Investors Buy High Volume of Call Options on Stitch Fix (NASDAQ:SFIX)

Stitch Fix, Inc. (NASDAQ:SFIX) saw unusually large options trading on Monday. Stock traders bought 8,537 call options on the company. This represents an increase of 219% compared to the average volume of 2,675 call options.

Wall Street Analysts Forecast Growth

A number of analysts recently weighed in on the stock. UBS Group upped their target price on shares of Stitch Fix from $2.80 to $5.00 and gave the stock a “neutral” rating in a report on Wednesday, December 4th. Canaccord Genuity Group raised their price target on Stitch Fix from $5.00 to $6.00 and gave the company a “hold” rating in a report on Wednesday, December 11th. Finally, Telsey Advisory Group reissued a “market perform” rating and issued a $6.00 price target on shares of Stitch Fix in a research note on Tuesday, March 4th. One investment analyst has rated the stock with a sell rating and five have issued a hold rating to the company. Based on data from MarketBeat.com, Stitch Fix has a consensus rating of “Hold” and an average target price of $4.50.

Stitch Fix Stock Down 5.8 %

Shares of NASDAQ SFIX traded down $0.24 during trading hours on Monday, reaching $4.00. 521,347 shares of the stock traded hands, compared to its average volume of 2,281,890. The company’s 50-day simple moving average is $4.86 and its two-hundred day simple moving average is $4.07. The company has a market capitalization of $506.84 million, a P/E ratio of -4.82 and a beta of 2.13. Stitch Fix has a 52-week low of $2.06 and a 52-week high of $6.99.

Stitch Fix (NASDAQ:SFIX) last posted its quarterly earnings results on Tuesday, December 10th. The company reported ($0.05) EPS for the quarter, topping the consensus estimate of ($0.14) by $0.09. Stitch Fix had a negative net margin of 7.71% and a negative return on equity of 32.71%. The firm had revenue of $318.82 million for the quarter, compared to the consensus estimate of $306.88 million. During the same period last year, the firm posted ($0.30) earnings per share. The business’s revenue was down 12.6% compared to the same quarter last year. As a group, sell-side analysts forecast that Stitch Fix will post -0.44 earnings per share for the current fiscal year.

Insider Transactions at Stitch Fix

In other Stitch Fix news, insider Anthony Bacos sold 16,720 shares of Stitch Fix stock in a transaction dated Friday, December 13th. The shares were sold at an average price of $4.61, for a total value of $77,079.20. Following the sale, the insider now owns 913,962 shares of the company’s stock, valued at approximately $4,213,364.82. The trade was a 1.80 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Katrina Lake sold 725,002 shares of the stock in a transaction that occurred on Wednesday, December 11th. The shares were sold at an average price of $5.78, for a total transaction of $4,190,511.56. The disclosure for this sale can be found here. Company insiders own 16.95% of the company’s stock.

Institutional Trading of Stitch Fix

Several hedge funds have recently added to or reduced their stakes in the business. Rhumbline Advisers increased its holdings in shares of Stitch Fix by 1.5% in the fourth quarter. Rhumbline Advisers now owns 149,625 shares of the company’s stock worth $645,000 after buying an additional 2,255 shares during the period. Corebridge Financial Inc. lifted its position in Stitch Fix by 4.8% in the fourth quarter. Corebridge Financial Inc. now owns 50,355 shares of the company’s stock valued at $217,000 after purchasing an additional 2,295 shares during the last quarter. Federated Hermes Inc. boosted its stake in shares of Stitch Fix by 4.1% during the fourth quarter. Federated Hermes Inc. now owns 96,504 shares of the company’s stock valued at $416,000 after purchasing an additional 3,771 shares during the period. Creative Planning grew its holdings in shares of Stitch Fix by 32.1% in the third quarter. Creative Planning now owns 25,477 shares of the company’s stock worth $72,000 after purchasing an additional 6,194 shares during the last quarter. Finally, SBI Securities Co. Ltd. purchased a new position in shares of Stitch Fix in the fourth quarter worth $29,000. 71.04% of the stock is owned by institutional investors.

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.