Stitch Fix, Inc. (NASDAQ:SFIX) Receives Consensus Recommendation of "Hold" from Brokerages

Key Points

• Stitch Fix, Inc. has received an average recommendation of "Hold" from five research firms, with one analyst providing a buy recommendation and the average twelve-month price target set at $5.67.
• Insider trading activity shows significant selling, with one insider, Anthony Bacos, selling 90,000 shares at $5.00, leading to a 9.78% decrease in his holdings.
• Stitch Fix reported a quarterly earnings per share of ($0.06), surpassing expectations, alongside a 0.7% increase in revenue year-over-year.

Stitch Fix, Inc. (NASDAQ:SFIX - Get Free Report) has earned an average rating of "Hold" from the five brokerages that are presently covering the company, Marketbeat Ratings reports. Four analysts have rated the stock with a hold recommendation and one has issued a buy recommendation on the company. The average 12 month target price among brokerages that have issued ratings on the stock in the last year is $5.6667.

Several brokerages recently weighed in on SFIX. Zacks Research raised Stitch Fix to a "hold" rating in a research report on Monday, August 11th. Wall Street Zen lowered Stitch Fix from a "buy" rating to a "hold" rating in a research report on Sunday, June 22nd. Telsey Advisory Group reaffirmed a "market perform" rating and issued a $6.00 target price on shares of Stitch Fix in a research report on Wednesday, June 11th. Finally, William Blair raised Stitch Fix from a "market perform" rating to an "outperform" rating in a research report on Monday, July 14th.

Stitch Fix Trading Down 5.7%

Shares of Stitch Fix stock traded down $0.33 during trading hours on Wednesday, reaching $5.47. 1,437,347 shares of the company's stock were exchanged, compared to its average volume of 2,005,229. Stitch Fix has a 52-week low of $2.21 and a 52-week high of $6.99. The firm has a market capitalization of $713.78 million, a price-to-earnings ratio of -11.89 and a beta of 2.03. The company has a fifty day moving average of $4.93 and a 200-day moving average of $4.18.

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

Insider Buying and Selling

In other Stitch Fix news, insider Anthony Bacos sold 90,000 shares of the firm's stock in a transaction dated Tuesday, July 22nd. The stock was sold at an average price of $5.00, for a total value of $450,000.00. Following the transaction, the insider directly owned 829,966 shares of the company's stock, valued at $4,149,830. This trade represents a 9.78% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Casey O'connor sold 50,000 shares of the firm's stock in a transaction dated Monday, July 21st. The shares were sold at an average price of $4.72, for a total value of $236,000.00. Following the completion of the transaction, the insider directly owned 508,621 shares in the company, valued at $2,400,691.12. This trade represents a 8.95% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders sold 957,536 shares of company stock valued at $4,845,302. 16.95% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in SFIX. Wescott Financial Advisory Group LLC purchased a new stake in shares of Stitch Fix during the first quarter worth about $32,000. First Dallas Securities Inc. purchased a new stake in shares of Stitch Fix during the second quarter worth about $37,000. Ameritas Investment Partners Inc. grew its stake in Stitch Fix by 32.3% in the second quarter. Ameritas Investment Partners Inc. now owns 10,839 shares of the company's stock worth $40,000 after purchasing an additional 2,645 shares in the last quarter. 111 Capital acquired a new position in Stitch Fix in the second quarter worth about $44,000. Finally, Creative Planning acquired a new position in Stitch Fix in the second quarter worth about $46,000. 71.04% of the stock is owned by hedge funds and other institutional investors.

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.