Is Warby Parker Stock a Buy or Sell After the Co-CEO Sold Shares for $2.6 Million?

David Abraham Gilboa, Co-Chief Executive Officer of Warby Parker (NYSE:WRBY), sold 94,906 directly held shares for a total consideration of approximately $2.6 million across open-market transactions on Jan. 7 and Jan. 9, 2026, according to a SEC Form 4 filing.

Transaction summary

Transaction value based on SEC Form 4 weighted average purchase price ($27.51); post-transaction value based on Jan. 9, 2026 market close price.

Key questions

• How significant is the transaction relative to Mr. Gilboa's historical selling cadence?
  This sale of 94,906 shares is in line with Mr. Gilboa's recent pattern, where the median open-market sale during the recent period was approximately 84,953 shares per trade, but represents a much larger portion of his remaining direct holdings due to prior disposals.
• What was the mechanism behind these transactions?
  The filing indicates all shares were acquired via conversion of derivative securities (options), then immediately sold as Class A Common Stock, highlighting a derivative-driven liquidation rather than a discretionary sale of long-held stock.
• What is the impact on Mr. Gilboa's ownership and remaining equity exposure?
  Following this transaction, Mr. Gilboa's direct equity stake fell to 37,247 shares, valued at approximately $1.1 million as of Jan. 9, 2026.
• How does the transaction relate to current market pricing and valuation?
  Shares were sold at a weighted average price of $27.51, while the stock closed at $27.51 on Jan. 9, 2026, and subsequently was priced at $29.09 as of Jan. 13, 2026, indicating the sale occurred at a slight discount to prevailing market levels post-transaction.

Company overview

* 1-year performance is calculated using Jan. 9, 2026 as the reference date.

Company snapshot

• Warby Parker offers prescription eyeglasses, sunglasses, contact lenses, and vision care accessories, with additional services including eye exams and vision tests.
• It operates a direct-to-consumer business model through both physical retail stores and digital platforms, generating revenue primarily from eyewear sales and related services.
• The company targets consumers seeking affordable, stylish eyewear and vision care in the United States and Canada.

Warby Parker Inc. is a vertically integrated eyewear company with a focus on accessible, design-driven products and a seamless omnichannel experience. The company's strategy leverages both physical retail and digital channels to reach a broad customer base and streamline the purchase of prescription eyewear and related services. Warby Parker's competitive edge lies in its direct-to-consumer approach, innovative product offerings, and commitment to affordability and convenience.

What this transaction means for investors

The sale of Warby Parker shares by Co-Chief Executive Officer David Abraham Gilboa comes on the heels of the stock reaching a 52-week high of $31 on Dec. 11. Shares soared after the eyewear company announced it would be producing artificial intelligence-powered eyeglasses.

But Mr. Gilboa's stock sale isn't a cause for alarm. His trade was part of a prearranged Rule 10b5-1 trading plan, which he adopted in September of 2025. Such plans are commonly implemented by insiders to avoid accusations of making trades based on insider information.

Mr. Gilboa had converted some of his options to Class A common stock for the January sales. While that brought his directly-held stake to 37,247 shares, he still indirectly possessed nearly 1.7 million shares of company stock in a trust.

Warby Parker is doing well. Its third quarter revenue grew 15% year over year to $221.7 million. The company also achieved net income of $5.9 million, a dramatic turnaround from the net loss of $4.1 million in the prior year.

Wall Street's excitement over AI has caused Warby Parker shares to hit a forward price-to-earnings ratio of 62, which suggests the stock is expensive. This means now is a good time for shareholders to sell, but not for investors to buy. Wait for the stock price to drop before deciding to invest.

Glossary

Net sold: The total number of shares sold minus any shares purchased during a specific period.
Open-market transaction: A trade executed on a public exchange, available to any investor, not through private agreements.
SEC Form 4: A required filing that discloses insider trades by company officers, directors, or large shareholders.
Derivative securities: Financial contracts whose value is based on the price of an underlying asset, such as stock options.
Class A common stock: A type of company share, often with specific voting rights or privileges compared to other share classes.
Options (stock options): Contracts granting the right to buy or sell shares at a set price within a certain timeframe.
Directly held shares: Shares owned outright by an individual, not through trusts or indirect accounts.
Weighted average price: The average price of shares sold, weighted by the number of shares at each price.
Equity stake: The ownership interest an individual or entity holds in a company, usually expressed as a percentage.
Direct equity stake: The portion of company ownership held directly, not through intermediaries or derivative instruments.
Omnichannel: A business strategy integrating multiple sales channels, such as physical stores and online platforms, for a seamless customer experience.
TTM: The 12-month period ending with the most recent quarterly report.

Robert Izquierdo has no position in any of the stocks mentioned. The Motley Fool recommends Warby Parker. The Motley Fool has a disclosure policy.