Stitch Fix (NASDAQ:SFIX) Shares Up 9.3% - Should You Buy?

Shares of Stitch Fix, Inc. (NASDAQ:SFIX - Get Free Report) were up 9.3% during mid-day trading on Wednesday . The company traded as high as $5.28 and last traded at $5.27. Approximately 1,703,453 shares were traded during mid-day trading, a decline of 42% from the average daily volume of 2,912,497 shares. The stock had previously closed at $4.82.

Wall Street Analysts Forecast Growth

SFIX has been the subject of several recent research reports. Telsey Advisory Group upped their target price on shares of Stitch Fix from $4.00 to $6.00 and gave the company a "market perform" rating in a research report on Wednesday, December 11th. Canaccord Genuity Group raised their target price on Stitch Fix from $5.00 to $6.00 and gave the stock a "hold" rating in a report on Wednesday, December 11th. Finally, UBS Group upped their price target on Stitch Fix from $2.80 to $5.00 and gave the company a "neutral" rating in a research note on Wednesday, December 4th. Two research analysts have rated the stock with a sell rating and seven have given a hold rating to the company. Based on data from MarketBeat, the company has an average rating of "Hold" and an average price target of $3.96.

Stitch Fix Trading Up 9.3 %

The company has a fifty day moving average price of $4.31 and a two-hundred day moving average price of $3.86. The firm has a market cap of $668.44 million, a P/E ratio of -6.35 and a beta of 1.99.

Stitch Fix (NASDAQ:SFIX - Get Free Report) last announced its quarterly earnings results on Tuesday, December 10th. The company reported ($0.05) earnings per share for the quarter, beating analysts' consensus estimates of ($0.14) by $0.09. Stitch Fix had a negative net margin of 7.71% and a negative return on equity of 32.71%. The firm had revenue of $318.82 million for the quarter, compared to analyst estimates of $306.88 million. During the same quarter in the previous year, the firm posted ($0.30) earnings per share. The business's revenue was down 12.6% on a year-over-year basis. As a group, sell-side analysts expect that Stitch Fix, Inc. will post -0.46 EPS for the current year.

Insider Buying and Selling at Stitch Fix

In other news, insider Anthony Bacos sold 16,720 shares of the firm's stock in a transaction that occurred on Friday, December 13th. The shares were sold at an average price of $4.61, for a total transaction of $77,079.20. Following the completion of the transaction, the insider now directly owns 913,962 shares of the company's stock, valued at $4,213,364.82. This trade represents a 1.80 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Katrina Lake sold 725,002 shares of the business's stock in a transaction on Wednesday, December 11th. The stock was sold at an average price of $5.78, for a total transaction of $4,190,511.56. The disclosure for this sale can be found here. Company insiders own 16.95% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the business. Caprock Group LLC acquired a new position in shares of Stitch Fix during the 3rd quarter worth about $33,000. Wealth Enhancement Advisory Services LLC bought a new stake in Stitch Fix during the third quarter worth about $36,000. Meeder Asset Management Inc. acquired a new position in Stitch Fix during the third quarter valued at approximately $44,000. Pallas Capital Advisors LLC bought a new position in Stitch Fix in the fourth quarter valued at approximately $46,000. Finally, CWM LLC increased its position in shares of Stitch Fix by 112.1% during the 3rd quarter. CWM LLC now owns 25,175 shares of the company's stock worth $71,000 after purchasing an additional 13,308 shares during the last quarter. Institutional investors own 71.04% of the company's stock.

About Stitch Fix

Stitch Fix, Inc sells a range of apparel, shoes, and accessories for men, women, and kids through its website and mobile application in the United States and the United Kingdom. It offers denim, dresses, blouses, skirts, shoes, jewelry, and handbags under the Stitch Fix brand. The company was formerly known as rack habit inc.

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