Wayfair Inc. (NYSE:W) finished Thursday with a subtraction of -$1.82 to close at $72.85, a downside of -2.44 percent. An average of 4,513,860 shares of common stock have been traded in the last five days. There was a fall of -$11.82 in the past week, and it reached a new high 4 times over the past 12 months. The last 20 days have seen an average of 5,136,045 shares traded, while the 50-day average volume stands at 5,585,306.
W stock has increased by 5.83% in the last month. The company shares reached their 1-month lowest point of $65.06 on 07/11/23. With the stock rallying to its 52-week high on 08/03/23, shares of the company touched a low of $28.11 and a high of $90.71 in 52 weeks. It has reached a new high 18 times so far this year and achieved 121.50% or $39.96 in price. In spite of this, the price is down -19.69% from the 52-week high.
Insider Transactions
W stock investors should be aware that Wayfair Inc. (W) stock had its last reported insider trading activity 8 days ago on Aug 03. In this transaction, the insider spent $425,000. Director, Schaferkordt Anke, disposed of 679 shares at a price of $73.10 on Aug 02. The insider now owns more than $49,633 worth of shares. Prior to that, Chief Technology Officer Tan Fiona went on to Sale 24,069 shares at $64.13 each on Jul 05. An amount of $1,543,480 was transacted.
Valuation Metrics
Wayfair Inc. (W) stock’s beta is 3.16. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 0.69.
Financial Health
The quick ratio of Wayfair Inc. for the three months ended June 29 was 0.90, and the current ratio was 0.90, indicating that the company is not able to meet its debt obligations. Wayfair Inc.’s EBITDA margin for the year ending June 29 is -7.72%, while its operating margin for the same period stands at -8.30%. Its gross profit as reported stood at $3.42 billion compared to revenue of $12.22 billion.
For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Wayfair Inc.’s return on assets was -29.90%.
Earnings Surprise
For the three-month period that ended June 29, Wayfair Inc. had $4.0 million in cash and short-term investments compared to $3.21 billion in total debt. In the quarter under review, the net income was up than the previous quarter. The company posted a net income of -$46.0 million in the quarter, while revenues were shrunk -721.74%. The analyst consensus anticipated Wayfair Inc.’s latest quarter earnings to come in at -$0.74 per share, but it turned out to be $0.21, a 128.40% surprise. For the quarter, EBITDA amounted to -$38.0 million. Shareholders own equity worth $115.95 million.
Technical Picture
From a technical analysis perspective, let’s take a brief look at Wayfair Inc. (W) price momentum. RSI 9-day as of the close on 10 August was 45.86%, suggesting the stock is Neutral, with historical volatility in this time frame at 103.52%.
As of today, W’s price is $79.13 -13.96% or -$11.82 from its 5-day moving average. W is currently trading +0.93% higher than its 20-day SMA and +129.67% higher than its 100-day SMA. However, the stock’s current price level is +78.73% above the SMA50 and +119.49% above the SMA200.
The stochastic %K and %D were 41.32% and 54.67%, respectively, and the average true range (ATR) was 5.24. With the 14-day stochastic at 26.62% and the average true range at 4.87, the RSI (14) stands at 51.79%. The stock has reached -2.12 on the 9-day MACD Oscillator while the 14-day reading was at 1.05.
Analyst Ratings
UBS upgraded Wayfair Inc. (NYSE: W) to a a Buy rating in its most recent analyst report. Previously, the stock was rated as a Neutral. The consensus rating for Wayfair Inc. (W) among analysts is Overweight. According to current brokerage recommendations, 1 brokerage firm advise that investors sell W, while 17 suggest investors hold. There are 1 analyst who rate the stock as underweight. The stock is rated overweight by 1 analysts, while 17 others rate it as a “buy”.
What is W’s price target for the next 12 months?
Analysts predict a range of price targets between $45.00 and $139.00, with a median target of $93.00. Taking a look at these predictions, the average price target given by analysts for Wayfair Inc. (W) stock is $89.27.
