Stitch Fix (NASDAQ:SFIX) PT Set at $2.50 by Mizuho

Key Points

• Mizuho set a $2.50 price target for Stitch Fix and maintained a neutral rating, implying only 1.21% upside from the prior close.
• Analyst sentiment is broadly cautious: Stitch Fix has an average “Hold” rating and a $3.40 consensus price target, with recent downgrades and target-price cuts from several firms.
• Stitch Fix reported a quarterly loss of $0.02 per share, beating estimates, while revenue rose 4.2% year over year to $324.42 million; however, insiders have sold 417,960 shares over the past 90 days.

Stitch Fix (NASDAQ:SFIX - Get Free Report) has been assigned a $2.50 target price by stock analysts at Mizuho in a report released on Tuesday, Marketbeat reports. The brokerage currently has a "neutral" rating on the stock. Mizuho's price target would suggest a potential upside of 1.21% from the company's previous close.

SFIX has been the topic of several other research reports. UBS Group cut their price objective on shares of Stitch Fix from $4.00 to $3.50 and set a "neutral" rating on the stock in a report on Thursday. Weiss Ratings downgraded shares of Stitch Fix from a "sell (d-)" rating to a "sell (e+)" rating in a report on Friday. Northland Securities set a $4.00 price objective on shares of Stitch Fix in a report on Thursday. William Blair downgraded shares of Stitch Fix from an "outperform" rating to a "market perform" rating in a report on Thursday. Finally, Telsey Advisory Group cut their price objective on shares of Stitch Fix from $5.00 to $3.00 and set a "market perform" rating on the stock in a report on Thursday, September 24th. One research analyst has rated the stock with a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, Stitch Fix currently has an average rating of "Hold" and an average price target of $3.40.

Stitch Fix Stock Performance

Shares of NASDAQ SFIX opened at $2.47 on Tuesday. Stitch Fix has a fifty-two week low of $2.10 and a fifty-two week high of $5.74. The company has a market cap of $329.57 million, a PE ratio of -24.70 and a beta of 2.27. The business has a 50-day simple moving average of $3.35 and a two-hundred day simple moving average of $3.51.

Stitch Fix (NASDAQ:SFIX - Get Free Report) last posted its quarterly earnings data on Wednesday, September 23rd. The company reported ($0.02) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.06) by $0.04. Stitch Fix had a negative net margin of 0.94% and a negative return on equity of 5.75%. The firm had revenue of $324.42 million for the quarter, compared to the consensus estimate of $325.50 million. During the same quarter in the prior year, the company posted ($0.07) earnings per share. The company's revenue for the quarter was up 4.2% compared to the same quarter last year. On average, sell-side analysts predict that Stitch Fix will post -0.12 earnings per share for the current fiscal year.

Insider Transactions at Stitch Fix

In related news, insider Anthony Bacos sold 70,000 shares of Stitch Fix stock in a transaction dated Monday, August 3rd. The stock was sold at an average price of $4.09, for a total transaction of $286,300.00. Following the completion of the sale, the insider owned 951,994 shares of the company's stock, valued at $3,893,655.46. The trade was a 6.85% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO David Aufderhaar sold 67,960 shares of the company's stock in a transaction on Monday, July 6th. The shares were sold at an average price of $3.79, for a total transaction of $257,568.40. Following the completion of the sale, the chief financial officer directly owned 1,102,369 shares in the company, valued at $4,177,978.51. This trade represents a 5.81% 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 417,960 shares of company stock valued at $1,591,068 in the last ninety days. Corporate insiders own 16.09% of the company's stock.

Institutional Trading of Stitch Fix

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. State Street Corp increased its stake in shares of Stitch Fix by 10.1% in the second quarter. State Street Corp now owns 3,503,504 shares of the company's stock worth $14,399,000 after acquiring an additional 322,030 shares during the period. WINTON GROUP Ltd acquired a new stake in shares of Stitch Fix in the second quarter worth $263,000. Allworth Financial LP increased its stake in shares of Stitch Fix by 44.4% in the second quarter. Allworth Financial LP now owns 12,793 shares of the company's stock worth $53,000 after acquiring an additional 3,932 shares during the period. Corient Private Wealth LP acquired a new stake in shares of Stitch Fix in the second quarter worth $154,000. Finally, HB Wealth Management LLC acquired a new stake in shares of Stitch Fix in the second quarter worth $45,000. Institutional investors and hedge funds own 71.04% of the company's stock.

About Stitch Fix

Stitch Fix, Inc is an online personal styling company that uses data science, personalization technology and human stylists to recommend apparel and accessories to customers. Its offerings include clothing, shoes and accessories across categories such as women's, men's and children's apparel, with selections tailored to individual preferences, sizes, budgets and lifestyles.

The company's primary service, traditionally known as a “Fix,” delivers a curated selection of items for customers to try at home, after which they can purchase the items they want and return the rest.