Insider Trading January 22, 2026

Stitch Fix's Chief Legal Officer Executes Stock Sales Worth $725K During January Trading Plan

Casey O’Connor divests shares amid company’s revenue growth and credit facility extension

By Priya Menon SFIX
Stitch Fix's Chief Legal Officer Executes Stock Sales Worth $725K During January Trading Plan
SFIX

Casey O’Connor, Stitch Fix’s Chief Legal Officer, sold over $725,000 worth of company stock through a scheduled trading plan in January 2026. Concurrently, the company reported revenue exceeding forecasts and extended its credit agreement maturity, signaling positive financial movements despite client declines.

Key Points

  • Casey O’Connor, Stitch Fix's Chief Legal Officer, sold 138,752 shares worth about $725,903 under a Rule 10b5-1 trading plan in January 2026 while exercising options for 68,752 shares at $3.80 each.
  • Stitch Fix exceeded revenue forecasts for the first quarter of fiscal 2026 with $342.1 million in revenue and maintained EPS in line with expectations at -$0.05.
  • The company extended its first lien credit agreement maturity date from December 2026 to December 2028 and received Market Perform ratings with a $6.00 price target from key analysts, noting signs of recovery after years of declines.

Casey O’Connor, the Chief Legal Officer for Stitch Fix, Inc. (NASDAQ: SFIX), completed a series of stock sales in January 2026, liquidating shares valued in total at $725,903. These transactions took place between January 20 and January 22 under a Rule 10b5-1 pre-established trading plan, a mechanism that allows insiders to trade shares in a structured manner.

On January 20, O’Connor sold 83,641 shares at an average price of $5.1586 each, with individual sale prices fluctuating between $4.91 and $5.39. The following day, an additional 13,852 shares were sold at an average price of $5.34. The final tranche occurred on January 22, where 41,259 shares sold for an average of $5.3434, ranging narrowly from $5.34 to $5.345 per share. Notably, these sale prices are situated close to the stock’s 52-week peak of $5.94, a level approached amidst a volatile trading history. Over the past year, the stock has gained approximately 6% despite significant fluctuations.

Alongside the sales, O’Connor also exercised stock options to purchase 68,752 shares at a strike price of $3.80 per share, accumulating a total value of $261,257. After these activities, O’Connor’s direct holding amounts to 542,071 shares of Stitch Fix’s Class A Common Stock.

On the corporate front, Stitch Fix released its fiscal year 2026 first-quarter earnings, reporting revenue of $342.1 million, surpassing the expected $336.08 million. Earnings per share met analysts’ anticipations at negative five cents (-$0.05). Furthermore, the company amended its first lien credit agreement with Citibank, extending the debt maturity date from December 2026 to December 2028, thereby lengthening financial flexibility.

Analyst firms Bernstein and Telsey Advisory Group have maintained their Market Perform ratings for Stitch Fix, keeping a $6.00 price target. Both firms highlight Stitch Fix’s nascent recovery signals following several years of revenue declines. The company has successfully reported better-than-expected revenue and adjusted EBITDA for five consecutive quarters. Despite a 5.2% year-over-year decrease in active clients during the quarter, this rate of decline marks an improvement compared with recent years. Moreover, the sequential uptick of 180 basis points in active clients and a 5.3% increase in net revenue per active client reflect positive momentum.

Guidance from Stitch Fix forecasts 4-6.5% growth for fiscal 2026, expected to outpace broader market averages, suggesting an optimistic outlook despite ongoing challenges.

Risks

  • Despite revenue beat, Stitch Fix faces ongoing challenges with a 5.2% year-over-year decline in active clients, indicating potential headwinds in customer retention.
  • The company reported negative earnings per share, signaling continuing profitability struggles that could affect investor confidence and future capital access.
  • Stock sales by a senior insider, while pre-arranged, may be perceived by investors as reduced internal confidence, potentially influencing market sentiment.

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