Stitch Fix (NASDAQ:SFIX) Stock Price Down 6.3% – Here’s Why

Stitch Fix, Inc. (NASDAQ:SFIX) shares dropped 6.3% on Friday . The stock traded as low as $3.91 and last traded at $3.9350. Approximately 708,254 shares changed hands during mid-day trading, a decline of 66% from the average daily volume of 2,063,516 shares. The stock had previously closed at $4.20.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently commented on SFIX shares. William Blair reissued a “mixed” rating on shares of Stitch Fix in a research report on Friday, March 6th. UBS Group boosted their price objective on shares of Stitch Fix from $4.00 to $4.50 and gave the stock a “neutral” rating in a research note on Thursday. Telsey Advisory Group reduced their price objective on shares of Stitch Fix from $6.00 to $5.00 and set a “market perform” rating for the company in a research note on Thursday, March 12th. Wall Street Zen cut shares of Stitch Fix from a “buy” rating to a “hold” rating in a research note on Saturday, May 2nd. Finally, Northland Securities assumed coverage on shares of Stitch Fix in a research note on Thursday, May 28th. They issued an “outperform” rating and a $5.00 price objective for the company. One analyst has rated the stock with a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, Stitch Fix presently has a consensus rating of “Hold” and an average price target of $5.13.

Stitch Fix Trading Down 9.2%

The stock has a market cap of $520.82 million, a P/E ratio of -29.27 and a beta of 2.31. The company’s fifty day simple moving average is $3.49 and its 200-day simple moving average is $4.06.

Stitch Fix (NASDAQ:SFIX) last announced its quarterly earnings results on Wednesday, June 10th. The company reported ($0.01) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.06) by $0.05. The firm had revenue of $340.28 million for the quarter, compared to analyst estimates of $333.51 million. Stitch Fix had a negative net margin of 1.43% and a negative return on equity of 9.30%. The business’s revenue for the quarter was up 4.7% on a year-over-year basis. During the same quarter in the previous year, the firm posted ($0.06) EPS. As a group, analysts expect that Stitch Fix, Inc. will post -0.19 earnings per share for the current fiscal year.

Insider Buying and Selling at Stitch Fix

In other news, insider Casey O’connor sold 60,000 shares of the company’s stock in a transaction dated Friday, April 10th. The shares were sold at an average price of $3.08, for a total value of $184,800.00. Following the sale, the insider owned 480,334 shares of the company’s stock, valued at approximately $1,479,428.72. This represents a 11.10% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO David Aufderhaar sold 65,709 shares of the company’s stock in a transaction dated Tuesday, April 7th. The stock was sold at an average price of $3.09, for a total transaction of $203,040.81. Following the completion of the sale, the chief financial officer directly owned 1,178,037 shares in the company, valued at approximately $3,640,134.33. The trade was a 5.28% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 16.09% of the company’s stock.

Institutional Investors Weigh In On Stitch Fix

Large investors have recently made changes to their positions in the company. Farther Finance Advisors LLC grew its holdings in shares of Stitch Fix by 52.1% in the 4th quarter. Farther Finance Advisors LLC now owns 9,719 shares of the company’s stock worth $51,000 after purchasing an additional 3,329 shares during the last quarter. Caerus Investment Advisors LLC bought a new stake in shares of Stitch Fix in the 1st quarter worth about $36,000. Royal Bank of Canada grew its holdings in shares of Stitch Fix by 324.6% in the 4th quarter. Royal Bank of Canada now owns 10,998 shares of the company’s stock worth $57,000 after purchasing an additional 8,408 shares during the last quarter. CIBC Bancorp USA Inc. acquired a new position in Stitch Fix during the 3rd quarter worth about $50,000. Finally, First Dallas Securities Inc. acquired a new position in Stitch Fix during the 1st quarter worth about $38,000. Institutional investors own 71.04% of the company’s stock.

About Stitch Fix

Stitch Fix, Inc, headquartered in San Francisco, California, is a leading online personal styling service that blends data science with human expertise to deliver curated clothing and accessory selections. Founded in 2011 by Katrina Lake, the company pioneered a subscription-based model in which customers receive periodic “Fixes” tailored to their personal style, size and budget. Each shipment arrives with several handpicked items along with styling notes, allowing clients to review, purchase and return pieces at their convenience.

Clients begin by completing an online style profile that captures their measurements, design preferences and lifestyle needs.