Telsey Advisory Group Cuts Stitch Fix (NASDAQ:SFIX) Price Target to $3.00

Stitch Fix (NASDAQ:SFIX) had its target price decreased by stock analysts at Telsey Advisory Group from $5.00 to $3.00 in a note issued to investors on Thursday, Briefing.com reports. The brokerage presently has a “market perform” rating on the stock. Telsey Advisory Group’s price target would indicate a potential upside of 6.38% from the company’s current price.

Other research analysts also recently issued reports about the stock. Northland Securities initiated coverage on shares of Stitch Fix in a research note on Thursday, May 28th. They set an “outperform” rating and a $5.00 price target on the stock. UBS Group cut their price objective on shares of Stitch Fix from $4.50 to $4.00 and set a “neutral” rating for the company in a research note on Wednesday, September 2nd. Finally, Weiss Ratings raised shares of Stitch Fix from a “sell (e+)” rating to a “sell (d-)” rating in a report on Monday, July 13th. One investment analyst has rated the stock with a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of “Hold” and an average target price of $4.50.

Stitch Fix Trading Down 5.7%

SFIX opened at $2.82 on Thursday. The stock has a market capitalization of $376.26 million, a P/E ratio of -35.25 and a beta of 2.27. The stock has a 50-day moving average price of $3.44 and a 200-day moving average price of $3.53. Stitch Fix has a 12-month low of $2.76 and a 12-month high of $5.74.

Stitch Fix (NASDAQ:SFIX) last announced its quarterly earnings data on Wednesday, September 23rd. The company reported ($0.02) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.06) by $0.04. The company had revenue of $324.42 million for the quarter, compared to analysts’ expectations of $325.50 million. Stitch Fix had a negative return on equity of 9.35% and a negative net margin of 1.43%.Stitch Fix’s revenue for the quarter was up 4.2% compared to the same quarter last year. During the same period last year, the firm posted ($0.07) EPS. On average, equities research analysts predict that Stitch Fix will post -0.14 EPS for the current year.

Insider Activity

In related news, insider Anthony Bacos sold 70,000 shares of the firm’s stock in a transaction that occurred on Monday, August 3rd. The stock was sold at an average price of $4.09, for a total transaction of $286,300.00. Following the transaction, the insider directly owned 951,994 shares in the company, valued at $3,893,655.46. This trade represents a 6.85% decrease in their position. The transaction was disclosed in a legal filing 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 67,960 shares of Stitch Fix stock in a transaction that occurred on Monday, July 6th. The stock was sold at an average price of $3.79, for a total value of $257,568.40. Following the completion of the transaction, the chief financial officer directly owned 1,102,369 shares in the company, valued at $4,177,978.51. This trade represents a 5.81% decrease in their ownership of the stock. 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 have sold a total of 487,971 shares of company stock valued at $1,900,517 over the last 90 days. 16.09% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in SFIX. State Street Corp increased its position in shares of Stitch Fix by 10.1% in the second quarter. State Street Corp now owns 3,503,504 shares of the company’s stock valued at $14,399,000 after acquiring an additional 322,030 shares during the period. WINTON GROUP Ltd purchased a new stake in shares of Stitch Fix during the second quarter worth about $263,000. Allworth Financial LP boosted its holdings in shares of Stitch Fix by 44.4% during the second quarter. Allworth Financial LP now owns 12,793 shares of the company’s stock worth $53,000 after purchasing an additional 3,932 shares during the period. Corient Private Wealth LP bought a new stake in shares of Stitch Fix in the second quarter worth about $154,000. Finally, HB Wealth Management LLC bought a new stake in shares of Stitch Fix in the second quarter worth about $45,000. 71.04% of the stock is owned by hedge funds and other institutional investors.

Stitch Fix News Roundup

Here are the key news stories impacting Stitch Fix this week:

• Positive Sentiment: Adjusted loss beat expectations: Stitch Fix reported a fourth-quarter loss of approximately $0.02 per share, better than the $0.06 loss analysts expected and improved from a $0.07 loss a year earlier. Stitch Fix Q4 earnings and guidance
• Positive Sentiment: Revenue continued to grow: Fourth-quarter revenue rose 4.2% year over year to $324.4 million, while the company said its loss narrowed, reflecting progress in its restructuring and operating improvements. Revenue was only modestly below the $325.5 million consensus estimate. Stitch Fix fiscal 2026 results
• Positive Sentiment: AI tools are encouraging spending: CEO Matt Baer said customers using Stitch Fix’s AI-generated virtual try-on feature are producing a “significant lift” in spending, offering a potential growth driver as the company improves its digital shopping experience. Stitch Fix AI try-ons and shopper spending
• Neutral Sentiment: Management described fiscal 2026 as transformative: The company highlighted a stronger operating foundation, a redesigned client experience and a more compelling product assortment, but investors will look for evidence that these initiatives can accelerate growth.
• Negative Sentiment: Fiscal 2027 guidance fell short: Stitch Fix forecast first-quarter revenue of $323 million to $328 million, well below the $355.5 million analyst consensus. Full-year fiscal 2027 revenue guidance of $1.3 billion to $1.4 billion also implied limited growth and was below the roughly $1.4 billion consensus expectation. Stitch Fix outlook and revenue guidance
• Negative Sentiment: Consumer spending remains pressured: Management cited soft consumer demand as a factor weighing on the fiscal 2027 outlook. The company remains unprofitable, with a negative net margin and analysts expecting another full-year loss, increasing the importance of stronger sales execution.

About Stitch Fix

Stitch Fix, Inc is an online personal styling company that uses data science, personalization technology and human stylists to recommend apparel and accessories to customers. Its offerings include clothing, shoes and accessories across categories such as women’s, men’s and children’s apparel, with selections tailored to individual preferences, sizes, budgets and lifestyles.

The company’s primary service, traditionally known as a “Fix,” delivers a curated selection of items for customers to try at home, after which they can purchase the items they want and return the rest.