The company pulled their quarterly and full-year outlook
Stitch Fix Inc (NASDAQ:SFIX) is up 23% to trade at $16.68, despite at least three analysts cutting their price targets today, including one to $11 from $15 from Piper Sandler. This surge came after SFIX became the latest company to pull its third quarter and full-year outlook due to the coronavirus outbreak. However, the e-tailer stated their business is still well-positioned for long-term success, with CEO Katrina Lake via conference call noting that the online styling company's main challenge is with product supply rather than demand.
After a record low of $10.90 on March 16, SFIX is up 34.5% in the last week. But prior to today's breakout, the shares have struggled to break out out over pressure at the $16 region. Thanks to today though, SFIX is set to topple its 30-day moving average on a closing basis for the first time since late February.
Though seven out of 13 analysts sport a "strong buy," there is still room for upgrades. Six out of 13 analysts in coverage sporting a "hold" could fuel more short-term upside.
An unwinding of short interest could send Stitch Fix higher, too. Shorts declined in the last reporting period, however, these pessimistic positions still make up a whole 41% of the stock's available float. Plus, it would take four days to buy back all these bearish bets at SFIX's average pace of trading, leaving the stock ripe for a short squeeze.