Stitch Fix Inc. [SFIX] is 2.75% higher this YTD. Is it still time to buy?



Stitch Fix Inc. [NASDAQ: SFIX] surged by $1.81 during the normal trading session on Thursday and reaching a high of $19.902 during the day while it closed the day at $19.44. The company report on January 6, 2022 that Stitch Fix Announces Share Repurchase Authorization of $150 Million.

Stitch Fix, Inc. (NASDAQ:SFIX), the leading online personal styling service, today announced that its Board of Directors has authorized a share repurchase program where Stitch Fix may purchase up to $150 million of its Class A common stock.

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“This share repurchase program reflects the confidence we have in our strategy, unique value proposition and the growth potential ahead for Stitch Fix, which we believe is not reflected in the current market valuation,” said Elizabeth Spaulding, CEO of Stitch Fix. “As a company, we are committed to creating long-term, sustainable value for our shareholders and our employees, and believe a share repurchase program, in addition to the disciplined investments we are making, will allow us to unlock the long term opportunity we see ahead. We remain relentlessly focused on continuing to build and improve on our unique client experience in the months and years to come as we continue on our journey to become the global destination for personalized shopping, styling and inspiration.”.

Stitch Fix Inc. stock has also loss -2.21% of its value over the past 7 days. However, SFIX stock has declined by -47.33% in the 3 months of the year. Over the past six months meanwhile, it has lost -67.95% and gained 2.75% year-on date.

The market cap for SFIX stock reached $2.22 billion, with 108.38 million shares outstanding and 80.16 million shares in the current float. Compared to the average trading volume of 3.07M shares, SFIX reached a trading volume of 4435246 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here’s what leading stock market gurus have to say about Stitch Fix Inc. [SFIX]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for SFIX shares is $25.00 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on SFIX stock is a recommendation set at 2.70. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Wells Fargo have made an estimate for Stitch Fix Inc. shares, keeping their opinion on the stock as Underweight, with their previous recommendation back on December 08, 2021. While these analysts kept the previous recommendation, UBS dropped their target price from $30 to $25. The new note on the price target was released on December 08, 2021, representing the official price target for Stitch Fix Inc. stock. Previously, the target price had yet another drop from $55 to $40, while Telsey Advisory Group kept a Outperform rating on SFIX stock. On December 08, 2021, analysts decreased their price target for SFIX shares from 50 to 38.

The Average True Range (ATR) for Stitch Fix Inc. is set at 1.67, with the Price to Sales ratio for SFIX stock in the period of the last 12 months amounting to 1.01. The Price to Book ratio for the last quarter was 4.40, with the Price to Cash per share for the same quarter was set at 2.73. Price to Free Cash Flow for SFIX in the course of the last twelve months was 97.04 with Quick ratio for the last quarter at 1.30.

SFIX stock trade performance evaluation

Stitch Fix Inc. [SFIX] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -2.21. With this latest performance, SFIX shares dropped by -22.15% in over the last four-week period, additionally sinking by -67.95% over the last 6 months – not to mention a drop of -66.37% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for SFIX stock in for the last two-week period is set at 43.05, with the RSI for the last a single of trading hit 48.40, and the three-weeks RSI is set at 39.95 for Stitch Fix Inc. [SFIX]. The present Moving Average for the last 50 days of trading for this stock 25.57, while it was recorded at 18.87 for the last single week of trading, and 41.84 for the last 200 days.

Stitch Fix Inc. [SFIX]: An insightful look at the core fundamentals

Operating Margin for any stock indicates how profitable investing would be, and Stitch Fix Inc. [SFIX] shares currently have an operating margin of -3.06 and a Gross Margin at +43.67. Stitch Fix Inc.’s Net Margin is presently recorded at -0.42.

Return on Total Capital for SFIX is now -10.95, given the latest momentum, and Return on Invested Capital for the company is -1.58. Return on Equity for this stock declined to -2.06, with Return on Assets sitting at -1.12. When it comes to the capital structure of this company, Stitch Fix Inc. [SFIX] has a Total Debt to Total Equity ratio set at 31.97. Additionally, SFIX Total Debt to Total Capital is recorded at 24.22, with Total Debt to Total Assets ending up at 17.99. Long-Term Debt to Equity for the company is recorded at 26.39, with the Long-Term Debt to Total Capital now at 20.00.

Reflecting on the efficiency of the workforce at the company, Stitch Fix Inc. [SFIX] managed to generate an average of -$788 per employee. Receivables Turnover for the company is 151.90 with a Total Asset Turnover recorded at a value of 2.65.Stitch Fix Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.30 and a Current Ratio set at 1.90.

Earnings per share (EPS) analysis for Stitch Fix Inc. [SFIX] stock

The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for SFIX. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Stitch Fix Inc. go to 22.80%.

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Stitch Fix Inc. [SFIX]: Insider Ownership positions

There are presently around $1,262 million, or 88.10% of SFIX stock, in the hands of institutional investors. The top three institutional holders of SFIX stocks are: WORKING CAPITAL ADVISORS (UK) LTD. with ownership of 9,066,812, which is approximately 47.677% of the company’s market cap and around 2.20% of the total institutional ownership; VANGUARD GROUP INC, holding 6,372,783 shares of the stock with an approximate value of $112.35 million in SFIX stocks shares; and JACKSON SQUARE PARTNERS, LLC, currently with $102.14 million in SFIX stock with ownership of nearly 110.619% of the company’s market capitalization.

Positions in Stitch Fix Inc. stocks held by institutional investors increased at the end of December and at the time of the December reporting period, where 138 institutional holders increased their position in Stitch Fix Inc. [NASDAQ:SFIX] by around 15,942,309 shares. Additionally, 119 investors decreased positions by around 9,912,788 shares, while 56 investors held positions by with 45,704,757 shares. The mentioned changes placed institutional holdings at 71,559,854 shares, according to the latest SEC report filing. SFIX stock had 35 new institutional investments in for a total of 1,272,062 shares, while 59 institutional investors sold positions of 923,542 shares during the same period.