Wayfair Stock Retreats From Record Highs Despite Bull Note

The equity is still up 130% year-to-date

Assistant Editor
Jul 14, 2020 at 11:05 AM
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The shares of Wayfair Inc (NYSE:W) are down 0.9% to trade at $208.72 at last check, shaking off an upgrade from Wedbush to "outperform" from "neutral." The firm also added a price-target hike to $240 from $165, noting the movement back towards online goods amid the spike in coronavirus cases, while expecting home-related spending to continue to broaden. 

The $230 region kept a cap on breakouts, as the stock traded sideways near its July 8 all-time high of $230.92. The 20-day moving average has been a layer of support, though. today the stock has fallen below that trendline. Regardless, W is still up around 130% in 2020. 

Coming into today, eight analysts sport a "strong buy," while the remaining 18 stay at a "hold" or worse. Meanwhile, the 12-month consensus target price of $184.29 is a 11.3% discount to current levels. 

Though short interest has fallen 10.8% in the last reporting period, the 16.01 million shares sold short still account for 26.5% of the stock's available float. At W's average pace of daily trading, it would take nearly five days to cover. 

Also, W's Schaeffer's Volatility Scorecard (SVS) sits at a highest possible 100. This means the stock has tended to exceed option traders' volatility expectations during the past year -- a boon for option buyers.

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