Stitch Fix (NASDAQ:SFIX) Shares Gap Up Following Better-Than-Expected Earnings

Stitch Fix, Inc. (NASDAQ:SFIX) gapped up before the market opened on Wednesday after the company announced better than expected quarterly earnings. 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 changing hands.

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 net margin of 7.71% and a negative return on equity of 32.71%. The firm had revenue of $312.11 million during the quarter, compared to analysts’ expectations of $298.04 million. During the same period in the prior year, the company posted ($0.29) earnings per share. Stitch Fix’s revenue for the quarter was down 5.5% on a year-over-year basis.

Analyst Upgrades and Downgrades

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

Insider Activity at Stitch Fix

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 transaction of $77,079.20. Following the completion of the transaction, the insider now directly owns 913,962 shares in the company, valued at $4,213,364.82. The trade was a 1.80 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 16.95% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Stitch Fix

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Disciplined Growth Investors Inc. MN boosted its holdings in Stitch Fix by 48.1% in the 3rd quarter. Disciplined Growth Investors Inc. MN now owns 13,734,485 shares of the company’s stock valued at $38,731,000 after purchasing an additional 4,460,668 shares during the period. Cooper Creek Partners Management LLC lifted its stake in shares of Stitch Fix by 1,405.2% in the fourth quarter. Cooper Creek Partners Management LLC now owns 4,273,265 shares of the company’s stock valued at $18,418,000 after buying an additional 3,989,362 shares during the period. Jacobs Levy Equity Management Inc. grew its position in Stitch Fix by 142.9% during the fourth quarter. Jacobs Levy Equity Management Inc. now owns 2,464,863 shares of the company’s stock worth $10,624,000 after buying an additional 1,449,941 shares in the last quarter. Hodges Capital Management Inc. grew its position in Stitch Fix by 34.4% during the third quarter. Hodges Capital Management Inc. now owns 3,375,200 shares of the company’s stock worth $9,518,000 after buying an additional 864,100 shares in the last quarter. Finally, Norges Bank bought a new position in Stitch Fix during the fourth quarter valued at about $3,183,000. Institutional investors and hedge funds own 71.04% of the company’s stock.

Stitch Fix Trading Down 5.4 %

The firm has a fifty day simple moving average of $4.86 and a 200 day simple moving average of $4.08. The stock has a market cap of $507.35 million, a price-to-earnings ratio of -4.82 and a beta of 2.13.

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.