Stitch Fix (NASDAQ:SFIX) Raised to Strong-Buy at Zacks Research

Key Points

• Stitch Fix has been upgraded from a "hold" to a "strong-buy" rating by Zacks Research, while other analysts maintain mixed ratings, including a "sell" and several "hold" ratings.
• The company's stock has seen a 6.2% decline recently, trading at around $4.09 with a market capitalization of $548.51 million.
• In its latest earnings report, Stitch Fix reported revenue of $311.23 million for the quarter, which was above analysts' expectations, but revenue was down 2.6% compared to the previous year.

Stitch Fix (NASDAQ:SFIX - Get Free Report) was upgraded by Zacks Research from a "hold" rating to a "strong-buy" rating in a research report issued to clients and investors on Wednesday,Zacks.com reports.

Other equities research analysts have also recently issued reports about the stock. Weiss Ratings reiterated a "sell (d-)" rating on shares of Stitch Fix in a research report on Wednesday, October 8th. UBS Group reissued a "neutral" rating on shares of Stitch Fix in a research note on Wednesday, September 17th. Sanford C. Bernstein reiterated a "market perform" rating and issued a $6.00 price target on shares of Stitch Fix in a research note on Thursday, September 25th. Telsey Advisory Group restated a "market perform" rating and set a $6.00 price objective on shares of Stitch Fix in a research report on Thursday, September 25th. Finally, Wall Street Zen downgraded shares of Stitch Fix from a "buy" rating to a "hold" rating in a research report on Sunday, June 22nd. One analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus price target of $6.00.

Stitch Fix Trading Down 6.2%

Stitch Fix stock opened at $4.09 on Wednesday. Stitch Fix has a 12-month low of $2.60 and a 12-month high of $6.99. The stock has a market cap of $548.51 million, a P/E ratio of -8.89 and a beta of 2.08. The company has a 50-day moving average price of $5.00 and a 200 day moving average price of $4.31.

Stitch Fix (NASDAQ:SFIX - Get Free Report) last released its quarterly earnings data on Wednesday, September 24th. The company reported ($0.07) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.10) by $0.03. Stitch Fix had a negative net margin of 2.27% and a negative return on equity of 14.57%. The firm had revenue of $311.23 million during the quarter, compared to analysts' expectations of $307.15 million. During the same period last year, the business earned ($0.30) earnings per share. Stitch Fix's revenue was down 2.6% compared to the same quarter last year. Stitch Fix has set its Q1 2026 guidance at EPS. FY 2026 guidance at EPS. As a group, analysts forecast that Stitch Fix will post -0.44 EPS for the current year.

Insider Buying and Selling at Stitch Fix

In other news, insider Casey O'connor sold 50,000 shares of Stitch Fix stock in a transaction on Monday, July 21st. The shares were sold at an average price of $4.72, for a total value of $236,000.00. Following the transaction, the insider directly owned 508,621 shares of the company's stock, valued at $2,400,691.12. The trade was a 8.95% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, Director Katrina Lake sold 453,485 shares of Stitch Fix stock in a transaction on Tuesday, July 22nd. The shares were sold at an average price of $5.06, for a total transaction of $2,294,634.10. The disclosure for this sale can be found here. Over the last quarter, insiders sold 1,047,536 shares of company stock valued at $5,350,202. Insiders own 16.95% of the company's stock.

Hedge Funds Weigh In On Stitch Fix

Several institutional investors have recently bought and sold shares of the company. CWM LLC increased its stake in Stitch Fix by 171.9% in the 3rd quarter. CWM LLC now owns 59,049 shares of the company's stock valued at $257,000 after buying an additional 37,328 shares during the period. State of Wyoming increased its stake in Stitch Fix by 170.4% in the 2nd 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 period. Nomura Holdings Inc. acquired a new position in Stitch Fix in the 2nd quarter valued at $462,000. Tower Research Capital LLC TRC increased its stake in Stitch Fix by 171.0% in the 2nd quarter. Tower Research Capital LLC TRC now owns 36,553 shares of the company's stock valued at $135,000 after buying an additional 23,066 shares during the period. Finally, Captrust Financial Advisors increased its stake in Stitch Fix by 14.5% in the 2nd quarter. Captrust Financial Advisors now owns 500,326 shares of the company's stock valued at $1,851,000 after buying an additional 63,348 shares during the period. 71.04% of the stock is owned by institutional investors and hedge funds.

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.

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