The stock of Stitch Fix Inc. (NASDAQ:SFIX) decreased by -$0.19 on Tuesday to finish at $3.86, down -4.69 percent. The last five days have seen an average of 1,659,380 shares of common stock traded. 14 times new highs were reached in the current year, with a gain of $0.75. The average number of shares traded over the last 20 days was 1,833,345, while the average volume over the last 50 days totaled 3,188,854.
SFIX stock dropped -4.22% since last month. On 08/15/23, the company’s shares reached a one-month low of $3.84. The stock touched a high of $8.85 on 02/02/23, after rallying from a low of $2.63 in 52 weeks. The price of SFIX stock has risen by 24.12% or $0.75 this year, reaching a new high 14 times. Still, the stock price is down -56.36% from the 52-week high.
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Insider Transactions
SFIX stock investors should be aware that Stitch Fix Inc. (SFIX) stock had its last reported insider trading activity 27 days ago on Jul 20. On Jul 20, Chief Legal Officer O’Connor Casey sold 9,262 shares at $4.21 each. This transaction resulted in the insider making $39,008. On Apr 03, Barkema Sarah sold 10,000 shares at a price of US$5.00. After the transaction, the insider now owns 65,903 shares. Chief Legal Officer O’Connor Casey had earlier sold 12,000 shares on Mar 24 for $5.14 a share. The transaction was completed for $61,674.
Valuation Metrics
Beta for the stock is 2.26. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 0.25, the price-to-book (PB) ratio of 1.75.
Financial Health
For the three months ended April 29, Stitch Fix Inc.’s quick ratio was 1.10, while its current ratio was 1.70, indicating its ability to pay off its debt. As far as profitability goes, gross margin for the trailing twelve months is 41.40% percent. Stitch Fix Inc.’s EBITDA margin for the year ended April 29 was -7.18%, whereas its operating margin stood at -14.10% for the same period. Based on annual data, it had gross profit of $908.47 million and revenue of $2.07 billion.
Investors will also look at the performance of the company’s management in order to determine the potential profitability of their investment. SFIX’s return on assets (ROA) during the last 12 months has been -33.90%. There was a -63.70% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was -85.10%.
Earnings Surprise
According to Stitch Fix Inc.’s quarterly financial report for the quarter that ended April 29, it had $50.14 million in cash and short-term investments. A lower net income was reported in the quarter under review than the previous quarter. Net income for the quarter came in at $394.91 million, while revenues fell by -24.82% to $412.12 million. It was predicted that Stitch Fix Inc.’s quarterly earnings would be -$0.19, but it ended up being -$0.3, beating the consensus by 36.70%. EBITDA was -$14.57 million for the quarter. At the end of Stitch Fix Inc.’s most recent quarter ended April 29, its liabilities totaled 406.19 million, while its total debt was $164.61 million. Equity owned by shareholders amounts to $113.77 million.
Technical Picture
Here’s a quick look at Stitch Fix Inc.’s (SFIX) price momentum from a technical perspective. As of 15 August, the RSI 9-day stood at 32.22%, suggesting the stock is Neutral, with a 56.00% historical volatility rate.
The stochastic %K and %D were 8.42% and 11.45% respectively, while the average true range (ATR) was 0.27. Based on the 14-day stochastic reading of 1.47%, the RSI (14) reading is 39.83%. On the 9-day MACD Oscillator, the stock is at -0.27, and the 14-day reading is at -0.45.
Analyst Ratings
In its most recent analyst report, Wells Fargo raised its rating on Stitch Fix Inc. (NASDAQ: SFIX) to an Equal weight. Prior to this, analysts firm rated the stock as an Underweight. Analysts have assigned Stitch Fix Inc. (SFIX) an Hold rating. SFIX is a stock that is recommended for selling by 2 brokerage firms, while 14 companies recommend holding. The stock is underweighted by 0 analysts. Among the analysts who rate the stock, 0 rates it overweight and 0 others recommend it as a buy.
What is SFIX’s price target for the next 12 months?
The current consensus forecast for the stock is between $3.00 and $5.00, with a median target price of $4.55. In analyzing these forecasts, the average price target given by analysts for Stitch Fix Inc. (SFIX) is $4.42.
