Stitch Fix (NASDAQ:SFIX) Stock Price Down 4.9% - Here's Why

Key Points

• Stitch Fix shares fell 4.9% to about $3.78, with trading volume down 91% versus the average daily volume.
• Analyst sentiment remains cautious: the stock carries an overall “Hold” rating, with an average price target of $5.12, despite Northland Securities’ “outperform” rating and $5.00 target.
• Recent results beat estimates, with quarterly revenue rising 4.7% year over year, but the company remains unprofitable; insiders also sold 727,971 shares worth approximately $2.9 million over the past 90 days.

Stitch Fix, Inc. (NASDAQ:SFIX - Get Free Report) shares dropped 4.9% on Tuesday . The company traded as low as $3.82 and last traded at $3.7750. Approximately 185,739 shares traded hands during trading, a decline of 91% from the average daily volume of 2,029,506 shares. The stock had previously closed at $3.97.

Analyst Ratings Changes

SFIX has been the subject of a number of research analyst reports. Wall Street Zen lowered Stitch Fix from a "buy" rating to a "hold" rating in a research note on Saturday, May 2nd. UBS Group increased their price objective on Stitch Fix from $4.00 to $4.50 and gave the company a "neutral" rating in a report on Thursday, June 11th. Weiss Ratings upgraded Stitch Fix from a "sell (e+)" rating to a "sell (d-)" rating in a research note on Monday, July 13th. Finally, Northland Securities initiated coverage on Stitch Fix in a report on Thursday, May 28th. They set an "outperform" rating and a $5.00 target price for the company. One investment analyst has rated the stock with a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, Stitch Fix has an average rating of "Hold" and an average price target of $5.12.

Stitch Fix Price Performance

The stock has a fifty day simple moving average of $3.92 and a 200-day simple moving average of $3.75. The company has a market capitalization of $507.70 million, a price-to-earnings ratio of -47.56 and a beta of 2.26.

Stitch Fix (NASDAQ:SFIX - Get Free Report) last posted its earnings results on Wednesday, June 10th. The company reported ($0.01) earnings per share for the quarter, beating the consensus estimate of ($0.06) by $0.05. The firm had revenue of $340.28 million during the quarter, compared to analyst estimates of $333.51 million. Stitch Fix had a negative net margin of 1.43% and a negative return on equity of 9.35%. The business's quarterly revenue was up 4.7% on a year-over-year basis. During the same period in the previous year, the firm earned ($0.06) EPS. As a group, equities analysts expect that Stitch Fix, Inc. will post -0.14 EPS for the current fiscal year.

Insider Buying and Selling

In other Stitch Fix news, CFO David Aufderhaar sold 67,960 shares of the company's stock in a transaction on Monday, July 6th. The shares were sold at an average price of $3.79, for a total transaction of $257,568.40. Following the completion of the transaction, the chief financial officer directly owned 1,102,369 shares in the company, valued at approximately $4,177,978.51. This represents a 5.81% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Anthony Bacos sold 70,000 shares of the stock in a transaction on Monday, August 3rd. The shares were sold at an average price of $4.09, for a total transaction of $286,300.00. Following the transaction, the insider directly owned 951,994 shares in the company, valued at approximately $3,893,655.46. The trade was a 6.85% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 727,971 shares of company stock valued at $2,924,817 over the last 90 days. Company insiders own 16.09% of the company's stock.

Institutional Investors Weigh In On Stitch Fix

Large investors have recently bought and sold shares of the company. Caerus Investment Advisors LLC acquired a new stake in shares of Stitch Fix in the first quarter worth approximately $36,000. First Dallas Securities Inc. purchased a new stake in shares of Stitch Fix during the first quarter worth $38,000. Krilogy Financial LLC acquired a new stake in shares of Stitch Fix in the first quarter valued at about $46,000. Creative Planning purchased a new position in shares of Stitch Fix in the second quarter worth about $46,000. Finally, Chicago Partners Investment Group LLC purchased a new position in shares of Stitch Fix in the first quarter worth about $47,000. 71.04% of the stock is currently owned by hedge funds and other institutional investors.

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.

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