Reformation (NYSE:REF) Reaches New 52-Week Low - Should You Sell?

Key Points

• Reformation shares hit a new 52-week low, falling to $12.80 before last trading at $12.95, down from a previous close of $13.60.
• Despite the stock’s decline, analysts remain broadly positive, with eight Buy ratings and two Holds. The consensus rating is “Moderate Buy,” with an average price target of $19.25.
• The company exceeded quarterly expectations, reporting $0.23 in EPS versus a $0.20 estimate and $155.23 million in revenue, up 24.1% year over year; however, insiders sold 4.4 million shares worth approximately $61.4 million over the past three months.

Shares of Reformation Inc. (NYSE:REF - Get Free Report) reached a new 52-week low during mid-day trading on Wednesday . The company traded as low as $12.80 and last traded at $12.95, with a volume of 52270 shares traded. The stock had previously closed at $13.60.

Analyst Upgrades and Downgrades

A number of analysts have weighed in on the stock. Telsey Advisory Group started coverage on shares of Reformation in a research note on Monday, August 24th. They set an "outperform" rating and a $20.00 target price on the stock. William Blair assumed coverage on shares of Reformation in a report on Monday, August 24th. They issued an "outperform" rating for the company. Wall Street Zen raised Reformation to a "hold" rating in a report on Saturday, August 8th. Morgan Stanley initiated coverage on shares of Reformation in a research note on Monday, August 24th. They issued an "equal weight" rating and a $16.00 price objective on the stock. Finally, Zacks Research upgraded Reformation to a "hold" rating in a report on Tuesday, August 25th. Eight investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $19.25.

Reformation Stock Performance

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

Insider Buying and Selling at Reformation

In related news, major shareholder Scsp Refo sold 149,596 shares of Reformation stock in a transaction on Tuesday, September 1st. The shares were sold at an average price of $13.95, for a total value of $2,086,864.20. Following the completion of the sale, the insider owned 28,942,153 shares of the company's stock, valued at approximately $403,743,034.35. This trade represents a 0.51% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director Yael Aflalo sold 60,298 shares of the company's stock in a transaction on Tuesday, September 1st. The stock was sold at an average price of $13.95, for a total transaction of $841,157.10. Following the transaction, the director owned 11,665,505 shares in the company, valued at approximately $162,733,794.75. 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 three months, insiders sold 4,401,122 shares of company stock valued at $61,395,652.

About Reformation

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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