Reformation Inc. (NYSE:REF) Sees Large Increase in Short Interest

Reformation Inc. (NYSE:REF) was the recipient of a significant growth in short interest during the month of August. As of August 31st, there was short interest totaling 2,199,543 shares, a growth of 150.2% from the August 15th total of 879,261 shares. Based on an average daily volume of 419,211 shares, the days-to-cover ratio is currently 5.2 days. Currently, 3.7% of the company’s shares are short sold.

Insider Activity at Reformation

In related news, Director Yael Aflalo sold 60,298 shares of the company’s stock in a transaction on Tuesday, September 1st. The shares were sold at an average price of $13.95, for a total transaction of $841,157.10. Following the completion of the sale, the director directly owned 11,665,505 shares in the company, valued at $162,733,794.75. This represents a 0.51% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, major shareholder Scsp Refo sold 149,596 shares of the company’s stock in a transaction dated Tuesday, September 1st. The shares were sold at an average price of $13.95, for a total transaction of $2,086,864.20. Following the transaction, the insider directly owned 28,942,153 shares of the company’s stock, valued at approximately $403,743,034.35. This trade represents a 0.51% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 4,401,122 shares of company stock valued at $61,395,652 in the last quarter.

Reformation Stock Performance

Shares of NYSE:REF traded up $1.04 during trading hours on Friday, hitting $14.19. 567,369 shares of the company’s stock traded hands, compared to its average volume of 331,133. Reformation has a 1 year low of $12.83 and a 1 year high of $17.26.

Reformation (NYSE:REF) last posted its quarterly earnings results on Thursday, September 10th. The company reported $0.23 earnings per share for the quarter, beating the consensus estimate of $0.20 by $0.03. The company had revenue of $155.23 million for the quarter, compared to the consensus estimate of $154.61 million. The firm’s revenue was up 24.1% compared to the same quarter last year. As a group, equities research analysts predict that Reformation will post 0.15 EPS for the current fiscal year.

Wall Street Analyst Weigh In

REF has been the subject of a number of analyst reports. Telsey Advisory Group began coverage on shares of Reformation in a research note on Monday, August 24th. They set an “outperform” rating and a $20.00 price objective for the company. William Blair started coverage on Reformation in a research report on Monday, August 24th. They set an “outperform” rating for the company. BTIG Research reiterated a “buy” rating on shares of Reformation in a research report on Friday. Guggenheim reaffirmed a “buy” rating and set a $20.00 price objective on shares of Reformation in a research report on Friday. Finally, JPMorgan Chase & Co. initiated coverage on Reformation in a research note on Monday, August 24th. They issued an “overweight” rating and a $21.00 price target for the company. Eight analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $19.25.

Trending Headlines about Reformation

Here are the key news stories impacting Reformation this week:

• Positive Sentiment: Reformation reported second-quarter fiscal 2026 adjusted earnings of $0.23 per share, exceeding the $0.20 consensus estimate. Revenue rose 24.1% year over year to $155.23 million, while net income increased 79.4% and adjusted EBITDA margin expanded 320 basis points to 16.4%. Reformation Announces Second Quarter Fiscal 2026 Results
• Positive Sentiment: The company issued fiscal 2026 revenue guidance of $602 million to $606 million, slightly above the $601.3 million analyst consensus, reinforcing confidence in continued growth. Reformation’s first public quarter delivers double-digit growth and an upbeat outlook
• Positive Sentiment: Management outlined plans to double its store fleet over the next five years, offering a long-term expansion opportunity if the brand can scale its retail footprint while maintaining margins. Reformation charts path to double store fleet in five years
• Positive Sentiment: Royal Bank of Canada reaffirmed an “outperform” rating with an $18 price target, while Guggenheim maintained a “buy” rating and a $20 target. The continued bullish coverage supports investor sentiment.
• Neutral Sentiment: Reformation’s earnings call provided additional detail on its growth strategy and outlook as a newly public company. Execution of the store expansion plan and sustained demand will remain key factors for valuation.
• Negative Sentiment: Short interest climbed 150.2% between August 15 and August 31 to 2.2 million shares, or about 3.7% of shares outstanding. Elevated bearish positioning could create volatility and signals that some investors remain cautious despite the strong results.

Reformation Company Profile

Reformation, Inc is a fashion company that designs and sells women’s clothing, footwear and accessories under the Reformation brand. Its product range includes dresses, tops, denim, knitwear, outerwear, swimwear, bridal apparel and related accessories, with collections marketed around contemporary style and more sustainable production practices.

The company sells its products through its e-commerce platform and a network of retail stores, serving customers in the United States and select international markets.