Zacks Investment Research Lowers Wayfair (W) to Hold

Wayfair (NYSE:W) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued on Monday.

According to Zacks, “Wayfair is benefiting from its strengthening direct retail business across the United States and international regions. Further growing number of orders from new as well as repeated customers indicates the company’s solid momentum in the market. The company stays confident about its growth in markets, namely, Canada, U.K. and Germany as it has made strong advances to expand its house-brand offerings in these countries. Additionally, the launch of French language site and CastleGate facility in Canada remains positive. Notably, the stock has outperformed the industry it belongs to in the past 12 months. However, increasing advertising expenditures and mounting investment expenses pose a risk to margin expansion.”

Several other equities research analysts have also weighed in on W. Wedbush reissued a “neutral” rating and set a $100.00 target price (down previously from $105.00) on shares of Wayfair in a research report on Monday, October 29th. Wolfe Research cut their target price on Wayfair from $143.00 to $135.00 and set an “outperform” rating on the stock in a research report on Friday, November 2nd. Robert W. Baird cut their target price on Wayfair from $118.00 to $108.00 and set a “neutral” rating on the stock in a research report on Friday, November 2nd. Canaccord Genuity cut their target price on Wayfair from $165.00 to $150.00 and set a “buy” rating on the stock in a research report on Friday, November 2nd. Finally, Citigroup cut their target price on Wayfair from $140.00 to $105.00 and set a “neutral” rating on the stock in a research report on Friday, November 2nd. One research analyst has rated the stock with a sell rating, twelve have given a hold rating, ten have given a buy rating and one has assigned a strong buy rating to the stock. Wayfair presently has an average rating of “Hold” and an average price target of $125.35.



W stock traded down $1.10 during mid-day trading on Monday, reaching $119.32. The company had a trading volume of 48,194 shares, compared to its average volume of 1,436,241. The firm has a market capitalization of $10.83 billion, a P/E ratio of -42.61 and a beta of 1.89. Wayfair has a fifty-two week low of $60.53 and a fifty-two week high of $151.20.

In other news, insider Steven Conine sold 14,000 shares of Wayfair stock in a transaction that occurred on Monday, February 4th. The shares were sold at an average price of $111.25, for a total value of $1,557,500.00. Following the completion of the transaction, the insider now owns 51,650 shares in the company, valued at $5,746,062.50. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Edmond Macri sold 600 shares of Wayfair stock in a transaction that occurred on Tuesday, November 13th. The shares were sold at an average price of $93.06, for a total transaction of $55,836.00. Following the completion of the transaction, the insider now owns 500 shares of the company’s stock, valued at approximately $46,530. The disclosure for this sale can be found here. Over the last three months, insiders have sold 112,193 shares of company stock worth $11,360,015. 37.75% of the stock is owned by company insiders.

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Legal & General Group Plc grew its holdings in shares of Wayfair by 32.9% in the 3rd quarter. Legal & General Group Plc now owns 34,190 shares of the company’s stock valued at $5,049,000 after buying an additional 8,466 shares during the period. Paloma Partners Management Co acquired a new position in shares of Wayfair in the 3rd quarter valued at $500,000. Bridgeway Capital Management Inc. acquired a new position in shares of Wayfair in the 3rd quarter valued at $4,268,000. United Services Automobile Association grew its holdings in shares of Wayfair by 7.8% in the 2nd quarter. United Services Automobile Association now owns 6,685 shares of the company’s stock valued at $794,000 after buying an additional 483 shares during the period. Finally, Virtu Financial LLC acquired a new position in shares of Wayfair in the 4th quarter valued at $259,000. 72.05% of the stock is owned by hedge funds and other institutional investors.

Wayfair Company Profile

Wayfair Inc engages in the e-commerce business in the United States, Europe, and internationally. The company offers approximately 10 million products for the home sector under various brands. It offers a selection of furniture, décor, decorative accents, housewares, seasonal décor, and other home goods through its sites, such as Wayfair, Joss & Main, AllModern, DwellStudio, Perigold, and Birch Lane.

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