Stitch Fix (NASDAQ:SFIX) Trading Up 9.6% – Time to Buy?

Shares of Stitch Fix, Inc. (NASDAQ:SFIX) shot up 9.6% on Monday . The company traded as high as $3.92 and last traded at $3.9250. 775,822 shares traded hands during trading, a decline of 62% from the average daily volume of 2,063,782 shares. The stock had previously closed at $3.58.

Analyst Upgrades and Downgrades

SFIX has been the topic of several research analyst reports. Wall Street Zen cut shares of Stitch Fix from a “buy” rating to a “hold” rating in a research note on Saturday, May 2nd. Weiss Ratings upgraded Stitch Fix from a “sell (e+)” rating to a “sell (d-)” rating in a report on Monday, July 13th. UBS Group increased their price objective on Stitch Fix from $4.00 to $4.50 and gave the stock a “neutral” rating in a report on Thursday, June 11th. Finally, Northland Securities began coverage on Stitch Fix in a research note on Thursday, May 28th. They issued an “outperform” rating and a $5.00 price target for the company. One investment analyst has rated the stock with a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, Stitch Fix currently has a consensus rating of “Hold” and an average target price of $5.12.

Stitch Fix Trading Up 0.6%

The firm’s 50 day simple moving average is $3.80 and its two-hundred day simple moving average is $3.82. The firm has a market cap of $566.41 million, a price-to-earnings ratio of -53.19 and a beta of 2.26.

Stitch Fix (NASDAQ:SFIX) last issued its quarterly earnings results on Wednesday, June 10th. The company reported ($0.01) earnings per share (EPS) 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 return on equity of 9.35% and a negative net margin of 1.43%.The firm’s quarterly revenue was up 4.7% compared to the same quarter last year. During the same quarter in the prior year, the business posted ($0.06) earnings per share. As a group, equities research analysts anticipate that Stitch Fix, Inc. will post -0.14 earnings per share for the current fiscal year.

Insider Activity at Stitch Fix

In related news, insider Anthony Bacos sold 70,000 shares of the company’s stock in a transaction that occurred on Monday, July 20th. The shares were sold at an average price of $3.79, for a total transaction of $265,300.00. Following the completion of the transaction, the insider directly owned 991,994 shares in the company, valued at $3,759,657.26. This represents a 6.59% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO David Aufderhaar sold 67,960 shares of the company’s stock in a transaction on Monday, July 6th. The stock was sold at an average price of $3.79, for a total transaction of $257,568.40. Following the transaction, the chief financial officer owned 1,102,369 shares of the company’s stock, valued at $4,177,978.51. This trade represents a 5.81% 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. Insiders have sold a total of 587,971 shares of company stock worth $2,375,317 in the last quarter. 16.09% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the business. Caerus Investment Advisors LLC bought a new position in shares of Stitch Fix during the first quarter valued at $36,000. First Dallas Securities Inc. bought a new position in shares of Stitch Fix during the 1st quarter worth about $38,000. Krilogy Financial LLC bought a new position in Stitch Fix in the first quarter worth approximately $46,000. Creative Planning bought a new position in shares of Stitch Fix in the 2nd quarter worth $46,000. Finally, Chicago Partners Investment Group LLC acquired a new position in Stitch Fix during the 1st quarter valued at about $47,000. Institutional investors 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.