Warby Parker (NYSE:WRBY) Stock Falls 6.8% – Here’s Why

Warby Parker Inc. (NYSE:WRBY)’s stock price fell 6.8% during mid-day trading on Monday. The stock traded as low as $25.50 and last traded at $24.8910. Approximately 275,744 shares were traded during trading, a decline of 91% from the average session volume of 3,064,477 shares. The stock had previously closed at $26.71.

Wall Street Analysts Forecast Growth

Several brokerages have weighed in on WRBY. UBS Group upped their target price on Warby Parker from $27.00 to $28.00 and gave the stock a “neutral” rating in a research report on Friday, August 7th. Bank of America assumed coverage on Warby Parker in a report on Monday, June 29th. They issued a “buy” rating and a $33.00 price objective on the stock. Citigroup reiterated a “market outperform” rating on shares of Warby Parker in a research note on Thursday, September 17th. Roth Capital restated a “neutral” rating and set a $28.00 price target on shares of Warby Parker in a research note on Wednesday, August 5th. Finally, Deutsche Bank Aktiengesellschaft set a $29.00 price target on shares of Warby Parker in a report on Thursday, September 17th. Seven research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company’s stock. According to MarketBeat, Warby Parker currently has an average rating of “Moderate Buy” and an average price target of $30.08.

Warby Parker Price Performance

The company has a market cap of $2.70 billion, a price-to-earnings ratio of 356.64, a P/E/G ratio of 7.24 and a beta of 1.91. The firm has a fifty day simple moving average of $25.42 and a 200 day simple moving average of $25.15.

Warby Parker (NYSE:WRBY) last issued its quarterly earnings data on Thursday, August 6th. The company reported $0.04 earnings per share for the quarter, missing analysts’ consensus estimates of $0.10 by ($0.06). The firm 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 3.36% and a net margin of 0.85%.Warby Parker’s quarterly revenue was up 9.6% compared to the same quarter last year. During the same quarter in the previous year, the firm posted ($0.01) earnings per share. Analysts expect that Warby Parker Inc. will post 0.14 earnings per share for the current year.

Insiders Place Their Bets

In other Warby Parker news, CEO Neil Blumenthal sold 217,667 shares of the company’s 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 directly owned 31,112 shares in the company, valued at $921,226.32. This represents a 87.49% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 16.80% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Warby Parker

Institutional investors have recently made changes to their positions in the business. Vaughan Nelson Investment Management L.P. boosted its stake in Warby Parker by 31.3% during the 1st quarter. Vaughan Nelson Investment Management L.P. now owns 3,028,307 shares of the company’s stock valued at $63,806,000 after purchasing an additional 722,627 shares during the period. Dimensional Fund Advisors LP increased its position in Warby Parker by 10.7% in the 1st quarter. Dimensional Fund Advisors LP now owns 1,722,577 shares of the company’s stock worth $36,291,000 after buying an additional 166,235 shares during the period. Bank of America Corp DE increased its position in Warby Parker by 30.9% in the 1st quarter. Bank of America Corp DE now owns 1,377,646 shares of the company’s stock worth $29,027,000 after buying an additional 325,250 shares during the period. Ranger Investment Management L.P. acquired a new position in shares of Warby Parker during the second quarter worth approximately $30,949,000. Finally, Atreides Management LP lifted its holdings 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 buying an additional 293,910 shares during the last quarter. 93.24% of the stock is currently owned by institutional investors.

Warby Parker Company Profile

Warby Parker Inc is an eyewear company that designs, manufactures and sells prescription glasses, sunglasses and contact lenses. The company serves customers through its website, mobile channels and a network of retail stores, offering products under its Warby Parker brand.

Warby Parker provides eye-care services in addition to eyewear, including in-store eye exams and digital tools such as virtual vision testing, where available. Its retail and online experience is designed to combine prescription fulfillment with access to eye-care professionals and personalized eyewear recommendations.

Founded in 2010 by Neil Blumenthal, Dave Gilboa, Andrew Hunt and Jeffrey Raider, Warby Parker initially became known for its direct-to-consumer model and home try-on program.