Stitch Fix (NASDAQ:SFIX) Trading Down 7.4% – What’s Next?

Stitch Fix, Inc. (NASDAQ:SFIX)’s stock price fell 7.4% during trading on Wednesday . The company traded as low as $5.13 and last traded at $5.1050. 456,483 shares changed hands during trading, a decline of 79% from the average session volume of 2,170,468 shares. The stock had previously closed at $5.51.

Analyst Ratings Changes

A number of equities research analysts have recently issued reports on SFIX shares. Wall Street Zen lowered Stitch Fix from a “buy” rating to a “hold” rating in a research report on Saturday, January 3rd. Zacks Research cut shares of Stitch Fix from a “strong-buy” rating to a “hold” rating in a report on Friday, December 5th. Sanford C. Bernstein reaffirmed a “market perform” rating and issued a $6.00 target price on shares of Stitch Fix in a research report on Thursday, September 25th. UBS Group reissued a “neutral” rating on shares of Stitch Fix in a research note on Wednesday, September 17th. Finally, Weiss Ratings reiterated a “sell (d-)” rating on shares of Stitch Fix in a report on Wednesday, October 8th. One equities research analyst has rated the stock with a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the company currently has an average rating of “Hold” and a consensus target price of $6.00.

Stitch Fix Price Performance

The stock’s 50 day simple moving average is $4.81 and its 200-day simple moving average is $4.77. The stock has a market capitalization of $679.72 million, a price-to-earnings ratio of -31.66 and a beta of 2.10.

Stitch Fix (NASDAQ:SFIX) last released its quarterly earnings results on Thursday, December 4th. The company reported ($0.05) earnings per share (EPS) for the quarter, hitting the consensus estimate of ($0.05). The company had revenue of $342.13 million during the quarter, compared to the consensus estimate of $335.74 million. Stitch Fix had a negative return on equity of 14.38% and a negative net margin of 2.23%.The firm’s revenue was up 7.3% on a year-over-year basis. During the same quarter in the prior year, the company posted ($0.03) EPS. As a group, equities research analysts anticipate that Stitch Fix, Inc. will post -0.44 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, Director Katrina Lake sold 303,450 shares of the stock in a transaction dated Friday, December 5th. The shares were sold at an average price of $5.19, for a total value of $1,574,905.50. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Casey O’connor sold 50,000 shares of Stitch Fix stock in a transaction that occurred on Monday, October 20th. The stock was sold at an average price of $4.41, for a total value of $220,500.00. Following the sale, the insider directly owned 431,441 shares in the company, valued at $1,902,654.81. The trade was a 10.39% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 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 made changes to their positions in the business. Fund 1 Investments LLC increased its stake in Stitch Fix by 44.6% in the second quarter. Fund 1 Investments LLC now owns 9,943,821 shares of the company’s stock valued at $36,792,000 after acquiring an additional 3,064,901 shares during the period. Arrowstreet Capital Limited Partnership raised its stake in Stitch Fix by 302.9% during the third quarter. Arrowstreet Capital Limited Partnership now owns 2,897,171 shares of the company’s stock worth $12,603,000 after acquiring an additional 2,178,156 shares in the last quarter. Marshall Wace LLP lifted its holdings in shares of Stitch Fix by 4,898.1% during the second quarter. Marshall Wace LLP now owns 2,010,034 shares of the company’s stock valued at $7,437,000 after acquiring an additional 1,969,818 shares during the period. Working Capital Advisors UK Ltd. boosted its stake in shares of 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 purchasing an additional 1,512,475 shares in the last quarter. Finally, Shay Capital LLC bought a new stake in shares of Stitch Fix in the 2nd quarter worth about $3,570,000. 71.04% of the stock is owned by 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.