The security saw a new bottom after a downgrade from J.P. Morgan Securities
Stitch Fix Inc (NASDAQ:SFIX) attracted a downgrade from J.P. Morgan Securities to "underweight" from "neutral" this morning. The analyst in question noted the apparel e-tailer's top-line growth will likely remain challenged, with its customer base expected to shrink due to the current macro environment. In addition, the firm cited the company's struggles to transition its "Fix + Freestyle" business model.
The brokerage bunch was already skeptical of SFIX coming into today, with 16 of the 18 firms in coverage calling it a "hold," while two said "strong sell." And though short sellers have been hitting the exits lately, with short interest down 17.5% in the last two reporting periods, the security has failed to take off.
It's also worth noting shorts remain in control. The 13.49 million shares sold short account for 16.7% of the stock's available float, or almost four days' worth of pent-up buying power.
Today's bear note has pushed the equity 5% lower to trade at a fresh record low of $2.91. Stitch Fix stock has been struggling for much longer, however, with several of its rally attempts falling short of the $5 region since September. The shares have also slipped below a floor at the $3 region earlier, and now carry a 84.6% year-to-date deficit.