Stitch Fix (NASDAQ:SFIX) Shares Gap Up After Earnings Beat

Stitch Fix, Inc. (NASDAQ:SFIX) shares gapped up prior to trading on Wednesday following a stronger than expected earnings report. The stock had previously closed at $4.23, but opened at $4.87. Stitch Fix shares last traded at $4.03, with a volume of 2,337,316 shares.

The company reported ($0.05) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.11) by $0.06. Stitch Fix had a negative return on equity of 32.71% and a negative net margin of 7.71%. The business had revenue of $312.11 million during the quarter, compared to analyst estimates of $298.04 million. During the same period in the prior year, the company posted ($0.29) EPS. The business’s revenue for the quarter was down 5.5% compared to the same quarter last year.

Wall Street Analysts Forecast Growth

A number of equities analysts have issued reports on the company. Canaccord Genuity Group increased their price target on Stitch Fix from $5.00 to $6.00 and gave the company a “hold” rating in a research note on Wednesday, December 11th. UBS Group increased 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. Finally, Telsey Advisory Group reaffirmed a “market perform” rating and set a $6.00 price target on shares of Stitch Fix in a research note on Wednesday. One research analyst has rated the stock with a sell rating and five have assigned a hold rating to the stock. According to MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus target price of $4.50.

Insider Activity

In other news, insider Anthony Bacos sold 16,720 shares of the stock in a transaction on Friday, December 13th. The stock was sold at an average price of $4.61, for a total value of $77,079.20. Following the completion of the sale, the insider now owns 913,962 shares in the company, valued at $4,213,364.82. This represents a 1.80 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Corporate insiders own 16.95% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in SFIX. SBI Securities Co. Ltd. bought a new stake in shares of Stitch Fix in the 4th quarter worth approximately $29,000. Caprock Group LLC acquired a new stake in Stitch Fix during the 3rd quarter valued at $33,000. Wealth Enhancement Advisory Services LLC acquired a new stake in Stitch Fix during the 3rd quarter valued at $36,000. Meeder Asset Management Inc. acquired a new stake in Stitch Fix during the 3rd quarter valued at $44,000. Finally, Pallas Capital Advisors LLC acquired a new stake in Stitch Fix during the 4th quarter valued at $46,000. Institutional investors and hedge funds own 71.04% of the company’s stock.

Stitch Fix Trading Down 8.2 %

The company has a 50 day moving average price of $4.86 and a 200 day moving average price of $4.08. The company has a market capitalization of $492.77 million, a price-to-earnings ratio of -4.66 and a beta of 2.13.

Stitch Fix Company Profile

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.