Wedbush Has Lowered Expectations for Wayfair (NYSE:W) Stock Price

Wayfair (NYSE:W) had its price target dropped by Wedbush from $100.00 to $85.00 in a report issued on Friday,Benzinga reports. The brokerage presently has a “neutral” rating on the stock. Wedbush’s price objective would suggest a potential upside of 6.88% from the stock’s current price.

Several other research firms have also recently commented on W. Raymond James Financial raised their target price on Wayfair from $90.00 to $130.00 and gave the company a “strong-buy” rating in a research report on Wednesday, October 29th. Wells Fargo & Company lifted their price objective on shares of Wayfair from $90.00 to $110.00 and gave the company an “overweight” rating in a research note on Wednesday, October 29th. Morgan Stanley raised their target price on shares of Wayfair from $130.00 to $140.00 and gave the company an “overweight” rating in a research note on Thursday, January 15th. Citigroup upped their price target on shares of Wayfair from $105.00 to $135.00 and gave the stock a “buy” rating in a research note on Wednesday, October 29th. Finally, Jefferies Financial Group lowered shares of Wayfair from a “buy” rating to a “hold” rating and set a $94.00 price objective on the stock. in a research note on Wednesday, December 3rd. One research analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, ten have given a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $108.00.

Wayfair Trading Down 13.1%

NYSE W opened at $79.53 on Friday. The company has a 50-day moving average price of $101.98 and a two-hundred day moving average price of $93.46. Wayfair has a 52 week low of $20.41 and a 52 week high of $119.98. The stock has a market cap of $10.37 billion, a price-to-earnings ratio of -31.07, a price-to-earnings-growth ratio of 8.74 and a beta of 3.36.

Insiders Place Their Bets

In related news, insider Jon Blotner sold 4,997 shares of the stock in a transaction that occurred on Monday, January 5th. The shares were sold at an average price of $105.84, for a total transaction of $528,882.48. Following the completion of the sale, the insider directly owned 106,107 shares of the company’s stock, valued at $11,230,364.88. This represents a 4.50% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Steven Conine sold 150,000 shares of the firm’s stock in a transaction that occurred on Friday, January 23rd. The stock was sold at an average price of $108.87, for a total transaction of $16,330,500.00. Following the sale, the insider owned 289,073 shares of the company’s stock, valued at $31,471,377.51. The trade was a 34.16% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 950,494 shares of company stock worth $100,127,813. Company insiders own 21.91% of the company’s stock.

Hedge Funds Weigh In On Wayfair

Hedge funds have recently modified their holdings of the stock. Capital World Investors raised its position in shares of Wayfair by 0.6% during the fourth quarter. Capital World Investors now owns 13,457,158 shares of the company’s stock worth $1,351,237,000 after purchasing an additional 82,584 shares during the period. Vanguard Group Inc. increased its stake in Wayfair by 0.8% in the 4th quarter. Vanguard Group Inc. now owns 9,634,757 shares of the company’s stock worth $967,426,000 after purchasing an additional 72,707 shares in the last quarter. Renaissance Technologies LLC raised its holdings in Wayfair by 3.5% during the 4th quarter. Renaissance Technologies LLC now owns 5,407,325 shares of the company’s stock worth $542,950,000 after buying an additional 180,558 shares during the period. Janus Henderson Group PLC lifted its stake in Wayfair by 4.9% during the fourth quarter. Janus Henderson Group PLC now owns 3,570,475 shares of the company’s stock valued at $358,514,000 after buying an additional 166,855 shares in the last quarter. Finally, Spruce House Investment Management LLC lifted its stake in Wayfair by 37.6% during the second quarter. Spruce House Investment Management LLC now owns 3,000,000 shares of the company’s stock valued at $153,420,000 after buying an additional 819,615 shares in the last quarter. 89.67% of the stock is currently owned by institutional investors and hedge funds.

Wayfair News Summary

Here are the key news stories impacting Wayfair this week:

• Positive Sentiment: Q4 results beat expectations: Wayfair reported adjusted EPS of $0.85 and revenue of $3.34B, topping consensus and marking the company’s first annual sales gain since 2020 — a clear sign revenue momentum is returning. Wayfair Announces Fourth Quarter and Full Year 2025 Results
• Positive Sentiment: Profitability improvement: Adjusted earnings beat estimates and the company narrowed losses year-over-year, supporting the case that operating leverage is returning as volumes rise. Wayfair Surpasses Q4 Earnings and Revenue Estimates
• Neutral Sentiment: CFO highlights physical expansion: CFO Kate Gulliver said Wayfair is expanding its brick-and-mortar footprint as foot traffic and demand grow — a strategic growth channel but one that brings upfront costs. Wayfair CFO on growing brick-and-mortar business
• Neutral Sentiment: Broader narrative and partnerships under review: Analysts and coverage pieces note valuation and strategic items (including partnerships/AI mentions) that could matter longer term but are not the immediate driver. Wayfair Valuation Check As Earnings, Affirm Expansion And Google AI Deal Draw Investor Focus
• Neutral Sentiment: Promotions and inventory deals are visible (warehouse clearouts, big discounts) — good for clearing stock and demand but signal promotional pressure on gross margins. Wayfair warehouse clearout sale
• Negative Sentiment: Management warned investments could pressure margins: Wayfair signaled that planned expansion and investments (stores, marketing, fulfillment) may narrow near-term margins, worrying profit-focused investors. Wayfair warns investment plans could pressure margins
• Negative Sentiment: Active-customer growth flagged as a concern: Despite beats, commentary and some metrics pointed to weaker active-customer trends, prompting investor anxiety about sustainable customer growth and future revenue momentum. Highly Shorted Wayfair Sinks As Active Customer Decline Raises Red Flags
• Negative Sentiment: One-time items weighed on reported profit: Coverage notes a debt-extinguishment loss and an unexpected net-loss swing in the quarter that clouded headline profitability despite the adjusted beats. Wayfair Beats Earnings Estimates. Why the Stock Is Falling Sharply.

Wayfair Company Profile

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.