Stitch Fix (NASDAQ:SFIX) Trading 5.8% Higher – Here’s Why

Shares of Stitch Fix, Inc. (NASDAQ:SFIX) shot up 5.8% during mid-day trading on Friday . The stock traded as high as $5.12 and last traded at $5.06. 779,518 shares traded hands during trading, a decline of 67% from the average session volume of 2,371,302 shares. The stock had previously closed at $4.78.

Analysts Set New Price Targets

Several research firms have weighed in on SFIX. Telsey Advisory Group boosted their target price on shares of Stitch Fix from $4.00 to $6.00 and gave the company a “market perform” rating in a research note on Wednesday, December 11th. Canaccord Genuity Group raised their target price on shares of Stitch Fix from $5.00 to $6.00 and gave the stock a “hold” rating in a report on Wednesday, December 11th. Finally, UBS Group upped their target price on Stitch Fix from $2.80 to $5.00 and gave the company a “neutral” rating in a report on Wednesday, December 4th. Two investment analysts have rated the stock with a sell rating and seven have issued a hold rating to the stock. According to MarketBeat.com, Stitch Fix currently has a consensus rating of “Hold” and an average target price of $3.96.

Stitch Fix Stock Performance

The business has a fifty day moving average of $4.60 and a 200-day moving average of $3.93. The firm has a market capitalization of $624.04 million, a P/E ratio of -5.93 and a beta of 1.99.

Stitch Fix (NASDAQ:SFIX) last posted its quarterly earnings data on Tuesday, December 10th. The company reported ($0.05) earnings per share 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 business had revenue of $318.82 million during the quarter, compared to the consensus estimate of $306.88 million. During the same quarter in the prior year, the company posted ($0.30) earnings per share. The company’s quarterly revenue was down 12.6% compared to the same quarter last year. On average, equities research analysts forecast that Stitch Fix, Inc. will post -0.44 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, insider Anthony Bacos sold 16,720 shares of the firm’s stock in a transaction that occurred on Friday, December 13th. The shares were sold at an average price of $4.61, for a total transaction of $77,079.20. Following the completion of the sale, the insider now directly owns 913,962 shares in the company, valued at approximately $4,213,364.82. This trade represents a 1.80 % decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director Katrina Lake sold 725,002 shares of the company’s stock in a transaction on Wednesday, December 11th. The shares were sold at an average price of $5.78, for a total value of $4,190,511.56. The disclosure for this sale can be found here. 16.95% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Stitch Fix

A number of hedge funds have recently modified their holdings of SFIX. Disciplined Growth Investors Inc. MN raised its holdings in Stitch Fix by 48.1% during the 3rd quarter. Disciplined Growth Investors Inc. MN now owns 13,734,485 shares of the company’s stock worth $38,731,000 after buying an additional 4,460,668 shares during the period. Hodges Capital Management Inc. raised its stake in Stitch Fix by 34.4% during the 3rd quarter. Hodges Capital Management Inc. now owns 3,375,200 shares of the company’s stock valued at $9,518,000 after purchasing an additional 864,100 shares during the period. Geode Capital Management LLC lifted its holdings in shares of Stitch Fix by 3.8% in the third quarter. Geode Capital Management LLC now owns 2,294,925 shares of the company’s stock valued at $6,473,000 after purchasing an additional 83,220 shares in the last quarter. Jacobs Levy Equity Management Inc. purchased a new stake in shares of Stitch Fix in the third quarter valued at $2,862,000. Finally, Connor Clark & Lunn Investment Management Ltd. boosted its position in shares of Stitch Fix by 32.0% in the third quarter. Connor Clark & Lunn Investment Management Ltd. now owns 499,142 shares of the company’s stock worth $1,408,000 after buying an additional 121,084 shares during the period. 71.04% of the stock is currently 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.