Reformation (NYSE:REF) Reaches New 52-Week Low - Here's What Happened

Key Points

• Reformation shares fell 7.8% to a new 52-week low, reaching $13.18 before last trading at $13.35, despite an average Wall Street rating of “Buy” and an average price target of $19.25.
• Analyst sentiment remains broadly bullish, with new “outperform,” “buy,” and “overweight” ratings and price targets ranging from $18 to $21; however, reports indicate investors remain unconvinced.
• Short interest jumped 147.4% to 879,261 shares, while director Yael Aflalo and major shareholder Scsp Refo each reduced their holdings by 9.31% through large stock sales.

Reformation Inc. (NYSE:REF - Get Free Report) shares hit a new 52-week low during trading on Wednesday . The company traded as low as $13.18 and last traded at $13.35, with a volume of 365181 shares trading hands. The stock had previously closed at $14.48.

Key Stories Impacting Reformation

Here are the key news stories impacting Reformation this week:

• Positive Sentiment: Analyst coverage has been broadly favorable. Royal Bank of Canada initiated coverage with a “moderate buy” rating and an $18 price target, while Robert W. Baird began coverage with an “outperform” rating and a $19 target. These targets imply substantial potential appreciation if Reformation meets analysts’ expectations. Benzinga coverage report
• Positive Sentiment: Guggenheim upgraded Reformation to “strong-buy,” adding to the positive analyst sentiment surrounding the company. TickerReport Guggenheim upgrade
• Positive Sentiment: Additional firms initiated coverage on August 24, including JPMorgan with an “overweight” rating and a $21 target, and BTIG Research and Telsey Advisory Group with positive ratings and $20 targets. The concentration of bullish initiations may improve institutional awareness and investor confidence. TickerReport JPMorgan coverage
• Neutral Sentiment: Although Wall Street analysts are supportive, a recent report said investors remain unconvinced. This highlights a gap between analysts’ long-term expectations and current market sentiment. Reformation has Wall Street's backing, but investors aren't sold yet
• Negative Sentiment: Short interest surged 147.4% to 879,261 shares as of August 14, up from 355,460 shares at the end of July. While short interest represents only about 1.5% of shares outstanding and 1.8 days of average volume, the sharp increase signals growing bearish positioning and may be weighing on the stock.

Analyst Upgrades and Downgrades

REF has been the subject of several research analyst reports. Royal Bank Of Canada initiated coverage on shares of Reformation in a report on Monday. They issued an "outperform" rating and a $18.00 price objective for the company. Wall Street Zen raised shares of Reformation to a "hold" rating in a research note on Saturday, August 8th. Telsey Advisory Group began coverage on shares of Reformation in a research note on Monday. They issued an "outperform" rating and a $20.00 price target for the company. Guggenheim started coverage on shares of Reformation in a report on Monday. They issued a "buy" rating and a $20.00 price objective for the company. Finally, BTIG Research began coverage on shares of Reformation in a research note on Monday. They set a "buy" rating and a $20.00 price objective on the stock. One research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and one has assigned a Hold rating to the company's stock. According to MarketBeat, the stock currently has an average rating of "Buy" and an average target price of $19.25.

Reformation Stock Down 7.8%

Insiders Place Their Bets

In related news, Director Yael Aflalo sold 1,204,029 shares of Reformation stock in a transaction dated Wednesday, July 29th. The stock was sold at an average price of $13.95, for a total value of $16,796,204.55. Following the transaction, the director owned 11,725,803 shares of the company's stock, valued at approximately $163,574,951.85. This trade represents a 9.31% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, major shareholder Scsp Refo sold 2,987,199 shares of the business's stock in a transaction dated Friday, July 31st. The stock was sold at an average price of $13.95, for a total value of $41,671,426.05. Following the sale, the insider owned 29,091,749 shares in the company, valued at approximately $405,829,898.55. The trade was a 9.31% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure.

Reformation Company Profile

Reformation Inc provide sustainable womenswear brand. Reformation Inc is based in LOS ANGELES.

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