ThredUp (NASDAQ:TDUP) Stock Price Down 7.1% – Time to Sell?

ThredUp Inc. (NASDAQ:TDUP)’s stock price fell 7.1% during mid-day trading on Wednesday . The stock traded as low as $6.02 and last traded at $5.9740. 607,995 shares were traded during mid-day trading, a decline of 73% from the average daily volume of 2,226,186 shares. The stock had previously closed at $6.43.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently weighed in on the company. Weiss Ratings reissued a “sell (e+)” rating on shares of ThredUp in a research report on Wednesday, June 24th. TD Cowen increased their target price on shares of ThredUp from $5.00 to $5.70 and gave the company a “buy” rating in a research note on Tuesday, May 5th. Wells Fargo & Company cut their target price on ThredUp from $10.00 to $8.00 and set an “overweight” rating for the company in a research note on Tuesday, May 5th. Finally, Telsey Advisory Group lowered their price objective on ThredUp from $9.00 to $7.00 and set an “outperform” rating on the stock in a research note on Tuesday, May 5th. One investment analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus price target of $9.14.

ThredUp Stock Down 5.0%

The firm’s 50-day simple moving average is $5.63 and its two-hundred day simple moving average is $4.89. The stock has a market cap of $740.69 million, a price-to-earnings ratio of -35.88 and a beta of 1.97. The company has a debt-to-equity ratio of 0.30, a quick ratio of 0.95 and a current ratio of 0.95.

ThredUp (NASDAQ:TDUP) last announced its quarterly earnings data on Monday, May 4th. The company reported ($0.05) EPS for the quarter, meeting analysts’ consensus estimates of ($0.05). The firm had revenue of $81.67 million for the quarter, compared to analyst estimates of $80.17 million. ThredUp had a negative return on equity of 36.11% and a negative net margin of 6.68%. On average, sell-side analysts expect that ThredUp Inc. will post -0.09 EPS for the current fiscal year.

Insider Transactions at ThredUp

In other ThredUp news, COO Christopher Homer sold 61,578 shares of the firm’s stock in a transaction dated Tuesday, June 2nd. The stock was sold at an average price of $4.43, for a total transaction of $272,790.54. Following the transaction, the chief operating officer owned 1,301,843 shares in the company, valued at approximately $5,767,164.49. This trade represents a 4.52% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Sean Sobers sold 45,554 shares of the business’s stock in a transaction that occurred on Tuesday, June 2nd. The shares were sold at an average price of $4.43, for a total transaction of $201,804.22. Following the transaction, the chief financial officer owned 572,523 shares of the company’s stock, valued at approximately $2,536,276.89. This represents a 7.37% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Corporate insiders own 23.10% of the company’s stock.

Institutional Trading of ThredUp

Several hedge funds and other institutional investors have recently modified their holdings of the company. Bank of America Corp DE lifted its stake in ThredUp by 47.9% in the 1st quarter. Bank of America Corp DE now owns 345,353 shares of the company’s stock valued at $1,133,000 after acquiring an additional 111,829 shares in the last quarter. Amundi bought a new position in shares of ThredUp in the 1st quarter valued at about $90,000. Royal Bank of Canada grew its holdings in shares of ThredUp by 50.2% in the 1st quarter. Royal Bank of Canada now owns 101,062 shares of the company’s stock valued at $331,000 after acquiring an additional 33,781 shares in the last quarter. Empowered Funds LLC acquired a new stake in shares of ThredUp in the first quarter valued at about $1,338,000. Finally, Arrowstreet Capital Limited Partnership increased its position in shares of ThredUp by 19.0% in the first quarter. Arrowstreet Capital Limited Partnership now owns 2,965,484 shares of the company’s stock valued at $9,727,000 after acquiring an additional 473,907 shares during the last quarter. Institutional investors and hedge funds own 89.08% of the company’s stock.

ThredUp Company Profile

ThredUp, Inc operates an online consignment and thrift platform that enables consumers to buy and sell secondhand clothing and accessories. Through its digital marketplace, the company offers curated selections of apparel for women and children, spanning a broad range of brands and styles. Sellers can order a “Clean Out Kit” to send in items they no longer wear, while buyers benefit from discounted prices and a simplified shopping experience powered by ThredUp’s in-house authentication, quality control and logistics capabilities.

In addition to its core consumer-to-consumer marketplace, ThredUp has expanded into business-to-business services with its Resale-as-a-Service (RaaS) offering.