Zacks Investment Research Upgrades Stitch Fix (NASDAQ:SFIX) to Hold

Zacks Investment Research upgraded shares of Stitch Fix (NASDAQ:SFIX) from a sell rating to a hold rating in a report published on Tuesday, Zacks.com reports. They currently have $42.00 target price on the stock.

According to Zacks, “Shares of Stitch Fix have underperformed the industry in the past three months. We note that the company reported soft second-quarter results and trimmed sales view for fiscal 2021. This further weighed on investor sentiments. Moreover, gross margin contracted in the reported quarter owing to increased shipping expenses. Higher selling, general, and administrative expenses have also been a drag. Persistence of such headwinds is likely to put pressure on EBITDA in the forthcoming period. Nonetheless, Stitch Fix is witnessing continued growth in its active client base, which is supporting the top line. Markedly, active clients improved 11.8% during second quarter. The company is also gaining from measures to boost assortments and direct buy facility. It has been making investments in product experiences that are likely to drive personalization.”

Other equities analysts also recently issued reports about the stock. Deutsche Bank Aktiengesellschaft reaffirmed a hold rating and set a $54.00 target price on shares of Stitch Fix in a research note on Monday, March 15th. Stifel Nicolaus downgraded shares of Stitch Fix from a buy rating to a hold rating and boosted their price target for the company from $64.00 to $83.00 in a research note on Monday, February 1st. TheStreet downgraded shares of Stitch Fix from a c rating to a d+ rating in a research note on Monday, March 8th. Truist boosted their price target on shares of Stitch Fix from $52.00 to $60.00 in a research note on Tuesday, March 9th. Finally, Canaccord Genuity reduced their price target on shares of Stitch Fix from $72.00 to $68.00 and set a buy rating on the stock in a research note on Monday, March 15th. Three investment analysts have rated the stock with a sell rating, six have issued a hold rating and eight have issued a buy rating to the company. Stitch Fix has an average rating of Hold and a consensus price target of $77.36.

SFIX opened at $43.06 on Tuesday. The firm’s 50-day moving average price is $46.12 and its 200 day moving average price is $57.36. Stitch Fix has a twelve month low of $18.84 and a twelve month high of $113.76. The firm has a market capitalization of $4.58 billion, a PE ratio of -75.54 and a beta of 2.46.

Stitch Fix (NASDAQ:SFIX) last issued its earnings results on Sunday, March 7th. The company reported ($0.20) EPS for the quarter, topping analysts’ consensus estimates of ($0.22) by $0.02. Stitch Fix had a negative net margin of 3.27% and a negative return on equity of 13.58%. The company had revenue of $504.10 million for the quarter, compared to the consensus estimate of $512.17 million. During the same period in the previous year, the firm earned $0.11 earnings per share. Stitch Fix’s quarterly revenue was up 11.6% compared to the same quarter last year. Equities analysts anticipate that Stitch Fix will post -0.25 EPS for the current year.

In other Stitch Fix news, CEO Katrina Lake sold 33,360 shares of the business’s stock in a transaction that occurred on Thursday, April 22nd. The shares were sold at an average price of $43.16, for a total transaction of $1,439,817.60. Following the completion of the transaction, the chief executive officer now owns 15,437 shares in the company, valued at approximately $666,260.92. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Marka Hansen sold 10,000 shares of the business’s stock in a transaction that occurred on Wednesday, May 5th. The stock was sold at an average price of $42.19, for a total transaction of $421,900.00. Following the transaction, the director now owns 10,000 shares of the company’s stock, valued at approximately $421,900. The disclosure for this sale can be found here. Insiders have sold a total of 321,035 shares of company stock valued at $15,997,152 in the last quarter. 45.10% of the stock is currently owned by company insiders.

Hedge funds and other institutional investors have recently bought and sold shares of the business. Concorde Asset Management LLC acquired a new position in shares of Stitch Fix in the 4th quarter valued at $1,593,000. Scout Investments Inc. acquired a new position in shares of Stitch Fix in the 1st quarter valued at $13,393,000. Radnor Capital Management LLC acquired a new position in shares of Stitch Fix in the 4th quarter valued at $435,000. New York State Common Retirement Fund boosted its holdings in shares of Stitch Fix by 5.8% in the 4th quarter. New York State Common Retirement Fund now owns 54,500 shares of the company’s stock valued at $3,200,000 after buying an additional 3,000 shares in the last quarter. Finally, Kovack Advisors Inc. acquired a new position in shares of Stitch Fix in the 4th quarter valued at $262,000. Institutional investors own 55.51% of the company’s stock.

About Stitch Fix

Stitch Fix, Inc sells a range of apparel, shoes, and accessories through its Website and mobile application in the United States. It offers denim, dresses, blouses, skirts, shoes, jewelry, and handbags for men, women, and kids under the Stitch Fix brand. The company was formerly known as rack habit inc.

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