Why Stitch Fix Stock Sold Off This Week
Following the post-earnings bounce last week, shares of Stitch Fix (NASDAQ: SFIX) were trading down 10.8% week to date on Thursday. The dip can partly be explained by the broader market sell-off that started this month, but it can also be tied to other news by the company.
At the start of the week, the personal styling service filed to register $191 million worth of new shares at a proposed maximum offering price of $35.43 per share. New share issuances are usually frowned on by market participants, since they dilute existing shareholders' investment. The timing of this one certainly looks questionable, since Stitch Fix's share price is already well off its highs this year.
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Source Fool.com
