Royal Bank of Canada Has $9.88 Million Holdings in Wayfair Inc. $W

Royal Bank of Canada lessened its stake in Wayfair Inc. (NYSE:W) by 60.8% in the first quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 131,359 shares of the company’s stock after selling 203,835 shares during the quarter. Royal Bank of Canada’s holdings in Wayfair were worth $9,878,000 as of its most recent SEC filing.

Several other hedge funds have also recently added to or reduced their stakes in W. Capital World Investors grew its position in shares of Wayfair by 0.6% during the 4th quarter. Capital World Investors now owns 13,457,158 shares of the company’s stock worth $1,351,237,000 after buying an additional 82,584 shares during the period. Vanguard Group Inc. increased its stake in shares of Wayfair by 0.8% in the 4th quarter. Vanguard Group Inc. now owns 9,634,757 shares of the company’s stock valued at $967,426,000 after acquiring an additional 72,707 shares during the last quarter. Renaissance Technologies LLC raised its position in shares of Wayfair by 3.5% in the 4th quarter. Renaissance Technologies LLC now owns 5,407,325 shares of the company’s stock valued at $542,950,000 after acquiring an additional 180,558 shares during the period. Janus Henderson Group PLC raised its position in shares of Wayfair by 4.9% in the 4th quarter. Janus Henderson Group PLC now owns 3,570,475 shares of the company’s stock valued at $358,514,000 after acquiring an additional 166,855 shares during the period. Finally, Arrowstreet Capital Limited Partnership boosted its stake in Wayfair by 0.3% during the 4th quarter. Arrowstreet Capital Limited Partnership now owns 2,825,654 shares of the company’s stock worth $283,724,000 after acquiring an additional 8,598 shares during the last quarter. Institutional investors and hedge funds own 89.67% of the company’s stock.

Wayfair News Roundup

Here are the key news stories impacting Wayfair this week:

• Positive Sentiment: Analyst optimism increased. BMO, UBS and Wedbush issued positive forecasts, while Needham raised its price target to $133 and Wells Fargo lifted its target to $130. RBC also expects further appreciation, reinforcing bullish sentiment after the earnings report. BMO Capital Markets Forecasts Strong Price Appreciation for Wayfair Needham Raises Wayfair Price Target Wells Fargo Boosts Wayfair Price Target
• Positive Sentiment: Better-than-expected Q2 results remain the primary catalyst. Wayfair reported adjusted EPS of $0.95 versus a $0.90 consensus estimate and revenue of $3.52 billion versus expectations of $3.47 billion. Revenue increased 7.5% year over year, raising investor expectations that sustained growth and cost controls could move the company closer to consistent profitability. Wayfair Shares Gap Up on Earnings Beat Wayfair Q2 Results Beat Forecasts
• Positive Sentiment: Expansion into physical retail could broaden customer reach. Wayfair plans to open outlet stores in Dublin, Ohio, and North Hills, Pennsylvania, giving the online furniture retailer additional channels to sell inventory and attract shoppers. Wayfair Outlet to Open in Dublin Wayfair Opening North Hills Store
• Neutral Sentiment: Reports indicate affluent consumers are supporting Wayfair’s profit gains despite economic uncertainty, while the company is finding growth in weaker housing markets. This supports demand resilience but may leave the business exposed if higher-income consumer spending slows. Rich Consumers Drive Wayfair Profit Gains
• Negative Sentiment: A nationwide recall involving furniture sold through Wayfair after a toddler was injured creates a potential reputational, customer-safety and liability risk, although the direct financial impact is not yet clear. Nationwide Furniture Recall

Analyst Upgrades and Downgrades

A number of research analysts recently issued reports on the stock. BMO Capital Markets boosted their price objective on shares of Wayfair from $105.00 to $115.00 and gave the company a “market perform” rating in a report on Wednesday, August 5th. Canaccord Genuity Group cut their target price on shares of Wayfair from $125.00 to $115.00 and set a “buy” rating on the stock in a report on Friday, May 1st. Truist Financial lifted their price target on shares of Wayfair from $99.00 to $135.00 and gave the stock a “buy” rating in a research report on Tuesday, August 4th. Wells Fargo & Company boosted their price target on shares of Wayfair from $100.00 to $130.00 and gave the company an “overweight” rating in a report on Wednesday, August 5th. Finally, Benchmark started coverage on shares of Wayfair in a research report on Tuesday, July 7th. They issued a “hold” rating for the company. One equities research analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating, eleven have assigned a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average target price of $118.04.

Wayfair Stock Performance

NYSE W opened at $106.91 on Monday. The business has a 50 day simple moving average of $87.39 and a 200 day simple moving average of $81.76. Wayfair Inc. has a 52-week low of $55.60 and a 52-week high of $119.98. The stock has a market cap of $14.11 billion, a price-to-earnings ratio of -43.46, a PEG ratio of 5.73 and a beta of 2.99.

Wayfair (NYSE:W) last announced its quarterly earnings results on Tuesday, August 4th. The company reported $0.95 earnings per share for the quarter, beating analysts’ consensus estimates of $0.90 by $0.05. The firm had revenue of $3.52 billion for the quarter, compared to analyst estimates 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% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.87 earnings per share. On average, analysts predict that Wayfair Inc. will post 0.62 EPS for the current year.

Insider Activity at Wayfair

In related news, insider Jon Blotner sold 5,925 shares of the firm’s stock in a transaction on Thursday, July 2nd. The shares were sold at an average price of $96.29, for a total transaction of $570,518.25. Following the sale, the insider directly owned 117,344 shares in the company, valued at $11,299,053.76. This trade represents a 4.81% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. 18.44% of the stock is currently owned by insiders.

About Wayfair

Wayfair Inc (NYSE: W) is an e-commerce company focused on home furnishings and décor. Through its platform, Wayfair offers a broad assortment of furniture, lighting, home textiles, kitchenware and decorative accessories. The company’s portfolio includes flagship sites such as Wayfair.com, as well as specialty retail brands like Joss & Main, AllModern, Birch Lane and Perigold, each catering to distinct design styles and price points.

Founded in 2002 by Niraj Shah and Steve Conine under the name CSN Stores, the business rebranded as Wayfair in 2011 and went public in 2014.