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

Stitch Fix, Inc. (NASDAQ:SFIX) shares gapped up prior to trading 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 (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 analysts’ expectations of $298.04 million. During the same quarter in the prior year, the firm earned ($0.29) EPS. The business’s revenue for the quarter was down 5.5% compared to the same quarter last year.

Analyst Ratings Changes

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

Institutional Investors Weigh In On Stitch Fix

Institutional investors and hedge funds have recently made changes to their positions in the business. Disciplined Growth Investors Inc. MN boosted its position in shares of Stitch Fix by 48.1% during 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 in the last quarter. Ieq Capital LLC bought a new position in Stitch Fix in the fourth quarter worth approximately $299,000. Hodges Capital Management Inc. boosted 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 worth $9,518,000 after acquiring an additional 864,100 shares in the last quarter. JPMorgan Chase & Co. boosted its holdings in Stitch Fix by 72.7% in the third quarter. JPMorgan Chase & Co. now owns 161,225 shares of the company’s stock worth $455,000 after acquiring an additional 67,892 shares in the last quarter. Finally, Public Employees Retirement System of Ohio boosted its holdings in Stitch Fix by 2,253.6% in the third 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 in the last quarter. Institutional investors own 71.04% of the company’s stock.

Stitch Fix Price Performance

The firm has a fifty day simple moving average of $4.85 and a 200-day simple moving average of $4.08. The firm has a market cap 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.