Stitch Fix (NASDAQ:SFIX) Shares Gap Down - Time to Sell?

Key Points

• Stitch Fix shares gapped down, opening at $4.78 after a previous close of $5.64, and last traded at $5.02 with significant trading volume of over 1.4 million shares.
• Several analysts have downgraded Stitch Fix's rating to "hold," with a consensus price target of $6.00, while the company reported a revenue decrease of 2.6% year-over-year despite beating earnings estimates.
• Insiders have recently sold a total of over 1 million shares, indicating potential concerns regarding stock performance, while institutional investors have increased their holdings significantly in the past quarter.

Shares of Stitch Fix, Inc. (NASDAQ:SFIX - Get Free Report) gapped down before the market opened on Thursday . The stock had previously closed at $5.64, but opened at $4.78. Stitch Fix shares last traded at $5.02, with a volume of 1,433,931 shares.

Analysts Set New Price Targets

Several research analysts recently weighed in on the company. Wall Street Zen lowered Stitch Fix from a "buy" rating to a "hold" rating in a research report on Sunday, June 22nd. Zacks Research raised Stitch Fix to a "hold" rating in a research report on Monday, August 11th. Telsey Advisory Group restated a "market perform" rating and set a $6.00 target price on shares of Stitch Fix in a research note on Thursday. UBS Group reiterated a "neutral" rating on shares of Stitch Fix in a research note on Wednesday, September 17th. Finally, Sanford C. Bernstein reiterated a "market perform" rating on shares of Stitch Fix in a research note on Thursday. One research analyst has rated the stock with a Buy rating and five have given a Hold rating to the company. According to data from MarketBeat, the company has an average rating of "Hold" and a consensus price target of $6.00.

Stitch Fix Stock Down 16.9%

The firm has a market capitalization of $611.33 million, a price-to-earnings ratio of -10.13 and a beta of 2.03. The stock's 50 day moving average price is $5.17 and its two-hundred day moving average price is $4.24.

Stitch Fix (NASDAQ:SFIX - Get Free Report) last released its earnings results on Wednesday, September 24th. The company reported ($0.07) earnings per share for the quarter, beating the consensus estimate of ($0.10) by $0.03. Stitch Fix had a negative net margin of 4.44% and a negative return on equity of 18.15%. The business had revenue of $311.23 million during the quarter, compared to analysts' expectations of $307.15 million. During the same quarter last year, the company earned ($0.30) earnings per share. The firm's revenue was down 2.6% on a year-over-year basis. Stitch Fix has set its Q1 2026 guidance at EPS. FY 2026 guidance at EPS. On average, equities analysts expect that Stitch Fix, Inc. will post -0.44 EPS for the current fiscal year.

Insider Activity at Stitch Fix

In other Stitch Fix news, insider Anthony Bacos sold 90,000 shares of Stitch Fix stock in a transaction on Friday, September 19th. The shares were sold at an average price of $5.61, for a total value of $504,900.00. Following the sale, the insider directly owned 799,966 shares in the company, valued at approximately $4,487,809.26. The trade was a 10.11% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, CFO David Aufderhaar sold 20,538 shares of Stitch Fix 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 sale, the chief financial officer owned 937,338 shares in the company, valued at $4,780,423.80. The trade was a 2.14% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 1,047,536 shares of company stock valued at $5,350,202. Insiders own 16.95% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the company. Fund 1 Investments LLC increased its stake in shares of Stitch Fix by 44.6% during the 2nd quarter. Fund 1 Investments LLC now owns 9,943,821 shares of the company's stock worth $36,792,000 after purchasing an additional 3,064,901 shares during the last quarter. Vanguard Group Inc. increased its stake in shares of Stitch Fix by 7.9% during the 1st quarter. Vanguard Group Inc. now owns 6,982,536 shares of the company's stock worth $22,693,000 after purchasing an additional 513,422 shares during the last quarter. Jacobs Levy Equity Management Inc. increased its stake in shares of Stitch Fix by 6.9% during the 1st quarter. Jacobs Levy Equity Management Inc. now owns 2,635,207 shares of the company's stock worth $8,564,000 after purchasing an additional 170,344 shares during the last quarter. Geode Capital Management LLC increased its stake in shares of Stitch Fix by 7.2% during the 2nd quarter. Geode Capital Management LLC now owns 2,609,599 shares of the company's stock worth $9,657,000 after purchasing an additional 174,426 shares during the last quarter. Finally, Marshall Wace LLP boosted its holdings in shares of Stitch Fix by 4,898.1% during the 2nd quarter. Marshall Wace LLP now owns 2,010,034 shares of the company's stock worth $7,437,000 after buying an additional 1,969,818 shares during the period. 71.04% of the stock is currently owned by institutional investors and hedge funds.

Stitch Fix Company Profile

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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