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

Warby Parker Inc. (NYSE:WRBY)’s share price gapped down before the market opened 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 traded.

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

Wall Street Analyst Weigh In

WRBY has been the topic of a number of research analyst reports. BTIG Research raised their target price on shares of Warby Parker from $32.00 to $34.00 and gave the company a “buy” rating in a research note on Thursday, May 7th. Piper Sandler restated an “overweight” rating on shares of Warby Parker in a report on Tuesday, May 19th. Weiss Ratings raised Warby Parker from a “sell (d)” rating to a “hold (c-)” rating in a research report on Monday, May 11th. Telsey Advisory Group lifted their price objective on Warby Parker from $32.00 to $33.00 and gave the stock an “outperform” rating in a research note on Friday, May 8th. Finally, UBS Group increased their target price on Warby Parker from $25.00 to $27.00 and gave the company a “neutral” rating in a research note on Friday, May 8th. Nine analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $30.18.

Insider Activity at Warby Parker

In other news, Director Youngme E. Moon sold 10,000 shares of the company’s stock in a transaction dated Friday, June 12th. The shares were sold at an average price of $26.53, for a total transaction of $265,300.00. Following the completion of the transaction, the director owned 26,061 shares of the company’s stock, valued at approximately $691,398.33. This represents a 27.73% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Neil Harris Blumenthal sold 217,667 shares of the stock in a transaction dated Wednesday, July 1st. The shares were sold at an average price of $29.61, for a total transaction of $6,445,119.87. Following the completion of the sale, the chief executive officer owned 31,112 shares of the company’s stock, valued at approximately $921,226.32. The trade was a 87.49% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 366,207 shares of company stock valued at $10,814,738 in the last 90 days. 16.80% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the company. First Horizon Corp increased its holdings in Warby Parker by 96.7% in the 4th quarter. First Horizon Corp now owns 1,210 shares of the company’s stock valued at $26,000 after buying an additional 595 shares during the period. EverSource Wealth Advisors LLC lifted its holdings in shares of Warby Parker by 105.7% during the 1st quarter. EverSource Wealth Advisors LLC now owns 1,310 shares of the company’s stock worth $28,000 after acquiring an additional 673 shares during the period. Eagle Bay Advisors LLC acquired a new stake in shares of Warby Parker during the 4th quarter valued at about $35,000. Farther Finance Advisors LLC boosted its position in shares of Warby Parker by 41.4% during the 4th quarter. Farther Finance Advisors LLC now owns 1,687 shares of the company’s stock valued at $37,000 after acquiring an additional 494 shares in the last quarter. Finally, Parallel Advisors LLC increased its stake in Warby Parker by 110.7% in the first quarter. Parallel Advisors LLC now owns 1,837 shares of the company’s stock valued at $39,000 after acquiring an additional 965 shares during the period. 93.24% of the stock is currently owned by institutional investors and hedge funds.

Warby Parker Stock Down 12.3%

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

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.