Stitch Fix, Inc. (NASDAQ:SFIX) Stock Rated "Hold" by Wall Street Brokerages

Key Points

• Stitch Fix has a consensus “Hold” rating from eight analysts: six holds, one sell and one buy. The average 12-month price target is $3.40, though several firms recently lowered their targets.
• SFIX shares opened at $2.39, near their 12-month low of $2.10, with the stock trading below its 50-day and 200-day moving averages.
• The company beat quarterly EPS expectations, reporting a loss of $0.02 per share versus the expected $0.06 loss, while revenue rose 4.2% year over year to $324.42 million. Insiders have sold 210,000 shares over the past 90 days.

Stitch Fix, Inc. (NASDAQ:SFIX - Get Free Report) has been given a consensus rating of "Hold" by the eight research firms that are presently covering the company, MarketBeat Ratings reports. One investment analyst has rated the stock with a sell recommendation, six have assigned a hold recommendation and one has assigned a buy recommendation to the company. The average 12-month price objective among analysts that have updated their coverage on the stock in the last year is $3.40.

SFIX has been the topic of a number of recent analyst reports. Weiss Ratings raised Stitch Fix from a "sell (e+)" rating to a "sell (d-)" rating in a report on Friday, October 9th. Mizuho raised shares of Stitch Fix from an "underperform" rating to a "neutral" rating and dropped their target price for the company from $3.00 to $2.50 in a report on Tuesday, September 29th. UBS Group reduced their price target on shares of Stitch Fix from $4.00 to $3.50 and set a "neutral" rating for the company in a research report on Thursday, September 24th. Telsey Advisory Group reduced their price target on shares of Stitch Fix from $5.00 to $3.00 and set a "market perform" rating for the company in a research report on Thursday, September 24th. Finally, Sanford C. Bernstein reissued a "market perform" rating and set a $4.00 price target on shares of Stitch Fix in a research note on Thursday, September 24th.

Insiders Place Their Bets

In related news, insider Anthony Bacos sold 70,000 shares of the firm's stock in a transaction that occurred on Monday, August 3rd. The stock was sold at an average price of $4.09, for a total value of $286,300.00. Following the completion of the transaction, the insider directly owned 951,994 shares of the company's stock, valued at $3,893,655.46. This trade represents a 6.85% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 210,000 shares of company stock valued at $814,800. Company insiders own 16.09% of the company's stock.

Institutional Trading of Stitch Fix

Several large investors have recently bought and sold shares of the company. State Street Corp raised its stake in shares of Stitch Fix by 10.1% during the 2nd quarter. State Street Corp now owns 3,503,504 shares of the company's stock worth $14,399,000 after buying an additional 322,030 shares during the last quarter. WINTON GROUP Ltd purchased a new stake in shares of Stitch Fix in the 2nd quarter worth about $263,000. Allworth Financial LP grew its stake in Stitch Fix by 44.4% in the 2nd quarter. Allworth Financial LP now owns 12,793 shares of the company's stock valued at $53,000 after acquiring an additional 3,932 shares during the last quarter. Corient Private Wealth LP acquired a new stake in Stitch Fix in the 2nd quarter valued at about $154,000. Finally, HB Wealth Management LLC acquired a new stake in Stitch Fix in the 2nd quarter valued at about $45,000. Institutional investors and hedge funds own 71.04% of the company's stock.

Stitch Fix Trading Down 2.4%

Shares of SFIX opened at $2.39 on Thursday. Stitch Fix has a twelve month low of $2.10 and a twelve month high of $5.74. The stock's 50 day moving average is $3.02 and its two-hundred day moving average is $3.45. The firm has a market capitalization of $319.31 million, a PE ratio of -23.90 and a beta of 2.34.

Stitch Fix (NASDAQ:SFIX - Get Free Report) last released its earnings results on Wednesday, September 23rd. The company reported ($0.02) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.06) by $0.04. The company had revenue of $324.42 million for the quarter, compared to analysts' expectations of $325.50 million. Stitch Fix had a negative return on equity of 5.75% and a negative net margin of 0.94%. The firm's quarterly revenue was up 4.2% on a year-over-year basis. During the same quarter in the previous year, the firm posted ($0.07) EPS. On average, sell-side analysts predict that Stitch Fix will post -0.14 EPS for the current year.

About Stitch Fix

Stitch Fix, Inc is an online personal styling company that uses data science, customer preferences and human expertise to recommend apparel and accessories. Customers complete a style profile and can receive personalized selections, known as “Fixes,” featuring clothing, shoes and accessories chosen for their individual preferences, sizes and budgets.

The company also operates Stitch Fix Freestyle, which allows customers to shop directly from a personalized online assortment rather than receiving a curated shipment.

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