Reformation (NYSE:REF) Hits New 1-Year Low - Should You Sell?

Key Points

• Reformation shares hit a new 52-week low of $12.12, below the 50-day moving average of $14.53.
• Despite the decline, analysts maintain a “Moderate Buy” consensus with an average price target of $19.25; eight analysts rate the stock a Buy and two rate it Hold.
• The company exceeded quarterly expectations, reporting $0.23 in EPS and $155.23 million in revenue, while insiders sold 4.4 million shares worth approximately $61.4 million during the last quarter.

Reformation Inc. (NYSE:REF - Get Free Report)'s stock price reached a new 52-week low during mid-day trading on Wednesday. The stock traded as low as $12.12 and last traded at $12.12, with a volume of 26569 shares traded. The stock had previously closed at $12.27.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently commented on the company. Robert W. Baird began coverage on Reformation in a report on Monday, August 24th. They issued an "outperform" rating and a $19.00 price target for the company. JPMorgan Chase & Co. initiated coverage on Reformation in a research note on Monday, August 24th. They set an "overweight" rating and a $21.00 price objective on the stock. BTIG Research reaffirmed a "buy" rating on shares of Reformation in a report on Friday, September 11th. Morgan Stanley assumed coverage on Reformation in a research report on Monday, August 24th. They set an "equal weight" rating and a $16.00 price target on the stock. Finally, Royal Bank Of Canada reissued an "outperform" rating and issued a $18.00 price target on shares of Reformation in a report on Friday, September 11th. Eight analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, Reformation presently has a consensus rating of "Moderate Buy" and an average target price of $19.25.

Reformation Price Performance

The company has a 50-day simple moving average of $14.53.

Reformation (NYSE:REF - Get Free Report) last posted its earnings results on Thursday, September 10th. The company reported $0.23 EPS for the quarter, topping the consensus estimate of $0.20 by $0.03. The business had revenue of $155.23 million for the quarter, compared to analysts' expectations of $154.61 million. The business's revenue for the quarter was up 24.1% compared to the same quarter last year. On average, analysts expect that Reformation Inc. will post 0.16 earnings per share for the current fiscal year.

Insider Transactions at Reformation

In other news, Director Yael Aflalo sold 60,298 shares of Reformation stock in a transaction dated Tuesday, September 1st. The stock was sold at an average price of $13.95, for a total transaction of $841,157.10. Following the completion of the sale, the director owned 11,665,505 shares in the company, valued at approximately $162,733,794.75. This trade represents a 0.51% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, major shareholder Scsp Refo sold 149,596 shares of the business's stock in a transaction dated Tuesday, September 1st. The stock was sold at an average price of $13.95, for a total value of $2,086,864.20. Following the transaction, the insider directly owned 28,942,153 shares of the company's stock, valued at $403,743,034.35. The trade was a 0.51% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders have sold 4,401,122 shares of company stock valued at $61,395,652.

Reformation Company Profile

Reformation, Inc is a fashion company that designs and sells women's clothing, footwear and accessories under the Reformation brand. Its product range includes dresses, tops, denim, knitwear, outerwear, swimwear, bridal apparel and related accessories, with collections marketed around contemporary style and more sustainable production practices.

The company sells its products through its e-commerce platform and a network of retail stores, serving customers in the United States and select international markets.

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