Stitch Fix (NASDAQ:SFIX) Shares Up 5.4% - Here's What Happened

Key Points

• Stitch Fix's stock price rose by 5.4% during mid-day trading, reaching $5.33, but the trading volume was 74% lower than the average.
• Analysts have mixed reviews on Stitch Fix, with Telsey Advisory Group maintaining a "market perform" rating and a $6.00 target price, while other firms have issued ratings ranging from buy to hold.
• Stitch Fix reported a quarterly earnings per share (EPS) of ($0.06), surpassing estimates, but continues to face challenges with a negative net margin of 4.44% and a negative return on equity of 18.15%.

Stitch Fix, Inc. (NASDAQ:SFIX - Get Free Report) shares rose 5.4% during mid-day trading on Monday . The company traded as high as $5.26 and last traded at $5.33. Approximately 570,958 shares changed hands during mid-day trading, a decline of 74% from the average daily volume of 2,220,188 shares. The stock had previously closed at $5.05.

Analysts Set New Price Targets

SFIX has been the topic of a number of research analyst reports. Wall Street Zen lowered Stitch Fix from a "buy" rating to a "hold" rating in a report on Sunday, June 22nd. William Blair raised Stitch Fix from a "market perform" rating to an "outperform" rating in a report on Monday, July 14th. Finally, Telsey Advisory Group restated a "market perform" rating and set a $6.00 price target on shares of Stitch Fix in a research report on Wednesday, June 11th. Four equities research analysts have rated the stock with a hold rating and one has assigned a buy rating to the stock. Based on data from MarketBeat.com, Stitch Fix currently has a consensus rating of "Hold" and an average price target of $5.67.

Stitch Fix Stock Performance

The firm's 50-day simple moving average is $4.31 and its 200 day simple moving average is $4.16. The company has a market cap of $582.62 million, a P/E ratio of -9.68 and a beta of 1.93.

Stitch Fix (NASDAQ:SFIX - Get Free Report) last announced its quarterly earnings results on Wednesday, June 11th. The company reported ($0.06) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.11) by $0.05. Stitch Fix had a negative net margin of 4.44% and a negative return on equity of 18.15%. The firm's revenue for the quarter was up .7% compared to the same quarter last year. During the same period last year, the business posted ($0.18) earnings per share. As a group, research analysts forecast that Stitch Fix, Inc. will post -0.44 earnings per share for the current year.

Insider Transactions at Stitch Fix

In other news, major shareholder Working Capital Advisors (Uk) sold 1,370,931 shares of the firm's stock in a transaction dated Tuesday, June 10th. The shares were sold at an average price of $4.68, for a total transaction 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. This trade represents a 11.44% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, insider Anthony Bacos sold 90,000 shares of Stitch Fix stock in a transaction dated Tuesday, July 22nd. The stock was sold at an average price of $5.00, for a total transaction of $450,000.00. Following the completion of the sale, the insider owned 829,966 shares of the company's stock, valued at $4,149,830. This trade represents a 9.78% decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders sold 2,177,317 shares of company stock worth $10,500,975. 16.95% of the stock is owned by insiders.

Institutional Trading of Stitch Fix

A number of institutional investors have recently bought and sold shares of the business. Focus Partners Wealth bought a new stake in shares of Stitch Fix during the 4th quarter valued at approximately $1,183,000. Geode Capital Management LLC lifted its holdings in shares of Stitch Fix by 7.2% in the 4th quarter. Geode Capital Management LLC now owns 2,459,014 shares of the company's stock worth $10,601,000 after purchasing an additional 164,089 shares in the last quarter. Susquehanna Fundamental Investments LLC bought a new position in shares of Stitch Fix in the 4th quarter worth $661,000. Point72 Asset Management L.P. purchased a new stake in Stitch Fix in the 4th quarter valued at $353,000. Finally, Nuveen Asset Management LLC raised its position in Stitch Fix by 14.8% in the 4th quarter. Nuveen Asset Management LLC now owns 1,985,413 shares of the company's stock valued at $8,557,000 after buying an additional 255,508 shares during the last quarter. Institutional investors own 71.04% of the company's stock.

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.