Stitch Fix (NASDAQ:SFIX) Shares Gap Down – Here’s Why

Stitch Fix, Inc. (NASDAQ:SFIX)’s share price gapped down prior to trading on Friday . The stock had previously closed at $4.93, but opened at $4.72. Stitch Fix shares last traded at $4.50, with a volume of 395,278 shares changing hands.

Analysts Set New Price Targets

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

Stitch Fix Trading Down 10.5 %

The stock has a market cap of $559.36 million, a P/E ratio of -5.31 and a beta of 1.99. The business’s 50 day moving average price is $4.22 and its two-hundred day moving average price is $3.84.

Stitch Fix (NASDAQ:SFIX) last announced its earnings results on Tuesday, December 10th. The company reported ($0.05) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.14) by $0.09. The firm had revenue of $318.82 million during the quarter, compared to analyst estimates of $306.88 million. Stitch Fix had a negative return on equity of 32.71% and a negative net margin of 7.71%. The business’s revenue was down 12.6% compared to the same quarter last year. During the same quarter in the prior year, the company earned ($0.30) EPS. As a group, analysts expect that Stitch Fix, Inc. will post -0.46 earnings per share for the current year.

Insider Transactions at Stitch Fix

In other news, insider Anthony Bacos sold 16,720 shares of Stitch Fix stock in a transaction dated Friday, December 13th. The stock was sold at an average price of $4.61, for a total value of $77,079.20. Following the completion of the transaction, the insider now owns 913,962 shares of the company’s stock, valued at $4,213,364.82. The trade was a 1.80 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Katrina Lake sold 725,002 shares of the stock in a transaction dated 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. Insiders own 16.95% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of SFIX. Disciplined Growth Investors Inc. MN increased its holdings in Stitch Fix by 48.1% in 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 in the last quarter. Jacobs Levy Equity Management Inc. purchased a new position in shares of Stitch Fix during the third quarter valued at approximately $2,862,000. Hodges Capital Management Inc. lifted its position in Stitch Fix by 34.4% during the third 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. Renaissance Technologies LLC boosted its holdings in Stitch Fix by 11.7% in the second quarter. Renaissance Technologies LLC now owns 4,432,600 shares of the company’s stock worth $18,395,000 after purchasing an additional 465,900 shares during the last quarter. Finally, Public Employees Retirement System of Ohio grew its position in Stitch Fix by 2,253.6% in the 3rd quarter. Public Employees Retirement System of Ohio now owns 146,750 shares of the company’s stock worth $414,000 after purchasing an additional 140,515 shares during the period. Hedge funds and other 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.