Stitch Fix, Inc. (NASDAQ:SFIX) Receives Average Rating of "Hold" from Analysts

Key Points

• Stitch Fix has a consensus analyst rating of “Hold” from six analysts, with one sell, four hold, and one buy recommendation. The average 12-month price target is about $5.13.
• The stock was down 1.4% in Tuesday trading to $3.79, leaving it well below its 52-week high of $5.94. It also has a market cap of roughly $505 million and remains volatile with a beta of 2.26.
• In its latest earnings report, Stitch Fix beat expectations with a smaller-than-expected loss of $0.01 per share and revenue of $340.28 million, up 4.7% year over year. Despite the beat, analysts still expect the company to post a loss for the current fiscal year.

Stitch Fix, Inc. (NASDAQ:SFIX - Get Free Report) has earned a consensus rating of "Hold" from the six analysts that are presently covering the stock, MarketBeat.com reports. One research analyst has rated the stock with a sell recommendation, four have issued a hold recommendation and one has issued a buy recommendation on the company. The average twelve-month price target among brokerages that have issued a report on the stock in the last year is $5.1250.

A number of research firms have commented on SFIX. Telsey Advisory Group reduced their price objective on shares of Stitch Fix from $6.00 to $5.00 and set a "market perform" rating on the stock in a research note on Thursday, March 12th. Wall Street Zen lowered shares of Stitch Fix from a "buy" rating to a "hold" rating in a research note on Saturday, May 2nd. Northland Securities assumed coverage on shares of Stitch Fix in a research report on Thursday, May 28th. They set an "outperform" rating and a $5.00 price target on the stock. Weiss Ratings downgraded Stitch Fix from a "sell (d-)" rating to a "sell (e+)" rating in a research note on Friday, June 12th. Finally, UBS Group upped their price objective on Stitch Fix from $4.00 to $4.50 and gave the company a "neutral" rating in a research note on Thursday, June 11th.

Stitch Fix Trading Down 1.4%

NASDAQ SFIX traded down $0.06 during mid-day trading on Tuesday, reaching $3.79. 353,742 shares of the company's stock traded hands, compared to its average volume of 2,155,370. Stitch Fix has a 1-year low of $2.95 and a 1-year high of $5.94. The company has a fifty day simple moving average of $3.70 and a 200-day simple moving average of $3.98. The company has a market cap of $505.03 million, a price-to-earnings ratio of -47.31 and a beta of 2.26.

Stitch Fix (NASDAQ:SFIX - Get Free Report) last released 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 company had revenue of $340.28 million during the quarter, compared to analysts' expectations of $333.51 million. Stitch Fix had a negative return on equity of 9.35% and a negative net margin of 1.43%.The business's revenue was up 4.7% on a year-over-year basis. During the same period in the prior year, the business posted ($0.06) EPS. Equities research analysts forecast that Stitch Fix will post -0.14 earnings per share for the current fiscal year.

Insider Buying and Selling at Stitch Fix

In related news, insider Anthony Bacos sold 70,011 shares of the business's stock in a transaction dated Monday, June 29th. The shares were sold at an average price of $4.42, for a total transaction of $309,448.62. Following the completion of the sale, the insider owned 1,051,994 shares of the company's stock, valued at $4,649,813.48. This represents a 6.24% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Casey O'connor sold 60,000 shares of the firm's stock in a transaction dated Friday, April 10th. The stock was sold at an average price of $3.08, for a total transaction of $184,800.00. Following the completion of the transaction, the insider directly owned 480,334 shares in the company, valued at $1,479,428.72. This represents a 11.10% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 370,011 shares of company stock valued at $1,518,549. 16.09% of the stock is owned by insiders.

Institutional Trading of Stitch Fix

Several hedge funds have recently made changes to their positions in SFIX. Vanguard Group Inc. increased its position in Stitch Fix by 3.2% in the third quarter. Vanguard Group Inc. now owns 7,682,725 shares of the company's stock worth $33,420,000 after buying an additional 240,584 shares during the period. Goldman Sachs Group Inc. boosted its holdings in shares of Stitch Fix by 73.3% during the fourth 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 period. State Street Corp grew its position in shares of Stitch Fix by 18.6% during the fourth quarter. State Street Corp now owns 3,239,044 shares of the company's stock worth $17,005,000 after acquiring an additional 508,588 shares during the last quarter. Arrowstreet Capital Limited Partnership grew its position in shares of Stitch Fix by 302.9% during the third quarter. Arrowstreet Capital Limited Partnership now owns 2,897,171 shares of the company's stock worth $12,603,000 after acquiring an additional 2,178,156 shares during the last quarter. Finally, Geode Capital Management LLC increased its holdings in shares of Stitch Fix by 10.5% in the 4th quarter. Geode Capital Management LLC now owns 2,791,632 shares of the company's stock worth $14,659,000 after acquiring an additional 266,356 shares during the period. Institutional investors own 71.04% of the company's stock.

Stitch Fix Company Profile

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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