Stitch Fix (SFIX) continues to ship products via distribution centers in the United States, considering all health and safety measures.
After teasing the launch of their new startup last year, e-commerce veteran Julie Bornstein and her technical co-founder, Amit Aggarwal, are today launching The Yes, a women's shopping platform that they've been quietly building for 18 months and they say will create tailor-made experiences for each user, courtesy of its sophisticated algorithms. To learn more about how it breaks through in a world rife with e-commerce companies, we talked with Bornstein, who previously spent four years as COO of the styling service Stitch Fix and before that spent years as a C-level executive at Sephora. Aside from the fact that The Yes is taking an app-only approach (unlike Stitch Fix), and doesn't have a subscription model, Bornstein says that The Yes is very much focused on people "who want to shop" versus those who want their shopping done for them.
The S&P 500 has gained nearly 11% so far this month, and this rally is truly what seems to be – a bullish rally in the midst of a larger bear market. And this, of course, brings us to the main issue that investors must answer now: where to put their money. Markets bottomed on March 23, almost four weeks ago, and that trough brought many stocks down to an attractive point of entry. The current rally has not pushed them back high enough to erase that; the current price plateau offers latecomers a chance to buy into the rally while prices are still attractively low.So how to recognize the most compelling buying opportunities?One way is to follow the insiders. The word may have an unsavory flavor, especially after recent allegations that several Senators made ‘inside trades’ just as the coronavirus lockdowns started. But in reality, insiders are just corporate officers and Board members, the men and women responsible to shareholders for running America’s publicly traded corporations – and who also, by virtue of their positions, have access to earlier and better knowledge of the factors that will move stock values. They do trade on that knowledge – and to help keep the playing field level, they are required to make their inside stock moves public. Following their purchases is a viable strategy for finding potentially profitable stock plays.TipRanks has the tools to help you do just that. The Insiders’ Hot Stocks page shows which stocks top insiders are most active on, for both purchases and sales. You can sort insider trades by a variety of filters, including trading strategy. We’ve done some of the legwork for you, and pulled up three stocks with recent informative buy-side transactions. Here are the results.Fortress Transportation and Infrastructure (FTAI)The first company on our list today, Fortress Transportation, resembles REITs. Fortress buys, owns, and manages properties in the transportation industry, especially in the infrastructure segment. Where it deviates from the usual REIT format is in its other assets: Fortress also owns and operates the actual equipment in the transport niche, equipment like shipping containers, offshore drilling ships, and commercial jet aircraft. That last, commercial aircraft, makes up over 61% of the company’s asset portfolio. Fortress generates its profits through leases on its owned assets.On the insider front, three informative purchases have swung sentiment on this stock strongly positive. Two were made by members of the Board of Directors; the smaller, by Kenneth Nicholson, for $215,700, and the larger, by Paul Goodwin, for $435,880. The truly huge purchase, however, was made by a 10% owner in the company – an institutional investor, the Washington State Investment Board, which laid down $19.9 million for a 2.353 million shares. The magnitude of these purchases are clear indicators of confidence in the stock.As last year ended, FTAI finished with strong quarterly earnings. The 12 cents reported were 71% above the forecast, it was the third consecutive quarter to beat the forecast. Better yet, for investors, Fortress reported that, as of the end of 2019, 80% of its aviation equipment assets were leased out – and that the average remaining lease term was 29 months. This puts the company in a strong position to weather the coronavirus storm, as it guarantees income from half of the company’s assets for another two years.In addition to a solid fiscal footing, FTAI offers a 33-cent quarterly dividend. At $1.32, the annualized payment gives the stock a yield of 14.4%, more than enough to attract investors now that the Fed has cut rates back to near-zero, and made sweeter by a 5-year reliable payment history.Stephens analyst Justin Long is also confident in FTAI. He notes the stock’s high dividend, as well as its advantageous debt position, despite a heavy recent sell-off. At the bottom line, he writes, “We feel like the damage has been done with a draconian scenario being priced-in. We would also note FTAI is relatively well positioned in the aviation leasing industry with total debt to cap under 50% and no debt maturities until 2022... We also believe the infrastructure assets should drive substantial cash flow over the long term with FTAI continuing to opportunistically assess opportunities to monetize these assets…”Long puts a Buy on this FTAI shares, and his $22 price target implies a powerful upside potential of 125%, another attractive feature to go along with the high-yield dividend. (To watch Long’s track record, click here)Fortress has a Strong Buy rating from the analyst consensus, with 6 Buys outweighing a single Hold. The shares sell for $9.77, and the $21.43 average price target suggests that there is room for an impressive 118% upside growth in the coming 12 months. (See Fortress stock analysis at TipRanks)Stich Fix, Inc. (SFIX)Now here is an interesting niche; this small-cap company works to personalize online clothing shopping. The company’s platform allows customers to make stylistic preferences – and then receive periodic packages of clothing, selected by the company’s stylists. Once received, customers can choose to keep or return some or all of the clothes choices. It’s a unique take on eCommerce, combining data science, machine learning, and a personal touch to predict what customers will enjoy most.Looking ahead, the company is expected to post a 15-cent per share loss in fiscal Q3, for the period in this month – and covering, in large part, the economic shutdown due to the COVID-19 epidemic.But despite the tough path forward, two company directors have made multi-million dollar purchases in recent days. William Gurley spent $15.8 million on a 1 million share purchase this past Monday; Steven Spurlock spent $16.6 million on 1.05 million shares the same day. The two buys swung the sentiment need sharply into positive territory, and also show that both shareholders are willing to take advantage of current low prices to expand their holdings.Youssef Squali, 5-star analyst with SunTrust Robinson, explains why this may be a good idea. Acknowledging that the company has sharply pulled back its Q3 and full year guidance due to the commercial disruptions of COVID-19, Squali also says, “While we recognize that demand trends are likely to worsen in 2Q and possibly 3Q before they start getting better in 4Q (our estimate), we believe that shareholders with a longer-term horizon will be rewarded given the company's strong competitive positioning and sustainable business model…”For that long term, Squali sees a fit to place $27 price target, implying 80% growth for the stock. In line with this, he maintains his Buy rating. (To watch Squali’s track record, click here)The Moderate Buy analyst consensus view on this stock is backed by a near-even split of 8 Buys and 6 Holds. The $19.31 average price target indicates a 23% premium from the $15.70 current trading price of the shares. (See Stitch Fix stock analysis at TipRanks)Public Storage (PSA)Public Storage is well known for its chain of self-storage facilities across the US. In organization, PSA is a real estate investment trust, owning the properties and deriving income from leases and management fees.In recent days, three company Board members – Avedick Baruyr, Wayne Hughes, and Gary Pruitt – each purchased a block of 5,000 shares, for the price of $471,250. The purchases show clear confidence in the stock. These purchases bring the insider buys of the past three months to well over $1.5 million dollars.Public Storage came into 2020 with rising earnings, although results were just below the forecasts. Finishing calendar year 2019, PSA showed $2.84 in Q4 funds from operations, along with $598 million in total quarterly revenues. For the full year, FFO was $10.75, up 1.8% yoy, and revenue came in at $2.4 billion, up 1.4% from 2018. The numbers give the company a firm foundation, which it found it needed to face the dislocations in today’s economic landscape. Looking forward, PSA will be reporting first quarter results at the end of the month, and is expected to show $2.58 in FFO – a sequential decline of 9.2%.In a bright spot, however, PSA is maintaining its dividend. The company has made the payments reliably for the last 11 years – an admirable record – and the current payment is $2 per share quarterly. This gives a payout ratio of 70%, indicating that the dividend is affordable at current income levels – and will likely stay affordable, even if FFO slips this year. The annualized payment of $8 per share makes the dividend yield 4.1%; not huge, but still double the average among S&P listed companies.Turning to Wall Street’s view of the stock, we find that Merrill Lynch analyst Jeffrey Spector has recently upgraded his stance on PSA. Spector bumped his outlook from Neutral to Buy, and raised his price target to $267, suggesting a robust 36% upside. (To watch Spector’s track record, click here)Backing his view, Spector wrote, “PSA remains well positioned in our view, with minimal debt coming due in 2020 and ~$400M cash on hand as of 4Q… PSA [has] ample liquidity to take advantage of acquisition opportunities that arise.”Overall, PSA shares are still rated a "hold" by Wall Street’s analyst corps, based on an even 3-way split: 3 Buys, 3 Holds, and 3 Sells. The stock sells for $196.48 – and the average price target of $208.78 suggests only 6% upside. (See Public Storage stock analysis on TipRanks)To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
Stitch Fix, Inc. (SFIX), the leading online personal styling service, today announced that it is withdrawing its business outlook for the third quarter and fiscal year 2020 previously provided in its shareholder letter on March 9, 2020, due to the increasing uncertainty resulting from the COVID-19 pandemic. Stitch Fix previously announced on March 20, 2020 that it had temporarily closed two of its distribution centers in South San Francisco, California and Bethlehem, Pennsylvania, to comply with local public health orders. The company has continued to ship products through distribution centers across the United States, with significantly increased health and safety precautions as outlined by government and public health guidelines such as those recommended by the CDC and at substantially limited capacity.
Scotia Global Asset Management announces April 2020 cash distribution for Scotia Strategic Fixed Income ETF Portfolio
Former COO of Stitch Fix Julie Bornstein joins Yahoo Finance’s On The Move panel to weigh in on the launch of her new shopping platform ‘The Yes’.
Investors need to pay close attention to Stitch Fix (SFIX) stock based on the movements in the options market lately.
SAN FRANCISCO, May 19, 2020 -- Stitch Fix, Inc. (NASDAQ:SFIX), the leading online personal styling service, today announced that it will release its financial results for its.
If you dismiss a company without doing the research, you can miss out on interesting businesses like these.
Stitch Fix Inc. said late Wednesday it was pulling its outlook for the year because of the "increasing uncertainty" arising from the COVID-19 pandemic. Back in March, Stitch Fix forecast a lower-than-expected revenue outlook of $465 million to $475 million for the fiscal third quarter, and $1.81 billion to $1.84 billion for the year. At last check, analysts surveyed by FactSet were looking for third-quarter revenue of $461.8 million, and full-year revenue of $1.81 billion. The company said it had to close two of its distribution centers -- one in South San Francisco, Calif., and one in Bethlehem, Penn. -- to comply with local public health orders. "While we anticipated our business would be impacted, we did not have visibility into the extent to which it would disrupt our distribution centers," said Katrina Lake, Stitch Fix chief executive, in a statement. Stitch Fix shares declined 0.5% after hours, following a 1.7% rise to close the regular session at $13.57.
The number of Americans seeking jobless benefits soared again on Thursday, in the latest sign of how the coronavirus that causes COVID-19 is impacting all sectors of the economy, as companies are forced to furlough and lay off workers
We hate to say this but, we told you so. On February 27th we published an article with the title Recession is Imminent: We Need A Travel Ban NOW and predicted a US recession when the S&P 500 Index was trading at the 3150 level. We also told you to short the market and buy […]
Nike has been a steady performer for investors over the years, but Stitch Fix is aiming to disrupt the global apparel industry with data science.
Stitch Fix (SFIX) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.
Stitch Fix (NASDAQ: SFIX) has mostly missed out on the market rally in recent weeks. Stitch Fix hasn't made any announcements. Nearly every e-commerce stock has been setting record highs in recent weeks, including Amazon, Shopify, Etsy, and Wayfair, in spite of the broader market malaise.
Online personal styling service Stitch Fix (SFIX) has announced that it is withdrawing its business outlook for the third quarter and fiscal year 2020, due to the increasing uncertainty resulting from the COVID-19 pandemic.Stitch Fix also revealed that it has experienced considerable disruption in its logistics function as warehouses have closed for various periods and operated at lower capacity resulting in delays. For instance, SFIX has had to close three of its five facilities at various points due to local directives, though all five facilities are currently open.“While we anticipated our business would be impacted, we did not have visibility into the extent to which it would disrupt our distribution centers,” said CEO Katrina Lake in a statement.From a demand standpoint, the most loyal clients have been resilient, and the company has seen a relative low number of auto-ship cancellations. However, conversion in new and infrequent clients has been more challenging over the last couple of weeks.According to Stifel Nicolaus analyst Scott Devitt, Stitch Fix is well positioned to manage through the temporary disruption given its strong balance sheet, $397mm in cash and investments, no long-term debt, and positive free cash flow.Although Stitch Fix did not provide any specific quarter-to-date numbers as part of its update, Devitt reduced his price target to $24 from $26. “We are reducing our F3Q:20 revenue growth estimate from 15% to 2% and reducing our FQ4:20 growth estimate from 7% to -5%. We are reducing our FY:21 revenue estimate by 5%” he explained.However the analyst concluded on a positive note: “We do expect Stitch Fix to emerge from this unfortunate period in a favorable position relative to competing apparel platforms/retailers. The company has the platform strength and flexibility to effectively manage through the current period.”Overall, analysts have a Moderate Buy consensus on the stock, according to TipRanks. That comes with a $20 average analyst price target (46% upside potential). (See Stitch Fix’s stock analysis on TipRanks)Related News: Morgan Stanley: 2 Stocks to Consider Buying (And 1 to Forget) GenMark Sees 80% Q1 Revenue Boost on Covid-19 Tests Starbucks Feels The Pain; Expects 46% Fall In Earnings, Pulls Full Year Guidance More recent articles from Smarter Analyst: * Qualcomm Stock Remains a Long-Term Growth Story, Says 5-Star Analyst * Gilead Sciences: Possible COVID-19 Treatment Already Priced in the Stock, Says Analyst * Can Netflix (NFLX) Stock Live Up to the Q1 Hype? * Australia to Force Google and Facebook to Pay For News Content
Stitch Fix (NASDAQ: SFIX) stock has taken a hit along with brick-and-mortar retailers due to the uncertainty arising from widespread unemployment and non-essential business closures. Stitch Fix was founded on the concept of providing its customers with a personalized clothes-shopping experience without brick-and-mortar stores or sifting through an endless selection of items on an online website. This business model is superior to the classic brick-and-mortar store with high fixed costs, low inventory turnover, and a reliance on discounting.
Aside from our house, all the money my wife and I have saved over the last 30-plus years is invested in stocks. At 53 years young, we hold a concentrated investment portfolio that will fund our eventual retirement.
SAN FRANCISCO, May 26, 2020 -- Stitch Fix, Inc. (NASDAQ: SFIX), the leading online personal styling service, today announced that Katrina Lake, founder and CEO of Stitch Fix,.
Scotia Global Asset Management announces May 2020 cash distribution for Scotia Strategic Fixed Income ETF Portfolio