Stitch Fix (NASDAQ:SFIX) Trading Down 6.3% – Here’s Why

Stitch Fix, Inc. (NASDAQ:SFIX)’s stock price fell 6.3% on Tuesday . The company traded as low as $4.11 and last traded at $4.1060. Approximately 985,740 shares were traded during mid-day trading, a decline of 55% from the average session volume of 2,174,175 shares. The stock had previously closed at $4.38.

Analysts Set New Price Targets

SFIX has been the subject of a number of analyst reports. UBS Group upped their price objective on shares of Stitch Fix from $4.00 to $4.50 and gave the company a “neutral” rating in a research note on Thursday, June 11th. Wall Street Zen downgraded shares of Stitch Fix from a “buy” rating to a “hold” rating in a research report on Saturday, May 2nd. William Blair reiterated a “mixed” rating on shares of Stitch Fix in a research report on Friday, March 6th. Northland Securities started coverage on Stitch Fix in a report on Thursday, May 28th. They issued an “outperform” rating and a $5.00 target price for the company. Finally, Telsey Advisory Group decreased their target price on Stitch Fix from $6.00 to $5.00 and set a “market perform” rating for the company in a research report on Thursday, March 12th. One investment analyst has rated the stock with a Buy rating, four have issued a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, Stitch Fix currently has an average rating of “Hold” and a consensus target price of $5.12.

Stitch Fix Trading Down 6.3%

The business’s 50-day simple moving average is $3.70 and its 200-day simple moving average is $4.03. The company has a market cap of $547.73 million, a PE ratio of -51.44 and a beta of 2.31.

Stitch Fix (NASDAQ:SFIX) last posted its quarterly earnings results on Wednesday, June 10th. The company reported ($0.01) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.06) by $0.05. The business had revenue of $340.28 million for the quarter, compared to the consensus estimate of $333.51 million. Stitch Fix had a negative net margin of 1.43% and a negative return on equity of 9.35%. Stitch Fix’s revenue for the quarter was up 4.7% compared to the same quarter last year. During the same period in the prior year, the business posted ($0.06) earnings per share. On average, research analysts predict that Stitch Fix, Inc. will post -0.15 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, insider Casey O’connor sold 60,000 shares of the firm’s stock in a transaction that occurred on Friday, April 10th. The shares were sold at an average price of $3.08, for a total transaction of $184,800.00. Following the transaction, the insider owned 480,334 shares of the company’s stock, valued at approximately $1,479,428.72. This trade represents a 11.10% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Anthony Bacos sold 100,000 shares of the business’s stock in a transaction that occurred on Wednesday, June 24th. The stock was sold at an average price of $4.51, for a total transaction of $451,000.00. Following the completion of the sale, the insider directly owned 1,071,994 shares of the company’s stock, valued at $4,834,692.94. This represents a 8.53% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 365,709 shares of company stock worth $1,412,141. Insiders own 16.09% of the company’s stock.

Institutional Trading of Stitch Fix

A number of institutional investors and hedge funds have recently made changes to their positions in SFIX. Caerus Investment Advisors LLC acquired a new position in shares of Stitch Fix during the 1st quarter valued at about $36,000. First Dallas Securities Inc. acquired a new position in Stitch Fix during the first quarter valued at approximately $38,000. Krilogy Financial LLC bought a new position in shares of Stitch Fix in the first quarter valued at approximately $46,000. Creative Planning acquired a new stake in shares of Stitch Fix in the second quarter worth $46,000. Finally, Chicago Partners Investment Group LLC acquired a new stake in shares of Stitch Fix in the first quarter worth $47,000. Institutional investors and hedge funds own 71.04% of the company’s stock.

Stitch Fix Company Profile

Stitch Fix, Inc, headquartered in San Francisco, California, is a leading online personal styling service that blends data science with human expertise to deliver curated clothing and accessory selections. Founded in 2011 by Katrina Lake, the company pioneered a subscription-based model in which customers receive periodic “Fixes” tailored to their personal style, size and budget. Each shipment arrives with several handpicked items along with styling notes, allowing clients to review, purchase and return pieces at their convenience.

Clients begin by completing an online style profile that captures their measurements, design preferences and lifestyle needs.