Stitch Fix Stock Spurned By Piper Jaffray Analyst

The stock has seen a significant sell-off since its mid-September record peak

Shares of Stitch Fix Inc (NASDAQ:SFIX) are 3% lower at $22.81 in early trading, after being hit with a price-target cut to $21 from $23 at Piper Jaffray. Analyst Erinn Murphy cited an internal survey that found a low usage frequency on the Stitch Fix platform. In response, the stock is down 3.3% at $22.92.

Following its impressive climb up the charts from its June bottom to a Sept. 18 record high of $52.44, the stock has suffered, most recently falling subject to a steep post-earnings bear gap on Oct. 2. The online styling name has now pulled back below the site of highs from before its rally began in June near the $24 area.

Overall, analyst sentiment has been mixed toward SFIX, with a slight majority leaning bearish. As of yesterday's close, five of the nine brokerage firms covering the e-tailer had tepid "hold" recommendations. However, it's worth noting thatthe stock's average 12-month price target of $36.33 comes in at a whopping 59% upside to current levels.

Lastly, short interest on Stitch Fix stock fell 6.4% during the most recent reporting period, and now accounts for 23% of its total available float. At the security's average pace of daily trading, it would take short sellers just two days to buy back their remaining bearish bets.