Market News

Here’s Why Stitch Fix Stock Rose 8.9% in Tuesday’s Extended Trade

Story Highlights

A corporate insider lapped up $5.43 million worth of SFIX stock last week. The insider activity also spiked investors’ interest and the stock rallied 8.9% in the after-hours trading session on July 12.

According to an SEC filing, Director John William Gurley bought shares of Stitch Fix, Inc. (NASDAQ: SFIX) for $5.43 million on July 8, 2022. Gurley lapped up one million shares of the company at $5.43 per share. This attracted investors’ attention and SFIX stock rose 8.9% in the after-hours trading session on July 12 to $5.59 per share.

The Director, who is also a 10% owner of Stitch Fix, held about 1.5% stake, or 1.22 million shares, in StitchFix before this transaction, according to a MarketWatch report. He now owns a 2.7% stake in the company.

According to TipRanks, which also provides a comprehensive list of daily insider transactions, various corporate insiders bought and sold SFIX stock in the last four months. Of these, only a few uninformative sell transactions, amounting to $1.71 million, have been recorded. These insiders include the company’s CEO, CFO, and Chief Legal Office & Secretary.

A pictorial representation of the aforementioned transactions is provided below:

Interestingly, TipRanks also provides a list of hot stocks that boasts of either a Very Positive or Positive insider confidence signal.

Wall Street’s Take on SFIX Stock

According to TipRanks, the Street has a Hold consensus rating on the stock, which is based on one Buy, 12 Holds and one Sell. SFIX’s average price forecast of $7.68 implies 49.4% upside potential.

TipRanks data shows that financial bloggers are 60% Bullish on SFIX, compared to the sector average of 63%. Meanwhile, hedge funds are Very Positive about the stock, as they bought 944,100 shares of  Stitch Fix in the last quarter.

Is This the Right Time to Buy SFIX Stock?

As of now, corporate insiders are seen taking advantage of the company’s weak stock price, which has fallen 73.5% so far this year. The recent insider activities also signal that this could be the right time to gain exposure to the stock that has upside potential of over 49.4%.

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