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

Stitch Fix, Inc. (NASDAQ:SFIX)’s stock price was down 6.3% during trading on Tuesday . The stock traded as low as $4.11 and last traded at $4.1060. Approximately 985,740 shares traded hands during 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

A number of equities analysts have issued reports on SFIX shares. Wall Street Zen lowered Stitch Fix from a “buy” rating to a “hold” rating in a research note on Saturday, May 2nd. William Blair reissued a “mixed” rating on shares of Stitch Fix in a research note on Friday, March 6th. Telsey Advisory Group cut their price objective 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. Weiss Ratings lowered Stitch Fix from a “sell (d-)” rating to a “sell (e+)” rating in a report on Friday, June 12th. Finally, Northland Securities assumed coverage on shares of Stitch Fix in a research report on Thursday, May 28th. They issued an “outperform” rating and a $5.00 price target on the stock. One 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’s stock. According to MarketBeat.com, the company currently has an average rating of “Hold” and a consensus target price of $5.12.

Stitch Fix Trading Down 4.6%

The firm has a market capitalization of $510.62 million, a price-to-earnings ratio of -47.61 and a beta of 2.25. The stock has a fifty day moving average of $3.70 and a 200-day moving average of $4.01.

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

Insider Buying and Selling at Stitch Fix

In other Stitch Fix news, insider Casey O’connor sold 60,000 shares of the firm’s stock in a transaction dated Friday, April 10th. The shares were sold at an average price of $3.08, for a total value of $184,800.00. Following the completion of the transaction, the insider directly owned 480,334 shares in the company, valued at $1,479,428.72. This trade represents a 11.10% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Anthony Bacos sold 70,011 shares of Stitch Fix stock in a transaction that occurred on Monday, June 29th. The stock was sold at an average price of $4.42, for a total transaction of $309,448.62. Following the completion of the transaction, the insider directly owned 1,051,994 shares in the company, valued at approximately $4,649,813.48. This trade represents a 6.24% 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 ninety days, insiders sold 435,720 shares of company stock valued at $1,721,589. 16.09% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Stitch Fix

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Caerus Investment Advisors LLC purchased a new stake in shares of Stitch Fix in the first quarter valued at $36,000. First Dallas Securities Inc. acquired a new position in Stitch Fix during the first quarter valued at $38,000. Krilogy Financial LLC purchased a new stake in Stitch Fix in the 1st quarter worth about $46,000. Creative Planning purchased a new stake in Stitch Fix in the 2nd quarter worth about $46,000. Finally, Chicago Partners Investment Group LLC acquired a new stake in Stitch Fix during the 1st quarter worth about $47,000. 71.04% of the stock is currently owned by hedge funds and other institutional investors.

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.