Reformation (NYSE:REF) Shares Down 5.3% - Here's What Happened

Key Points

• Reformation shares fell 5.3% to $13.85 in midday trading, with volume down 77% from the stock’s average session volume.
• Analysts remain broadly optimistic, with eight Buy ratings and two Holds producing a “Moderate Buy” consensus and an average price target of $19.25.
• The company beat quarterly expectations, reporting adjusted EPS of $0.23 versus $0.20 expected and revenue of $155.23 million, up 24.1% year over year. However, insiders sold 4.4 million shares worth approximately $61.4 million over the past 90 days.

Shares of Reformation Inc. (NYSE:REF - Get Free Report) were down 5.3% on Monday . The stock traded as low as $13.79 and last traded at $13.85. 126,508 shares were traded during mid-day trading, a decline of 77% from the average session volume of 539,479 shares. The stock had previously closed at $14.63.

Analyst Ratings Changes

Several equities research analysts recently commented on REF shares. Robert W. Baird initiated coverage on Reformation in a research note on Monday, August 24th. They issued an "outperform" rating and a $19.00 price target for the company. BTIG Research reissued a "buy" rating on shares of Reformation in a research report on Friday, September 11th. Guggenheim restated a "buy" rating and set a $20.00 price target on shares of Reformation in a report on Friday, September 11th. Wall Street Zen raised shares of Reformation to a "hold" rating in a research note on Saturday, August 8th. Finally, Citigroup began coverage on shares of Reformation in a report on Monday, August 24th. They issued a "buy" rating and a $20.00 price objective for the company. 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 company currently has an average rating of "Moderate Buy" and a consensus price target of $19.25.

Reformation Stock Performance

Reformation (NYSE:REF - Get Free Report) last released its earnings results on Thursday, September 10th. The company reported $0.23 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.20 by $0.03. The business had revenue of $155.23 million during the quarter, compared to analyst estimates of $154.61 million. The firm's quarterly revenue was up 24.1% on a year-over-year basis. As a group, analysts expect that Reformation Inc. will post 0.16 EPS for the current fiscal year.

Insiders Place Their Bets

In other Reformation news, Director Yael Aflalo sold 1,204,029 shares of the firm's stock in a transaction on Wednesday, July 29th. The shares were sold at an average price of $13.95, for a total value of $16,796,204.55. Following the sale, the director directly owned 11,725,803 shares in the company, valued at $163,574,951.85. This trade represents a 9.31% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. 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 transaction of $41,671,426.05. Following the transaction, 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. The SEC filing for this sale provides additional information. Insiders have sold 4,401,122 shares of company stock worth $61,395,652 in the last ninety days.

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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