Reformation (NYSE:REF) Shares Gap Down - Time to Sell?

Key Points

• Reformation shares fell sharply at the open, dropping from a prior close of $14.63 to $13.46 before last trading near $13.61.
• Despite the decline, analysts remain generally bullish, with eight Buy ratings and two Holds, a “Moderate Buy” consensus, and an average price target of $19.25.
• The company beat quarterly earnings and revenue estimates, with EPS of $0.23 and revenue of $155.23 million, but insiders sold approximately $61.4 million of stock over the past three months.

Reformation Inc. (NYSE:REF - Get Free Report) shares gapped down before the market opened on Tuesday . The stock had previously closed at $14.63, but opened at $13.46. Reformation shares last traded at $13.61, with a volume of 12,199 shares.

Analyst Ratings Changes

A number of research analysts have recently weighed in on the company. Zacks Research upgraded Reformation to a "hold" rating in a report on Tuesday, August 25th. Guggenheim reiterated a "buy" rating and set a $20.00 price target on shares of Reformation in a report on Friday, September 11th. Robert W. Baird assumed coverage on Reformation in a research report on Monday, August 24th. They issued an "outperform" rating and a $19.00 price target for the company. William Blair started coverage on Reformation in a research note on Monday, August 24th. They set an "outperform" rating on the stock. Finally, Telsey Advisory Group started coverage on shares of Reformation in a report on Monday, August 24th. They set an "outperform" rating and a $20.00 price objective on the stock. Eight research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $19.25.

Reformation Stock Up 2.3%

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 firm had revenue of $155.23 million for the quarter, compared to the consensus estimate of $154.61 million. Reformation's quarterly revenue was up 24.1% on a year-over-year basis. On average, equities research analysts expect that Reformation Inc. will post 0.16 earnings per share for the current fiscal year.

Insider Buying and Selling at Reformation

In other Reformation news, Director Yael Aflalo sold 1,204,029 shares of the company's stock in a transaction on 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 completion of the transaction, the director owned 11,725,803 shares in the company, valued at $163,574,951.85. This represents a 9.31% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, major shareholder Scsp Refo sold 2,987,199 shares of the firm's stock in a transaction on Friday, July 31st. The shares were sold at an average price of $13.95, for a total value of $41,671,426.05. Following the sale, the insider directly owned 29,091,749 shares of the company's stock, valued at approximately $405,829,898.55. This represents a 9.31% decrease in their ownership of the stock. 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 worth $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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.