Stitch Fix (NASDAQ:SFIX) Trading 10.4% Higher – Here’s What Happened

Stitch Fix, Inc. (NASDAQ:SFIX) shares were up 10.4% during trading on Wednesday . The stock traded as high as $3.72 and last traded at $3.6750. Approximately 741,270 shares changed hands during trading, a decline of 66% from the average daily volume of 2,200,593 shares. The stock had previously closed at $3.33.

Analyst Ratings Changes

A number of equities analysts recently issued reports on SFIX shares. Wall Street Zen lowered Stitch Fix from a “buy” rating to a “hold” rating in a report on Saturday, January 3rd. William Blair reaffirmed a “mixed” rating on shares of Stitch Fix in a research note on Friday, March 6th. Telsey Advisory Group lowered their target price on Stitch Fix from $6.00 to $5.00 and set a “market perform” rating on the stock in a research note on Thursday, March 12th. UBS Group dropped their target price on Stitch Fix from $6.00 to $4.00 and set a “neutral” rating on the stock in a report on Tuesday, March 3rd. Finally, Weiss Ratings restated a “sell (d-)” rating on shares of Stitch Fix in a research note on Thursday, January 22nd. Four research analysts have rated the stock with a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, the stock has a consensus rating of “Reduce” and a consensus price target of $5.00.

Stitch Fix Price Performance

The company has a market capitalization of $494.89 million, a PE ratio of -27.88 and a beta of 2.33. The stock has a 50-day simple moving average of $3.43 and a 200 day simple moving average of $4.27.

Stitch Fix (NASDAQ:SFIX) last announced its earnings results on Wednesday, March 11th. The company reported ($0.02) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.05) by $0.03. Stitch Fix had a negative net margin of 1.89% and a negative return on equity of 12.23%. The company had revenue of $341.30 million during the quarter, compared to analysts’ expectations of $334.74 million. During the same quarter in the previous year, the business posted ($0.05) earnings per share. The firm’s quarterly revenue was up 9.4% compared to the same quarter last year. As a group, research analysts predict that Stitch Fix, Inc. will post -0.44 EPS for the current fiscal year.

Insider Transactions at Stitch Fix

In other news, Director Katrina Lake sold 8,835 shares of the business’s stock in a transaction on Monday, February 2nd. The shares were sold at an average price of $5.01, for a total transaction of $44,263.35. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Casey O’connor sold 60,000 shares of the company’s stock in a transaction dated 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 owned 480,334 shares of the company’s stock, valued at $1,479,428.72. This represents a 11.10% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 316,757 shares of company stock worth $1,391,580 over the last quarter. 16.09% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in SFIX. State of Alaska Department of Revenue acquired a new position in shares of Stitch Fix in the third quarter worth about $32,000. Creative Planning acquired a new stake in Stitch Fix during the 2nd quarter valued at approximately $46,000. CIBC Bancorp USA Inc. acquired a new stake in Stitch Fix during the 3rd quarter valued at approximately $50,000. Farther Finance Advisors LLC grew its stake in Stitch Fix by 52.1% during the 4th quarter. Farther Finance Advisors LLC now owns 9,719 shares of the company’s stock valued at $51,000 after purchasing an additional 3,329 shares in the last quarter. Finally, Y Intercept Hong Kong Ltd acquired a new stake in Stitch Fix during the 3rd quarter valued at approximately $57,000. 71.04% of the stock is 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.