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Wayfair Approves $700M Stock Repurchase; Shares Now Up 275% YTD

W) board of directors have authorized the repurchase of up to $700 million of the company’s Class A common stock.” data-reactid=”12″>Wayfair’s (W) board of directors have authorized the repurchase of up to $700 million of the company’s Class A common stock.

This means W is authorized to repurchase, from time to time, its shares in the open market, through privately negotiated transactions, or otherwise.

According to the filing, the company can repurchase shares to offset the potential equity dilution associated with its remaining $87.8 million aggregate principal amount of 0.375% convertible senior notes due 2022.

The authorization is effective immediately and replaces the previous 2018 $200 million stock repurchase authorization, under which W repurchased approximately $145 million of stock.

Brian Nagel recently reiterated his bullish call on the stock while ramping up his price target from $200 to $395 (16% upside potential).” data-reactid=”20″>Shares in the online home furnishings retailer have exploded by over 275% year-to-date. And Oppenheimer’s Brian Nagel recently reiterated his bullish call on the stock while ramping up his price target from $200 to $395 (16% upside potential).

“For some time, we have highlighted the unique business model of Wayfair as powerful and under-appreciated by investors” the analyst commented.

“Over the past few months, a combination of waning investment spending, better overall cost disciplines, and a significant COVID-19-fueled boost in sales growth have propelled Wayfair to substantial profitability and cash generation” he continued on August 6.

While trends can moderate, Nagel is optimistic that the market will increasingly look upon Wayfair as proven and assign shares a higher valuation. He notes that Wayfair ended Q2 (Jun.) with nearly 26M active customers, up 46% from the prior year and 23% from Q1 (Mar.).

See W stock analysis on TipRanks)” data-reactid=”24″>“Our continued positive call on Wayfair is generally longer term in nature and considers potential nearer-term volatility in shares” the analyst concludes. (See W stock analysis on TipRanks)

price target now indicates 9% downside potential from current levels.” data-reactid=”25″>Overall the stock shows a cautiously optimistic Moderate Buy Street consensus. Due to W’s recent rally, the average analyst price target now indicates 9% downside potential from current levels.

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