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

Key Points

• Analysts have a consensus rating of "Reduce" on Stitch Fix from five covering firms (one sell, four hold) with an average 12‑month price target of $5.00, though a few firms recently cut targets while one upgraded to a buy.
• Company insiders have been selling shares recently — notably Casey O'connor sold 60,000 shares at about $3.08 under a Rule 10b5‑1 plan — with insiders selling 153,891 shares (~$542k) over the last 90 days and owning 16.09% of the stock.
• Stitch Fix beat quarterly expectations (EPS -$0.02 vs. -$0.05 est., revenue $341.3M vs. $334.7M), and its stock is trading near $3.99 with a market cap of ~$545M and a 12‑month range of $2.95–$5.94.

Stitch Fix, Inc. (NASDAQ:SFIX - Get Free Report) has been assigned an average rating of "Reduce" from the five analysts that are currently covering the firm, MarketBeat Ratings reports. One investment analyst has rated the stock with a sell recommendation and four have assigned a hold recommendation to the company. The average 12-month price target among brokers that have issued a report on the stock in the last year is $5.00.

Several analysts have recently weighed in on the company. William Blair restated a "mixed" rating on shares of Stitch Fix in a report on Friday, March 6th. UBS Group reduced their price target on Stitch Fix from $6.00 to $4.00 and set a "neutral" rating on the stock in a report on Tuesday, March 3rd. Weiss Ratings restated a "sell (d-)" rating on shares of Stitch Fix in a report on Thursday, January 22nd. Telsey Advisory Group reduced their price target on Stitch Fix from $6.00 to $5.00 and set a "market perform" rating on the stock in a report on Thursday, March 12th. Finally, Wall Street Zen upgraded Stitch Fix from a "hold" rating to a "buy" rating in a report on Saturday, April 18th.

Insider Activity at Stitch Fix

In related news, insider Casey O'connor sold 60,000 shares of the company's stock in a transaction that occurred on Friday, April 10th. The stock was sold at an average price of $3.08, for a total value of $184,800.00. Following the sale, the insider directly owned 480,334 shares in the company, valued at $1,479,428.72. This represents a 11.10% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Katrina Lake sold 8,835 shares of the company's stock in a transaction that occurred on Monday, February 2nd. The shares were sold at an average price of $5.01, for a total value of $44,263.35. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 153,891 shares of company stock worth $541,995 over the last ninety days. Insiders own 16.09% of the company's stock.

Institutional Trading of Stitch Fix

Several institutional investors have recently added to or reduced their stakes in SFIX. Arrowstreet Capital Limited Partnership boosted its holdings in Stitch Fix by 302.9% in the third quarter. Arrowstreet Capital Limited Partnership now owns 2,897,171 shares of the company's stock valued at $12,603,000 after acquiring an additional 2,178,156 shares during the last quarter. Marshall Wace LLP boosted its holdings in Stitch Fix by 4,898.1% in the second 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 holdings in Stitch Fix by 73.3% in 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 last quarter. Working Capital Advisors UK Ltd. boosted its holdings in Stitch Fix by 15.9% in the third quarter. Working Capital Advisors UK Ltd. now owns 11,046,077 shares of the company's stock valued at $48,050,000 after acquiring an additional 1,512,475 shares during the last quarter. Finally, Archon Capital Management LLC bought a new stake in Stitch Fix in the fourth quarter valued at approximately $7,702,000. 71.04% of the stock is currently owned by institutional investors.

Stitch Fix Trading Up 0.5%

Shares of NASDAQ SFIX opened at $3.99 on Thursday. The company has a market cap of $544.71 million, a price-to-earnings ratio of -30.69 and a beta of 2.33. Stitch Fix has a 12 month low of $2.95 and a 12 month high of $5.94. The stock has a 50-day moving average price of $3.38 and a two-hundred day moving average price of $4.25.

Stitch Fix (NASDAQ:SFIX - Get Free Report) last released its quarterly earnings results on Wednesday, March 11th. The company reported ($0.02) earnings per share for the quarter, topping the consensus estimate of ($0.05) by $0.03. The company had revenue of $341.30 million for the quarter, compared to analysts' expectations of $334.74 million. Stitch Fix had a negative return on equity of 12.23% and a negative net margin of 1.89%.The business's quarterly revenue was up 9.4% compared to the same quarter last year. During the same period in the previous year, the business posted ($0.05) earnings per share. On average, sell-side analysts predict that Stitch Fix will post -0.19 earnings per share for the current year.

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.

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.