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

Stitch Fix, Inc. (NASDAQ:SFIX)’s share price 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 traded.

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 business’s quarterly revenue was down 5.5% on a year-over-year basis. During the same quarter in the previous year, the firm earned ($0.29) EPS.

Analyst Upgrades and Downgrades

Several research analysts have weighed in on the company. 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. Canaccord Genuity Group lifted their target price on Stitch Fix from $5.00 to $6.00 and gave the stock a “hold” rating in a research note on Wednesday, December 11th. Finally, Telsey Advisory Group reiterated a “market perform” rating and set a $6.00 target price on shares of Stitch Fix in a research note on Wednesday. One analyst has rated the stock with a sell rating and five have issued a hold rating to the company. According to data from MarketBeat, the stock has a consensus rating of “Hold” and an average target price of $4.50.

Institutional Trading of Stitch Fix

Several institutional investors have recently added to or reduced their stakes in SFIX. SBI Securities Co. Ltd. bought a new stake in Stitch Fix in the 4th quarter valued at $29,000. Caprock Group LLC bought a new stake in Stitch Fix in the 3rd quarter valued at $33,000. Wealth Enhancement Advisory Services LLC bought a new stake in Stitch Fix in the 3rd quarter valued at $36,000. Meeder Asset Management Inc. bought a new stake in Stitch Fix in the 3rd quarter valued at $44,000. Finally, Pallas Capital Advisors LLC bought a new stake in Stitch Fix in the 4th quarter valued at $46,000. 71.04% of the stock is currently owned by institutional investors.

Stitch Fix Trading Down 7.0 %

The company has a 50 day moving average of $4.85 and a 200-day moving average of $4.08. The firm has a market capitalization of $471.84 million, a P/E ratio of -4.48 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.