Stitch Fix (NASDAQ:SFIX) Shares Gap Down on Disappointing Earnings

Stitch Fix, Inc. (NASDAQ:SFIX – Get Rating)’s stock price gapped down before the market opened on Wednesday following a dissappointing earnings announcement. The stock had previously closed at $4.97, but opened at $4.40. Stitch Fix shares last traded at $4.53, with a volume of 3,528,182 shares trading hands.

The company reported ($0.34) EPS for the quarter, missing analysts’ consensus estimates of ($0.33) by ($0.01). Stitch Fix had a negative net margin of 13.41% and a negative return on equity of 62.71%. The company had revenue of $412.12 million for the quarter, compared to the consensus estimate of $412.94 million. During the same quarter last year, the company earned ($0.02) earnings per share. The company’s revenue was down 20.2% compared to the same quarter last year.

Analyst Ratings Changes

A number of research firms have recently issued reports on SFIX. Truist Financial reduced their price target on shares of Stitch Fix from $6.00 to $5.00 and set a “hold” rating on the stock in a research report on Wednesday, December 7th. UBS Group reduced their price target on shares of Stitch Fix from $4.30 to $4.20 and set a “neutral” rating on the stock in a research report on Wednesday, December 7th. Morgan Stanley raised their price target on shares of Stitch Fix from $3.00 to $4.00 and gave the stock an “equal weight” rating in a research report on Wednesday, January 18th. Evercore ISI dropped their price objective on shares of Stitch Fix from $7.00 to $6.00 and set an “in-line” rating on the stock in a report on Wednesday, December 7th. Finally, Wells Fargo & Company raised shares of Stitch Fix from an “underweight” rating to an “equal weight” rating and set a $4.00 price objective on the stock in a report on Friday, January 6th. Two research analysts have rated the stock with a sell rating and sixteen have issued a hold rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of “Hold” and an average target price of $6.34.

Institutional Trading of Stitch Fix

A number of hedge funds have recently bought and sold shares of SFIX. Federated Hermes Inc. boosted its holdings in Stitch Fix by 212.1% in the 1st quarter. Federated Hermes Inc. now owns 1,825,064 shares of the company’s stock valued at $18,378,000 after purchasing an additional 1,240,320 shares during the period. Millennium Management LLC boosted its holdings in Stitch Fix by 50.3% in the 4th quarter. Millennium Management LLC now owns 3,088,465 shares of the company’s stock valued at $9,605,000 after purchasing an additional 1,033,703 shares during the period. Renaissance Technologies LLC boosted its holdings in Stitch Fix by 59.4% in the 2nd quarter. Renaissance Technologies LLC now owns 2,697,576 shares of the company’s stock valued at $13,326,000 after purchasing an additional 1,005,176 shares during the period. Patient Capital Management LLC bought a new stake in Stitch Fix in the 3rd quarter valued at $2,616,000. Finally, Cubist Systematic Strategies LLC boosted its holdings in Stitch Fix by 155.1% in the 2nd quarter. Cubist Systematic Strategies LLC now owns 1,027,859 shares of the company’s stock valued at $5,078,000 after purchasing an additional 624,973 shares during the period. 68.38% of the stock is owned by institutional investors.

Stitch Fix Trading Down 0.4 %

The stock has a market capitalization of $548.49 million, a P/E ratio of -1.84 and a beta of 2.22. The business’s fifty day simple moving average is $4.43 and its two-hundred day simple moving average is $4.25.

About Stitch Fix

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Stitch Fix, Inc engages in the provision of personalized shipments of apparel, shoes, and accessories. The firm also delivers personalization to clients through the pairing of data science and human judgment. The company was founded by Katrina Lake and Erin Morrison Flynn in February 2011 and is headquartered in San Francisco, CA.