Stitch Fix, Inc. (NASDAQ:SFIX) Given Average Rating of "Hold" by Brokerages

Key Points

• Stitch Fix has an average “Hold” rating from six analysts: one sell, four holds and one buy. The average 12-month price target is $5.125, compared with the stock’s reported opening price of $4.02.
• The company beat quarterly expectations, reporting an adjusted loss of $0.01 per share versus the $0.06 consensus loss, while revenue reached $340.28 million and rose 4.7% year over year.
• Insiders have sold 657,971 shares worth approximately $2.64 million over the past 90 days, while institutional investors own 71.04% of the company.

Stitch Fix, Inc. (NASDAQ:SFIX - Get Free Report) has received an average recommendation of "Hold" from the six ratings firms that are currently covering the stock, Marketbeat reports. One analyst has rated the stock with a sell rating, four have assigned a hold rating and one has issued a buy rating on the company. The average 1 year target price among brokers that have issued ratings on the stock in the last year is $5.1250.

A number of analysts have recently issued reports on SFIX shares. Weiss Ratings upgraded shares of Stitch Fix from a "sell (e+)" rating to a "sell (d-)" rating in a research note on Monday, July 13th. Wall Street Zen lowered shares of Stitch Fix from a "buy" rating to a "hold" rating in a report on Saturday, May 2nd. UBS Group raised their target price on Stitch Fix from $4.00 to $4.50 and gave the company a "neutral" rating in a research note on Thursday, June 11th. Finally, Northland Securities started coverage on Stitch Fix in a research report on Thursday, May 28th. They set an "outperform" rating and a $5.00 target price on the stock.

Stitch Fix Stock Performance

SFIX stock opened at $4.02 on Friday. Stitch Fix has a 1 year low of $2.95 and a 1 year high of $5.94. The firm has a market cap of $536.39 million, a P/E ratio of -50.25 and a beta of 2.26. The stock has a 50-day simple moving average of $3.85 and a 200-day simple moving average of $3.81.

Stitch Fix (NASDAQ:SFIX - Get Free Report) last announced its earnings results on Wednesday, June 10th. The company reported ($0.01) EPS for the quarter, beating the consensus estimate of ($0.06) by $0.05. The business had revenue of $340.28 million for the quarter, compared to the consensus estimate of $333.51 million. Stitch Fix had a negative return on equity of 9.35% and a negative net margin of 1.43%.The company's revenue was up 4.7% on a year-over-year basis. During the same period last year, the business posted ($0.06) EPS. On average, equities research analysts predict that Stitch Fix will post -0.14 EPS for the current year.

Insider Buying and Selling

In other Stitch Fix news, CFO David Aufderhaar sold 67,960 shares of the company's stock in a transaction that occurred on Monday, July 6th. The stock was sold at an average price of $3.79, for a total value of $257,568.40. Following the transaction, the chief financial officer directly owned 1,102,369 shares of the company's stock, valued at $4,177,978.51. This represents a 5.81% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Anthony Bacos sold 70,000 shares of the stock in a transaction that occurred on Monday, July 27th. The shares were sold at an average price of $3.76, for a total value of $263,200.00. Following the transaction, the insider owned 971,994 shares of the company's stock, valued at approximately $3,654,697.44. This trade represents a 6.72% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 657,971 shares of company stock valued at $2,638,517. 16.09% of the stock is owned by insiders.

Institutional Trading of Stitch Fix

Hedge funds have recently made changes to their positions in the stock. Arrowstreet Capital Limited Partnership increased its stake in shares of Stitch Fix by 302.9% in the third quarter. Arrowstreet Capital Limited Partnership now owns 2,897,171 shares of the company's stock worth $12,603,000 after buying an additional 2,178,156 shares during the last quarter. Marshall Wace LLP boosted its stake in Stitch Fix by 4,898.1% during the 2nd quarter. Marshall Wace LLP now owns 2,010,034 shares of the company's stock valued at $7,437,000 after acquiring an additional 1,969,818 shares during the last quarter. Goldman Sachs Group Inc. boosted its stake in Stitch Fix by 73.3% during the 4th quarter. Goldman Sachs Group Inc. now owns 3,664,995 shares of the company's stock valued at $19,241,000 after acquiring an additional 1,549,902 shares during the last quarter. Archon Capital Management LLC acquired a new position in Stitch Fix during the 4th quarter worth $7,702,000. Finally, Intrinsic Edge Capital Management LLC acquired a new position in Stitch Fix during the 4th quarter worth $6,739,000. Institutional investors and hedge funds own 71.04% of the company's stock.

About Stitch Fix

Stitch Fix, Inc, headquartered in San Francisco, California, is a leading online personal styling service that blends data science with human expertise to deliver curated clothing and accessory selections. Founded in 2011 by Katrina Lake, the company pioneered a subscription-based model in which customers receive periodic “Fixes” tailored to their personal style, size and budget. Each shipment arrives with several handpicked items along with styling notes, allowing clients to review, purchase and return pieces at their convenience.

Clients begin by completing an online style profile that captures their measurements, design preferences and lifestyle needs.

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