Stitch Fix (NASDAQ:SFIX) Shares Gap Up - Still a Buy?

Stitch Fix, Inc. (NASDAQ:SFIX - Get Free Report)'s share price gapped up prior to trading on Monday . The stock had previously closed at $3.94, but opened at $4.25. Stitch Fix shares last traded at $4.33, with a volume of 1,106,367 shares trading hands.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently issued reports on the company. Wall Street Zen downgraded Stitch Fix from a "buy" rating to a "hold" rating in a research report on Sunday, June 22nd. Telsey Advisory Group reissued a "market perform" rating and issued a $6.00 price objective on shares of Stitch Fix in a research note 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. Four investment analysts have rated the stock with a hold rating and one has assigned a buy rating to the stock. According to data from MarketBeat, the company has an average rating of "Hold" and an average price target of $5.67.

Stitch Fix Stock Performance

The stock has a 50-day moving average of $4.08 and a two-hundred day moving average of $4.13. The company has a market cap of $559.80 million, a P/E ratio of -9.33 and a beta of 1.93.

Stitch Fix (NASDAQ:SFIX - Get Free Report) last released its quarterly earnings results on Wednesday, June 11th. The company reported ($0.06) earnings per share (EPS) 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 revenue for the quarter was up .7% on a year-over-year basis. During the same period in the prior year, the company posted ($0.18) EPS. Research analysts predict that Stitch Fix, Inc. will post -0.44 EPS for the current year.

Insider Activity

In related news, major shareholder Working Capital Advisors (Uk) sold 1,370,931 shares of the business's stock in a transaction that occurred on Tuesday, June 10th. The stock was sold at an average price of $4.68, for a total value of $6,415,957.08. Following the completion of the sale, the insider owned 10,608,822 shares in the company, valued at approximately $49,649,286.96. The trade was a 11.44% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. 16.95% of the stock is owned by company insiders.

Hedge Funds Weigh In On Stitch Fix

Several hedge funds have recently made changes to their positions in the company. Bank of New York Mellon Corp lifted its stake in Stitch Fix by 7.5% in the 4th quarter. Bank of New York Mellon Corp now owns 258,299 shares of the company's stock worth $1,113,000 after purchasing an additional 17,943 shares in the last quarter. Raymond James Financial Inc. purchased a new position in Stitch Fix in the 4th quarter worth approximately $134,000. Connor Clark & Lunn Investment Management Ltd. lifted its stake in Stitch Fix by 46.8% in the 4th quarter. Connor Clark & Lunn Investment Management Ltd. now owns 732,990 shares of the company's stock worth $3,159,000 after purchasing an additional 233,848 shares in the last quarter. Counterpoint Mutual Funds LLC purchased a new position in Stitch Fix in the 4th quarter worth approximately $365,000. Finally, American Century Companies Inc. lifted its stake in Stitch Fix by 16.5% in the 4th quarter. American Century Companies Inc. now owns 187,022 shares of the company's stock worth $806,000 after purchasing an additional 26,492 shares in the last quarter. 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.