Stitch Fix (NASDAQ:SFIX) Stock Price Down 4.9% – Should You Sell?

Stitch Fix, Inc. (NASDAQ:SFIX) was down 4.9% on Tuesday . The company traded as low as $3.82 and last traded at $3.7750. Approximately 185,739 shares traded hands during trading, a decline of 91% from the average session volume of 2,029,506 shares. The stock had previously closed at $3.97.

Wall Street Analyst Weigh In

SFIX has been the subject of a number of recent research reports. Northland Securities assumed coverage on Stitch Fix in a research note on Thursday, May 28th. They issued an “outperform” rating and a $5.00 target price for the company. UBS Group raised their price objective on shares of Stitch Fix from $4.00 to $4.50 and gave the stock a “neutral” rating in a research report on Thursday, June 11th. Weiss Ratings raised shares of Stitch Fix from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Monday, July 13th. Finally, Wall Street Zen cut shares of Stitch Fix from a “buy” rating to a “hold” rating in a research note on Saturday, May 2nd. One research analyst has rated the stock with a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus price target of $5.12.

Stitch Fix Stock Performance

The stock’s 50-day moving average is $3.92 and its two-hundred day moving average is $3.75. The stock has a market cap of $507.70 million, a PE ratio of -47.56 and a beta of 2.26.

Stitch Fix (NASDAQ:SFIX) last released its quarterly earnings results on Wednesday, June 10th. The company reported ($0.01) EPS for the quarter, topping analysts’ consensus estimates of ($0.06) by $0.05. Stitch Fix had a negative return on equity of 9.35% and a negative net margin of 1.43%.The company had revenue of $340.28 million for the quarter, compared to analysts’ expectations of $333.51 million. During the same period in the prior year, the firm earned ($0.06) earnings per share. The firm’s revenue was up 4.7% compared to the same quarter last year. Analysts forecast that Stitch Fix, Inc. will post -0.14 EPS for the current year.

Insider Activity

In other news, CFO David Aufderhaar sold 67,960 shares of the firm’s stock in a transaction that occurred on Monday, July 6th. The shares were 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 owned 1,102,369 shares of the company’s stock, valued at approximately $4,177,978.51. This trade represents a 5.81% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Anthony Bacos sold 100,000 shares of Stitch Fix stock in a transaction that occurred on Wednesday, June 24th. The shares were sold at an average price of $4.51, for a total transaction of $451,000.00. Following the completion of the transaction, the insider owned 1,071,994 shares of the company’s stock, valued at $4,834,692.94. This trade represents a 8.53% 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. In the last three months, insiders have sold 727,971 shares of company stock worth $2,924,817. 16.09% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Stitch Fix

Several institutional investors have recently modified their holdings of the business. Landscape Capital Management L.L.C. boosted its holdings in Stitch Fix by 49.0% in the fourth quarter. Landscape Capital Management L.L.C. now owns 1,230,124 shares of the company’s stock valued at $6,458,000 after purchasing an additional 404,322 shares during the period. Dimensional Fund Advisors LP increased its holdings in Stitch Fix by 6.3% during the 1st quarter. Dimensional Fund Advisors LP now owns 2,418,196 shares of the company’s stock worth $8,004,000 after purchasing an additional 142,909 shares during the period. Caerus Investment Advisors LLC acquired a new stake in Stitch Fix in the 1st quarter valued at about $36,000. Chicago Partners Investment Group LLC purchased a new position in shares of Stitch Fix in the 1st quarter valued at about $47,000. Finally, First Dallas Securities Inc. purchased a new stake in shares of Stitch Fix during the first quarter worth approximately $38,000. Institutional investors and hedge funds own 71.04% of the company’s stock.

Stitch Fix Company Profile

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.