Insider Trading Report: Warby Parker (WRBY)

Durable Capital Partners LP, a major owner of Warby Parker (WRBY), recently added 407,615 shares to their stake. The buy increased the fund’s holdings by nearly 4 percent, and came to a total price of just over $17.5 million.

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  • That’s on top of a number of buys the fund made last year, including a 75,677 share buy back in mid-December for just over $3.3 million. Among other insider trades, the company co-CEO and a director have been sellers since the company went public last year.

    Overall, insiders own 4.5 percent of the eyewear company.

    The stock has shed nearly 30 percent since going public back in September. While unprofitable at the moment, the company has grown revenue by 32 percent over the past year, and the company’s IPO leaves the firm with over $266 million in cash on the balance sheet with no debt.

    Action to take: Eyewear is a steady industry, as demand is unlikely to decline. Shares can likely trend higher from current prices in time, although investors and traders alike should first wait for the stock to cease its current downtrend.

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  • For traders, the current downtrend is tradeable with a put option. The March $35 puts, last going for about $3.57, can potentially deliver mid-double-digit gains in the next few months on a continued downtrend in shares. Traders should look to take profits on any potential reversal in the stock.

     

    Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.

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