Shares of Stitch Fix Inc (NASDAQ: SFIX) are up 20% this morning on an SEC filing that confirmed a board member significantly raised his stake in the personal styling company.
Bill Gurley now has a 2.70% stake in Stitch Fix
Bill Gurley bought 1.0 million shares of the Nasdaq-listed firm on top of the 1.22 million he already held.
The insider who’s also a Director at Benchmark Capital paid $5.43 for each share on average. He now has a 2.70% stake in Stitch Fix. Reacting to the news, Jim Cramer said on CNBC’s “Squawk on the Street”:
This is an actual cash outlay by a guy I think we all respect, how’s really fabulous.
In total, insider hold nearly 18% of Stitch Fix.
Wall Street sees a 30% upside in Stitch Fix stock
Insider buying is broadly read as a “positive” as it represents management’s confidence in the company’s future. Wall Street currently rates “SFIX” at hold but sees upside to $7.91 a share on average that translates to a nearly 30% increase from here.
The news comes about a month after Stitch Fix reported disappointing results for its fiscal Q3 that it ended with 200,000 less clients than the same quarter last year. The stock is still down over 65% for the year.
In June, the personal styling company also laid off 15% of its salaried staff to cut costs amidst decades-high inflation.
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