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 disappo i nting 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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