buy rating and one has assigned a strong buy rating to the company. Based on data from MarketBeat.com, Wayfair currently has an average rating of “Hold” and an average target price of $44.13.

Wayfair Stock Performance

The company has a market cap of $4.95 billion, a PE ratio of -9.69 and a beta of 2.93. The company has a fifty day moving average of $30.86 and a two-hundred day moving average of $40.06.

Wayfair (NYSE:W) last posted its quarterly earnings data on Thursday, May 1st. The company reported $0.10 EPS for the quarter, beating analysts’ consensus estimates of ($0.14) by $0.24. The business had revenue of $2.73 billion during the quarter, compared to analysts’ expectations of $2.71 billion. During the same quarter last year, the firm earned ($0.32) earnings per share. The firm’s quarterly revenue was up .0% compared to the same quarter last year. On average, equities analysts forecast that Wayfair Inc. will post -2.54 EPS for the current year.

Insider Activity at Wayfair

In other news, insider Steven Conine sold 30,000 shares of the company’s stock in a transaction dated Thursday, February 20th. The stock was sold at an average price of $46.33, for a total value of $1,389,900.00. Following the completion of the sale, the insider now owns 559,073 shares of the company’s stock, valued at $25,901,852.09. This represents a 5.09% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Jon Blotner sold 19,257 shares of Wayfair stock in a transaction dated Wednesday, April 2nd. The stock was sold at an average price of $31.68, for a total value of $610,061.76. Following the sale, the insider now directly owns 78,308 shares in the company, valued at approximately $2,480,797.44. The trade was a 19.74% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 92,915 shares of company stock worth $3,389,028 in the last three months. Insiders own 21.91% of the company’s stock.

Institutional Trading of Wayfair

Institutional investors have recently made changes to their positions in the stock. Capital World Investors boosted its holdings in Wayfair by 6.2% in the fourth quarter. Capital World Investors now owns 13,506,200 shares of the company’s stock worth $598,596,000 after purchasing an additional 782,757 shares in the last quarter. Vanguard Group Inc. raised its stake in shares of Wayfair by 3.6% in the fourth quarter. Vanguard Group Inc. now owns 9,315,337 shares of the company’s stock valued at $412,856,000 after acquiring an additional 327,603 shares during the last quarter. Baillie Gifford & Co. grew its holdings in shares of Wayfair by 13.6% during the fourth quarter. Baillie Gifford & Co. now owns 6,179,761 shares of the company’s stock worth $273,887,000 after purchasing an additional 740,641 shares during the last quarter. Renaissance Technologies LLC raised its stake in shares of Wayfair by 17.9% in the fourth quarter. Renaissance Technologies LLC now owns 3,834,667 shares of the company’s stock worth $169,952,000 after acquiring an additional 581,000 shares during the last quarter. Finally, Southpoint Capital Advisors LP increased its stake in shares of Wayfair by 100.0% in the 4th quarter. Southpoint Capital Advisors LP now owns 2,800,000 shares of the company’s stock valued at $124,096,000 after buying an additional 1,400,000 shares during the period. 89.67% of the stock is owned by institutional investors and hedge funds.

About Wayfair

Wayfair Inc provides e-commerce business in the United States and internationally. The company offers approximately thirty million products for the home sector. It offers online selections of furniture, décor, housewares, and home improvement products through its sites consisting of Wayfair, Joss & Main, AllModern, Birch Lane, Perigold, and Wayfair Professional.