Long-time Wayfair insider bought $13.6M of W on the open market. Growth to continue post-pandemic?


Michael Kumin has been a director at Wayfair Inc (W) since June of 2011. The e-commerce furniture retailer went public in 2014, with Kumin’s private equity firm Great Hill Partners a major investor. Since then, the Wayfair insider bought shares of W just once on the open market — a $423K purchase at $141.04 on May 15, 2019. He’s been a frequent seller of W over the years. So why did he choose to buy $13.6M of Wayfair stock now?

On Friday after regular market hours, the Wayfair insider filed a Form 4 disclosing a 48,000 share open market purchase at an average price of $283.50. The buying increased Kumin’s in W by 19% from 252,940 to 300,940.

Kumin has been the Managing Partner at Green Hill Partners since 2002. Wayfair is the firm’s lone public holding, according to Green Hill’s most recent 13F filing.

Wayfair Inc (W) 2 year daily chart with 200 day moving average. Chart source: Interactive Brokers

Wayfair has grown quickly into an e-commerce behemoth. The company markets through several websites nearly 18 million items focused on home goods like furniture, decor, decorative accents, housewares, and seasonal selections.

For the fiscal year ended Decembr 31, 2020, Wayfair’s revenues increased 55% to $14.15B. Net income totaled $185M vs a loss of $987M.

Wayfair has benefited from the shop-from-home online retail trend, with the COVID-19 pandemic driving a 2020 spike in revenue.

However, there are skeptics. Wayfair’s short interest was 11.69M shares as of Feb.12. That represents about 6.2 days to cover, based on average daily volume. That’s a fairly elevated level, suggesting many investors are expecting the company to stumble.

The purchase by Wayfair insider Kumin suggests he foresees continued growth for W post-pandemic.

On March 1, Truist analyst Naved Khan upgraded Wayfair to Buy from Hold with a price target of $370, up from $315. The upgrade reflected the analyst’s expectation for improved long-term profitability and a faster/longer growth trajectory vs previously anticipated. Khan stated in a research note he believes the company is set to emerge from the pandemic stronger after solidifying its position as category leader in Home and an improvement in business underpinnings, driving healthy sales growth and improving profitability over an extended period.


This investment blog (the “Blog”) is created and authored by Mark W. Gaffney (the “Content Creator”). The Blog is provided for informational and entertainment purposes only (collectively, the “Blog Service”). The information in the Blog constitutes the Content Creator’s own opinions. None of the information contained in the Blog constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. You understand that the Content Creator is not advising, and will not advise you personally concerning the nature, potential, value or suitability of any particular security, portfolio of securities, transaction, investment strategy or other matter. To the extent any of the information contained in the Blog may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person.

From time to time, the Content Creator or its affiliates may hold positions or other interests in securities mentioned in the Blog. The Content Creator or affiliates may trade for their own account(s) based on the information presented, and may also take positions inconsistent with the views expressed in its messages on the Blog.

Also, the Content Creator may hold licenses with FINRA, the SEC or states securities authorities. The Content Creator may or may not disclose these licenses in the Blog.

Investing in the investments discussed in the Blog may be risky and speculative. The companies may have limited operating histories, little available public information. The stocks discussed may be volatile and illiquid. Trading in such securities can result in immediate and substantial losses of the capital invested. You should only invest risk capital not required for other purposes, such as retirement savings, student loans, mortgages or education.

Full Disclaimer.