Stitch Fix (NASDAQ:SFIX) Shares Cross Above 50 Day Moving Average - Here's What Happened

Key Points

• Stitch Fix shares rose 3.3%, trading as high as $2.90 and closing near $2.79, slightly above the 50-day moving average of $2.78. The stock remains below its 200-day moving average of $3.52.
• Analysts maintain a largely cautious outlook, with an average rating of “Hold” and an average price target of $3.40. Recent target cuts included Mizuho to $2.50, Telsey Advisory Group to $3.00, and UBS to $3.50.
• Stitch Fix exceeded quarterly earnings expectations, reporting a loss of $0.02 per share versus the expected $0.06 loss, while revenue reached $324.42 million and increased 4.2% year over year. Institutional investors own approximately 71.04% of the company’s shares.

Shares of Stitch Fix, Inc. (NASDAQ:SFIX - Get Free Report) crossed above its 50-day moving average during trading on Monday. The stock has a 50-day moving average of $2.78 and traded as high as $2.90. Stitch Fix shares last traded at $2.79, with a volume of 1,712,608 shares trading hands.

Analysts Set New Price Targets

Several research firms have issued reports on SFIX. Mizuho upgraded Stitch Fix from an "underperform" rating to a "neutral" rating and dropped their target price for the stock from $3.00 to $2.50 in a research report on Tuesday, September 29th. Telsey Advisory Group cut their price target on Stitch Fix from $5.00 to $3.00 and set a "market perform" rating for the company in a report on Thursday, September 24th. Sanford C. Bernstein reiterated a "market perform" rating and issued a $4.00 price target on shares of Stitch Fix in a research report on Thursday, September 24th. Northland Securities set a $4.00 price objective on Stitch Fix in a research note on Thursday, September 24th. Finally, UBS Group decreased their price objective on Stitch Fix from $4.00 to $3.50 and set a "neutral" rating on the stock in a research note on Thursday, September 24th. One investment analyst has rated the stock with a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, Stitch Fix currently has an average rating of "Hold" and an average price target of $3.40.

Stitch Fix Stock Up 3.3%

The company has a 50-day moving average of $2.78 and a 200 day moving average of $3.52. The firm has a market capitalization of $372.74 million, a PE ratio of -27.90 and a beta of 2.34.

Stitch Fix (NASDAQ:SFIX - Get Free Report) last announced its earnings results on Wednesday, September 23rd. The company reported ($0.02) earnings per share for the quarter, topping analysts' consensus estimates of ($0.06) by $0.04. The business had revenue of $324.42 million for the quarter, compared to analyst estimates of $325.50 million. Stitch Fix had a negative return on equity of 5.75% and a negative net margin of 0.94%. The company's quarterly revenue was up 4.2% compared to the same quarter last year. During the same period in the prior year, the company earned ($0.07) EPS. As a group, equities analysts anticipate that Stitch Fix, Inc. will post -0.15 EPS for the current fiscal year.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of SFIX. Quantbot Technologies LP purchased a new position in Stitch Fix in the second quarter worth $37,000. Caerus Investment Advisors LLC bought a new position in Stitch Fix in the first quarter valued at $36,000. HB Wealth Management LLC purchased a new stake in Stitch Fix during the second quarter valued at about $45,000. Hennion & Walsh Asset Management Inc. purchased a new stake in Stitch Fix during the second quarter valued at about $48,000. Finally, Allworth Financial LP lifted its stake in Stitch Fix by 44.4% during the second quarter. Allworth Financial LP now owns 12,793 shares of the company's stock worth $53,000 after purchasing an additional 3,932 shares during the last quarter. 71.04% of the stock is currently owned by institutional investors.

About Stitch Fix

Stitch Fix, Inc is an online personal styling company that uses data science, technology and human stylists to recommend apparel and accessories tailored to individual customers. Its service is designed to help consumers discover clothing through personalized selections based on their stated preferences, fit information, lifestyle and purchase history.

The company's primary offering is its “Fix” experience, in which customers receive a curated shipment of merchandise selected by Stitch Fix and can keep the items they want while returning the rest.

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