Stitch Fix, Inc. (NASDAQ:SFIX) Given Average Recommendation of “Reduce” by Brokerages

Stitch Fix, Inc. (NASDAQ:SFIX) has received a consensus recommendation of “Reduce” from the five research firms that are currently covering the stock, Marketbeat reports. One research analyst has rated the stock with a sell recommendation and four have assigned a hold recommendation to the company. The average twelve-month target price among brokerages that have issued ratings on the stock in the last year is $5.00.

Several brokerages have recently commented on SFIX. Wall Street Zen downgraded Stitch Fix from a “buy” rating to a “hold” rating in a research note on Saturday, May 2nd. UBS Group reduced their target price on Stitch Fix from $6.00 to $4.00 and set a “neutral” rating for the company in a research note on Tuesday, March 3rd. Weiss Ratings reiterated a “sell (d-)” rating on shares of Stitch Fix in a research note on Tuesday, April 21st. Telsey Advisory Group dropped their price target on Stitch Fix from $6.00 to $5.00 and set a “market perform” rating for the company in a report on Thursday, March 12th. Finally, William Blair reissued a “mixed” rating on shares of Stitch Fix in a report on Friday, March 6th.

Insider Activity at Stitch Fix

In related news, CFO David Aufderhaar sold 65,709 shares of Stitch Fix stock in a transaction that occurred on Tuesday, April 7th. The stock was sold at an average price of $3.09, for a total transaction of $203,040.81. Following the completion of the sale, the chief financial officer directly owned 1,178,037 shares of the company’s stock, valued at approximately $3,640,134.33. This trade represents a 5.28% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Casey O’connor sold 60,000 shares of Stitch Fix stock in a transaction that occurred on Friday, April 10th. The stock was sold at an average price of $3.08, for a total value of $184,800.00. Following the sale, the insider directly owned 480,334 shares of the company’s stock, valued at approximately $1,479,428.72. The trade was a 11.10% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 16.09% of the company’s stock.

Hedge Funds Weigh In On Stitch Fix

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Working Capital Advisors UK Ltd. raised its holdings in Stitch Fix by 15.9% in the 3rd quarter. Working Capital Advisors UK Ltd. now owns 11,046,077 shares of the company’s stock valued at $48,050,000 after acquiring an additional 1,512,475 shares in the last quarter. State of Michigan Retirement System raised its holdings in shares of Stitch Fix by 122.3% during the 3rd quarter. State of Michigan Retirement System now owns 726,983 shares of the company’s stock worth $3,162,000 after buying an additional 400,000 shares in the last quarter. Hodges Capital Management Inc. raised its holdings in shares of Stitch Fix by 20.0% during the 3rd quarter. Hodges Capital Management Inc. now owns 1,737,556 shares of the company’s stock worth $7,558,000 after buying an additional 289,905 shares in the last quarter. Diversified Trust Co. raised its holdings in shares of Stitch Fix by 29.8% during the 4th quarter. Diversified Trust Co. now owns 40,179 shares of the company’s stock worth $211,000 after buying an additional 9,224 shares in the last quarter. Finally, Hudson Bay Capital Management LP acquired a new position in shares of Stitch Fix during the 3rd quarter worth $61,000. 71.04% of the stock is owned by institutional investors and hedge funds.

Stitch Fix Stock Performance

Shares of NASDAQ SFIX opened at $3.33 on Monday. Stitch Fix has a 12 month low of $2.95 and a 12 month high of $5.94. The stock has a 50 day moving average of $3.41 and a 200-day moving average of $4.12. The company has a market capitalization of $454.61 million, a P/E ratio of -25.62 and a beta of 2.33.

Stitch Fix (NASDAQ:SFIX) last issued its earnings results on Wednesday, March 11th. The company reported ($0.02) EPS for the quarter, topping the consensus estimate of ($0.05) by $0.03. Stitch Fix had a negative return on equity of 12.23% and a negative net margin of 1.89%.The company had revenue of $341.30 million during the quarter, compared to the consensus estimate of $334.74 million. During the same period in the previous year, the company posted ($0.05) EPS. The firm’s revenue for the quarter was up 9.4% compared to the same quarter last year. Analysts predict that Stitch Fix will post -0.19 EPS for the current fiscal year.

About Stitch Fix

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.