S&P 500   3,585.62
DOW   28,725.51
QQQ   267.26
Why This Bear Market Is Not Even Close to Being Done…
Market Wizard Who Accurately Predicted 2022 Market Collapse Has Shocking New Forecast (Ad)
EU chief: New Greece-Bulgaria gas pipeline 'means freedom'
Denmark says Nord Stream 1 natural gas pipeline has also stopped leaking
Market Wizard Who Accurately Predicted 2022 Market Collapse Has Shocking New Forecast (Ad)
Ruptured oil pipeline off California approved for repairs
Italy's Meloni vows to put national energy interests first
Market Wizard Who Accurately Predicted 2022 Market Collapse Has Shocking New Forecast (Ad)
Danes: Nord Stream 2 pipeline seems to have stopped leaking
Brazil holds historic election with Lula against Bolsonaro
S&P 500   3,585.62
DOW   28,725.51
QQQ   267.26
Why This Bear Market Is Not Even Close to Being Done…
Market Wizard Who Accurately Predicted 2022 Market Collapse Has Shocking New Forecast (Ad)
EU chief: New Greece-Bulgaria gas pipeline 'means freedom'
Denmark says Nord Stream 1 natural gas pipeline has also stopped leaking
Market Wizard Who Accurately Predicted 2022 Market Collapse Has Shocking New Forecast (Ad)
Ruptured oil pipeline off California approved for repairs
Italy's Meloni vows to put national energy interests first
Market Wizard Who Accurately Predicted 2022 Market Collapse Has Shocking New Forecast (Ad)
Danes: Nord Stream 2 pipeline seems to have stopped leaking
Brazil holds historic election with Lula against Bolsonaro
S&P 500   3,585.62
DOW   28,725.51
QQQ   267.26
Why This Bear Market Is Not Even Close to Being Done…
Market Wizard Who Accurately Predicted 2022 Market Collapse Has Shocking New Forecast (Ad)
EU chief: New Greece-Bulgaria gas pipeline 'means freedom'
Denmark says Nord Stream 1 natural gas pipeline has also stopped leaking
Market Wizard Who Accurately Predicted 2022 Market Collapse Has Shocking New Forecast (Ad)
Ruptured oil pipeline off California approved for repairs
Italy's Meloni vows to put national energy interests first
Market Wizard Who Accurately Predicted 2022 Market Collapse Has Shocking New Forecast (Ad)
Danes: Nord Stream 2 pipeline seems to have stopped leaking
Brazil holds historic election with Lula against Bolsonaro
S&P 500   3,585.62
DOW   28,725.51
QQQ   267.26
Why This Bear Market Is Not Even Close to Being Done…
Market Wizard Who Accurately Predicted 2022 Market Collapse Has Shocking New Forecast (Ad)
EU chief: New Greece-Bulgaria gas pipeline 'means freedom'
Denmark says Nord Stream 1 natural gas pipeline has also stopped leaking
Market Wizard Who Accurately Predicted 2022 Market Collapse Has Shocking New Forecast (Ad)
Ruptured oil pipeline off California approved for repairs
Italy's Meloni vows to put national energy interests first
Market Wizard Who Accurately Predicted 2022 Market Collapse Has Shocking New Forecast (Ad)
Danes: Nord Stream 2 pipeline seems to have stopped leaking
Brazil holds historic election with Lula against Bolsonaro

Insiders And Institutions Bet Big On Stitch Fix, Inc

Insiders And Institutions Bet Big On Stitch Fix, Inc

Stitch Fix, Inc Is Ready To Rocket Higher 

Insider and institutional activity in Stitch Fix (NASDAQ: SFIX) have been robust this year and point to a significant uptick in share prices at some point in the not-too-distant future. Insiders, specifically the largest institutional owners, have been buying the stock all year and that activity picked up noticeably in the 2nd half of the year. Total insider buying in 2021 topped 2.688 million shares for a total worth 2.46% of the shares outstanding. The buying brought total insider ownership to over 27% with some noteworthy activity among the largest holders of the stock. 

Working Capital Advisors, for one, upped its holdings by several million shares over the course of the 2nd half of the year and now holds more than 10% of the total. Others, like Vanguard and Jackson Square, also hold large positions worth mid-single digits in regards to the shares outstanding. The insider activity is echoed by the institutional activity at large. Institutional activity in shares of Stitch Fix, Inc was net-bullish all year and pushed total ownership to over 57.4%.

The Analysts Lower Their Targets For Stitch Fix but …. 

The analysts lowered their targets for Stitch Fix after the last earnings report but take that statement with a grain of salt. The Marketbeat.com consensus sentiment of 17 analysts is a firm Hold with a price target of $34.47. The $34.47 is down more than 50% from its high set in mid-2021 but still implies a healthy 78% of upside for the stock. The most recent activity included a round of price target reductions and rating downgrades but we view this as a low in sentiment due to the “wait and see” tone to the commentary. 


BMO Capital (Market Perform): "The burden of proof clearly lies on SFIX to execute as investors debate the return to top-line growth.”

The reason for the downgrades is the guidance which came in well below the analyst’s consensus estimates. The company is looking for $505 to $520 million in net revenue for FQ2 versus the $581 posted in FQ1 and the $586 million expected by the then Marketbeat.com consensus estimate. Needless to say, unless there was some significant change in business that was not disclosed, we view this guidance as incredibly cautious as there are no signs of slowing in the greater retail sphere. 

The Technical Outlook: Stitch Fix Is Setting Up For A Short-Covering Rally 

The short interest in shares of Stitch Fix grew over the last few quarters and was sitting near 17% coming into the New Year. This isn’t the highest we’ve seen recently but it is more than high enough to sustain a short-covering rally or even fuel a short-squeeze should the company outperform the consensus as we expect it to do. 

Looking at the chart, the short-interest has price action down to the lowest levels since the COVID-19 bottom in March of 2020 and overextending to the downside. The indicators are both diverging from the lows in evidence of underlying market weakness and the potential for bottoming and reversal. Price action may move down to retest the low at $14.55 but, if it does, we would expect to see bottom seekers and bargain hunters start scooping up shares. Longer-term, assuming the company outperforms as we expect, price action should begin bottoming in the first half of the year and begin moving higher by the second. 

Insiders And Institutions Bet Big On Stitch Fix, Inc

Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
Stitch Fix (SFIX)
2.3489 of 5 stars
$3.95+1.8%N/A-2.07Hold$7.86
Compare These Stocks  Add These Stocks to My Watchlist 

Should you invest $1,000 in Stitch Fix right now?

Before you consider Stitch Fix, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Stitch Fix wasn't on the list.

While Stitch Fix currently has a "Hold" rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

Thomas Hughes

About Thomas Hughes

Contributing Author: Technical and Fundamental Analysis

Thomas got his start with the markets while working as a Chef. In 2005 a chance invitation to attend the seminar “How To Buy And Sell Your Own Stocks” altered his worldview. Soon trading and stocks consumed his every waking moment to the point of excluding all else. Thomas now enjoys a much different lifestyle engaged in his true passion, uncovering great investments.
Contact Thomas Hughes via email at tmhughes.writeon@gmail.com.
Free Email Newsletter

Complete the form below to receive the latest headlines and analysts' recommendations for your stocks with our free daily email newsletter:

Most Read This Week

Recent Articles

Search Headlines:

Latest PodcastFed Raises Rates: 3 Stocks to Watch Newmont Mining, Walmart, AMC

Axel Merk, President and CIO of Merk Investments has three very different stocks he frames within the current market and economic conditions.

MarketBeat Resources

Premium Research Tools

MarketBeat All Access subscribers can access stock screeners, the Idea Engine, data export tools, research reports, and other premium tools.

Discover All Access

Market Data and Calendars

Looking for new stock ideas? Want to see which stocks are moving? View our full suite of financial calendars and market data tables, all for free.

View Market Data

Investing Education and Resources

Receive a free world-class investing education from MarketBeat. Learn about financial terms, types of investments, trading strategies and more.

Financial Terms
Details Here
MarketBeat - Stock Market News and Research Tools logo

MarketBeat empowers individual investors to make better trading decisions by providing real-time financial data and objective market analysis. Whether you’re looking for analyst ratings, corporate buybacks, dividends, earnings, economic reports, financials, insider trades, IPOs, SEC filings or stock splits, MarketBeat has the objective information you need to analyze any stock. Learn more about MarketBeat.

MarketBeat is accredited by the Better Business Bureau MarketBeat is rated as Great on TrustPilot

© American Consumer News, LLC dba MarketBeat® 2010-2022. All rights reserved.
326 E 8th St #105, Sioux Falls, SD 57103 | contact@marketbeat.com | (844) 978-6257
MarketBeat does not provide personalized financial advice and does not issue recommendations or offers to buy stock or sell any security.

Our Accessibility Statement | Terms of Service | Privacy Policy | Do Not Sell My Information | RSS Feeds

© 2022 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see Barchart's disclaimer.