Brokerages Set Stitch Fix, Inc. (NASDAQ:SFIX) Target Price at $5.67

Key Points

• Stitch Fix, Inc. has received an average recommendation of "Hold" from analysts, with four firms giving a hold rating and one issuing a buy rating.
• The stock has experienced significant insider selling, with Director Katrina Lake selling 151,150 shares for over $760,000, indicating possible concerns among insiders about the company's future performance.
• Stitch Fix reported a quarterly EPS of ($0.06), exceeding expectations, yet still grapples with a negative return on equity and fluctuating revenue growth.

Shares of Stitch Fix, Inc. (NASDAQ:SFIX - Get Free Report) have been given an average recommendation of "Hold" by the five ratings firms that are currently covering the stock, Marketbeat.com reports. Four equities research analysts have rated the stock with a hold recommendation and one has given a buy recommendation to the company. The average twelve-month price target among brokerages that have issued ratings on the stock in the last year is $5.6667.

SFIX has been the subject of a number of recent research reports. Telsey Advisory Group reiterated a "market perform" rating and issued a $6.00 price objective on shares of Stitch Fix in a report on Wednesday, June 11th. William Blair upgraded shares of Stitch Fix from a "market perform" rating to an "outperform" rating in a report on Monday, July 14th. Wall Street Zen cut shares of Stitch Fix from a "buy" rating to a "hold" rating in a report on Sunday, June 22nd. Finally, Zacks Research raised shares of Stitch Fix to a "hold" rating in a research report on Monday, August 11th.

Stitch Fix Price Performance

NASDAQ:SFIX traded down $0.33 during trading hours on Wednesday, reaching $5.47. The company's stock had a trading volume of 1,437,347 shares, compared to its average volume of 2,005,229. The company has a market cap of $713.78 million, a price-to-earnings ratio of -11.89 and a beta of 2.03. Stitch Fix has a one year low of $2.21 and a one year high of $6.99. The business's 50-day moving average is $4.93 and its 200-day moving average is $4.18.

Stitch Fix (NASDAQ:SFIX - Get Free Report) last issued its quarterly earnings data on Wednesday, June 11th. The company reported ($0.06) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.11) by $0.05. Stitch Fix had a negative net margin of 4.44% and a negative return on equity of 18.15%. Stitch Fix's quarterly revenue was up .7% on a year-over-year basis. During the same period in the previous year, the firm earned ($0.18) earnings per share. On average, sell-side analysts predict that Stitch Fix will post -0.44 EPS for the current fiscal year.

Insider Activity

In other Stitch Fix news, CFO David Aufderhaar sold 20,538 shares of the business's stock in a transaction on Tuesday, July 22nd. The shares were sold at an average price of $5.10, for a total transaction of $104,743.80. Following the completion of the transaction, the chief financial officer owned 937,338 shares of the company's stock, valued at $4,780,423.80. The trade was a 2.14% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Anthony Bacos sold 90,000 shares of the business's stock in a transaction on Tuesday, July 22nd. The stock was sold at an average price of $5.00, for a total transaction of $450,000.00. Following the transaction, the insider directly owned 829,966 shares of the company's stock, valued at approximately $4,149,830. This represents a 9.78% decrease in their position. The disclosure for this sale can be found here. Insiders sold 957,536 shares of company stock worth $4,845,302 in the last 90 days. Insiders own 16.95% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in the stock. State of Wyoming raised its position in shares of Stitch Fix by 170.4% during the second quarter. State of Wyoming now owns 68,243 shares of the company's stock valued at $252,000 after buying an additional 43,001 shares during the last quarter. Nomura Holdings Inc. bought a new stake in Stitch Fix in the second quarter valued at about $462,000. Tower Research Capital LLC TRC increased its stake in Stitch Fix by 171.0% in the second quarter. Tower Research Capital LLC TRC now owns 36,553 shares of the company's stock valued at $135,000 after acquiring an additional 23,066 shares during the period. Captrust Financial Advisors increased its stake in Stitch Fix by 14.5% in the second quarter. Captrust Financial Advisors now owns 500,326 shares of the company's stock valued at $1,851,000 after acquiring an additional 63,348 shares during the period. Finally, Shay Capital LLC bought a new stake in Stitch Fix in the second quarter valued at about $3,570,000. Institutional investors and hedge funds own 71.04% of the company's stock.

About Stitch Fix

Stitch Fix, Inc sells a range of apparel, shoes, and accessories for men, women, and kids through its website and mobile application in the United States and the United Kingdom. It offers denim, dresses, blouses, skirts, shoes, jewelry, and handbags under the Stitch Fix brand. The company was formerly known as rack habit inc.