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

Stitch Fix, Inc. (NASDAQ:SFIX) gapped up before the market opened on Wednesday following a better than expected earnings announcement. 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 for the quarter, topping the consensus estimate of ($0.11) by $0.06. The firm had revenue of $312.11 million for the quarter, compared to analyst estimates of $298.04 million. Stitch Fix had a negative return on equity of 32.71% and a negative net margin of 7.71%. The company’s revenue for the quarter was down 5.5% on a year-over-year basis. During the same period in the previous year, the company posted ($0.29) earnings per share.

Analysts Set New Price Targets

A number of analysts recently issued reports on the company. Telsey Advisory Group reaffirmed a “market perform” rating and issued a $6.00 target price on shares of Stitch Fix in a research report on Wednesday. UBS Group boosted their price target on Stitch Fix from $2.80 to $5.00 and gave the stock a “neutral” rating in a research report on Wednesday, December 4th. Finally, Canaccord Genuity Group boosted their price target on Stitch Fix from $5.00 to $6.00 and gave the stock a “hold” rating in a research report on Wednesday, December 11th. One research analyst has rated the stock with a sell rating and five have given a hold rating to the stock. According to MarketBeat, the company has a consensus rating of “Hold” and a consensus price target of $4.50.

Insiders Place Their Bets

In other news, insider Anthony Bacos sold 16,720 shares of the company’s stock in a transaction that occurred 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 transaction, the insider now owns 913,962 shares of the company’s stock, valued at approximately $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 can be accessed through this link. Company insiders own 16.95% of the company’s stock.

Institutional Investors Weigh In On Stitch Fix

Several institutional investors and hedge funds have recently added to or reduced their stakes in SFIX. Disciplined Growth Investors Inc. MN increased its holdings in shares of Stitch Fix by 48.1% during the third quarter. Disciplined Growth Investors Inc. MN now owns 13,734,485 shares of the company’s stock worth $38,731,000 after buying an additional 4,460,668 shares in the last quarter. Ieq Capital LLC acquired a new stake in Stitch Fix in the fourth quarter valued at $299,000. Hodges Capital Management Inc. increased its holdings in Stitch Fix by 34.4% in the third quarter. Hodges Capital Management Inc. now owns 3,375,200 shares of the company’s stock valued at $9,518,000 after purchasing an additional 864,100 shares during the period. JPMorgan Chase & Co. grew its holdings in Stitch Fix by 72.7% during the 3rd quarter. JPMorgan Chase & Co. now owns 161,225 shares of the company’s stock worth $455,000 after acquiring an additional 67,892 shares during the period. Finally, Public Employees Retirement System of Ohio grew its holdings in Stitch Fix by 2,253.6% during the 3rd quarter. Public Employees Retirement System of Ohio now owns 146,750 shares of the company’s stock worth $414,000 after acquiring an additional 140,515 shares during the period. 71.04% of the stock is currently owned by institutional investors.

Stitch Fix Price Performance

The stock has a market cap of $492.77 million, a P/E ratio of -4.66 and a beta of 2.13. The company has a fifty day moving average price of $4.86 and a 200 day moving average price of $4.08.

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.