Stitch Fix (NASDAQ:SFIX) Posts Earnings Results, Beats Expectations By $0.03 EPS

Stitch Fix (NASDAQ:SFIX) posted its quarterly earnings results on Wednesday. The company reported ($0.02) EPS for the quarter, beating the consensus estimate of ($0.05) by $0.03, FiscalAI reports. Stitch Fix had a negative return on equity of 14.38% and a negative net margin of 2.23%.The firm had revenue of $341.30 million during the quarter, compared to analysts’ expectations of $334.74 million.

Stitch Fix Trading Down 2.3%

Stitch Fix stock traded down $0.08 during midday trading on Wednesday, reaching $3.38. 5,056,250 shares of the stock traded hands, compared to its average volume of 2,200,655. The firm has a market cap of $453.60 million, a PE ratio of -21.13 and a beta of 2.30. The company has a 50-day simple moving average of $4.38 and a two-hundred day simple moving average of $4.65. Stitch Fix has a 12-month low of $2.60 and a 12-month high of $5.94.

Insider Transactions at Stitch Fix

In other news, Director Katrina Lake sold 8,835 shares of the firm’s stock in a transaction that occurred on Monday, February 2nd. The shares were sold at an average price of $5.01, for a total value of $44,263.35. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Casey O’connor sold 19,347 shares of Stitch Fix stock in a transaction that occurred on Tuesday, January 27th. The shares were sold at an average price of $5.68, for a total transaction of $109,890.96. Following the completion of the transaction, the insider owned 542,071 shares of the company’s stock, valued at $3,078,963.28. This trade represents a 3.45% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 191,048 shares of company stock valued at $1,003,739. 16.09% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Stitch Fix

Institutional investors have recently modified their holdings of the business. Vanguard Group Inc. raised its stake in shares of Stitch Fix by 3.2% in the third quarter. Vanguard Group Inc. now owns 7,682,725 shares of the company’s stock valued at $33,420,000 after acquiring an additional 240,584 shares in the last quarter. Goldman Sachs Group Inc. boosted its holdings in Stitch Fix by 73.3% in the fourth quarter. Goldman Sachs Group Inc. now owns 3,664,995 shares of the company’s stock valued at $19,241,000 after purchasing an additional 1,549,902 shares during the period. State Street Corp grew its stake in Stitch Fix by 18.6% during the 4th quarter. State Street Corp now owns 3,239,044 shares of the company’s stock worth $17,005,000 after purchasing an additional 508,588 shares in the last quarter. Arrowstreet Capital Limited Partnership increased its holdings in Stitch Fix by 302.9% during the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 2,897,171 shares of the company’s stock worth $12,603,000 after purchasing an additional 2,178,156 shares during the period. Finally, Geode Capital Management LLC increased its holdings in Stitch Fix by 10.5% during the 4th quarter. Geode Capital Management LLC now owns 2,791,632 shares of the company’s stock worth $14,659,000 after purchasing an additional 266,356 shares during the period. Institutional investors and hedge funds own 71.04% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of brokerages have issued reports on SFIX. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Stitch Fix in a research note on Thursday, January 22nd. William Blair restated a “mixed” rating on shares of Stitch Fix in a research report on Friday. Telsey Advisory Group restated a “market perform” rating and set a $6.00 price objective on shares of Stitch Fix in a research report on Wednesday, March 4th. UBS Group reduced their target price on shares of Stitch Fix from $6.00 to $4.00 and set a “neutral” rating on the stock in a research note on Tuesday, March 3rd. Finally, Zacks Research cut shares of Stitch Fix from a “strong-buy” rating to a “hold” rating in a research note on Friday, December 5th. Four investment analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company has an average rating of “Reduce” and an average price target of $5.33.

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.