Stocks of Stitch Fix Inc. (SFIX) are poised to climb above their peers

Stitch Fix Inc. (NASDAQ: SFIX) stock fell -5.57% on Monday to $3.05 against a previous-day closing price of $3.23. With 5.23 million shares changed hands, the volume of the stock remained heavier than its average volume of 2.13 million shares. During the session, the Apparel Retail company that operates in wider Consumer Cyclical sector, reached to the highest price of $3.2100 whereas the lowest price it dropped to was $3.0000. The 52-week range on SFIX shows that it touched its highest point at $6.03 and its lowest point at $2.63 during that stretch. It currently has a 1-year price target of $4.42. Beta for the stock currently stands at 2.27.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of SFIX was down-trending over the past week, with a drop of -21.99%, but this was down by -19.31% over a month. Three-month performance dropped to -24.13% while six-month performance fell -40.20%. The stock lost -38.13% in the past year, while it has lost -1.93% so far this year. A look at the trailing 12-month EPS for SFIX yields -2.15 with Next year EPS estimates of -0.76. For the next quarter, that number is -0.21. This implies an EPS growth rate of -799.10% for this year and 48.30% for next year. EPS is expected to grow by 29.60% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 36.03%.

Float and Shares Shorts:

At present, 115.44 million SFIX shares are outstanding with a float of 81.51 million shares on hand for trading. On Aug 30, 2023, short shares totaled 9.49 million, which was 8.34% higher than short shares on Jul 30, 2023. In addition to Ms. Katrina M. Lake as the firm’s Founder & Exec. Chairperson, Mr. Matt Baer serves as its Chief Exec. Officer.

Institutional Ownership:

Through their ownership of 91.08% of SFIX’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 60.86% of SFIX, in contrast to 25.39% held by mutual funds. Shares owned by individuals account for 25.27%. As the largest shareholder in SFIX with 13.56% of the stake, Working Capital Advisors holds 11,979,753 shares worth 11,979,753. A second-largest stockholder of SFIX, BlackRock Fund Advisors, holds 6,845,853 shares, controlling over 7.75% of the firm’s shares. Disciplined Growth Investors, Inc is the third largest shareholder in SFIX, holding 6,133,004 shares or 6.94% stake. With a 2.77% stake in SFIX, the Vanguard Total Stock Market ETF is the largest stakeholder. A total of 2,447,324 shares are owned by the mutual fund manager. The iShares Russell 2000 ETF, which owns about 2.20% of SFIX stock, is the second-largest Mutual Fund holder. It holds 1,946,096 shares valued at 8.54 million. Bridgeway Small Cap Value Fund holds 1.33% of the stake in SFIX, owning 1,175,600 shares worth 5.16 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for SFIX since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With SFIX analysts setting a high price target of $5.00 and a low target of $3.00, the average target price over the next 12 months is $4.42. Based on these targets, SFIX could surge 63.93% to reach the target high and fall by -1.64% to reach the target low. Reaching the average price target will result in a growth of 44.92% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.

Summary of Insider Activity:

Insiders traded SFIX stock several times over the past three months with 1 Buys and 1 Sells. In these transactions, 1,100,000 shares were bought while 9,262 shares were sold. The number of buy transactions has increased to 11 while that of sell transactions has risen to 16 over the past year. The total number of shares bought during that period was 2,441,308 while 203,535 shares were sold.

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