Wall Street Zen Upgrades Stitch Fix (NASDAQ:SFIX) to “Buy”

Stitch Fix (NASDAQ:SFIX) was upgraded by investment analysts at Wall Street Zen from a “hold” rating to a “buy” rating in a report released on Saturday.

SFIX has been the subject of a number of other research reports. Telsey Advisory Group decreased their target price 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. UBS Group dropped their price target 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. Weiss Ratings reissued a “sell (d-)” rating on shares of Stitch Fix in a research report on Thursday, January 22nd. Finally, William Blair restated a “mixed” rating on shares of Stitch Fix in a research note on Friday, March 6th. Four analysts have rated the stock with a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Reduce” and an average price target of $5.00.

Stitch Fix Price Performance

NASDAQ SFIX opened at $3.85 on Friday. The company has a 50 day simple moving average of $3.39 and a 200-day simple moving average of $4.25. The firm has a market capitalization of $525.60 million, a price-to-earnings ratio of -29.62 and a beta of 2.33. Stitch Fix has a 52-week low of $2.87 and a 52-week high of $5.94.

Stitch Fix (NASDAQ:SFIX) last announced its quarterly earnings data on Wednesday, March 11th. The company reported ($0.02) EPS for the quarter, beating analysts’ consensus estimates of ($0.05) by $0.03. The firm had revenue of $341.30 million for the quarter, compared to the consensus estimate of $334.74 million. Stitch Fix had a negative net margin of 1.89% and a negative return on equity of 12.23%. The firm’s revenue was up 9.4% on a year-over-year basis. During the same period in the previous year, the firm posted ($0.05) earnings per share. On average, analysts predict that Stitch Fix will post -0.44 EPS for the current year.

Insiders Place Their Bets

In other news, CFO David Aufderhaar sold 65,709 shares of the stock in a transaction on Tuesday, April 7th. The shares were sold at an average price of $3.09, for a total transaction of $203,040.81. Following the transaction, the chief financial officer owned 1,178,037 shares in the company, valued at $3,640,134.33. This represents a 5.28% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Casey O’connor sold 60,000 shares of the firm’s stock in a transaction on Friday, April 10th. The shares were sold at an average price of $3.08, for a total transaction of $184,800.00. Following the transaction, the insider owned 480,334 shares in the company, valued at $1,479,428.72. This represents a 11.10% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 316,757 shares of company stock valued at $1,391,580 over the last ninety days. Corporate insiders own 16.09% of the company’s stock.

Hedge Funds Weigh In On Stitch Fix

Several institutional investors have recently bought and sold shares of the stock. Arrowstreet Capital Limited Partnership lifted its position in shares of Stitch Fix by 302.9% in the third quarter. Arrowstreet Capital Limited Partnership now owns 2,897,171 shares of the company’s stock worth $12,603,000 after buying an additional 2,178,156 shares during the last quarter. Marshall Wace LLP increased its holdings in shares of Stitch Fix by 4,898.1% during the 2nd quarter. Marshall Wace LLP now owns 2,010,034 shares of the company’s stock valued at $7,437,000 after acquiring an additional 1,969,818 shares during the last quarter. Goldman Sachs Group Inc. increased its holdings in shares of Stitch Fix by 73.3% during the 4th quarter. Goldman Sachs Group Inc. now owns 3,664,995 shares of the company’s stock valued at $19,241,000 after acquiring an additional 1,549,902 shares during the last quarter. Working Capital Advisors UK Ltd. raised its stake in shares of Stitch Fix by 15.9% in the 3rd quarter. Working Capital Advisors UK Ltd. now owns 11,046,077 shares of the company’s stock valued at $48,050,000 after acquiring an additional 1,512,475 shares in the last quarter. Finally, Archon Capital Management LLC bought a new position in shares of Stitch Fix in the 4th quarter valued at approximately $7,702,000. 71.04% of the stock is currently owned by institutional investors.

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.