Zacks Research Downgrades Torrid (NYSE:CURV) to Strong Sell

Torrid (NYSE:CURV) was downgraded by stock analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a report issued on Thursday,Zacks.com reports.

Other analysts also recently issued reports about the company. Weiss Ratings restated a “sell (d)” rating on shares of Torrid in a research report on Wednesday, October 8th. Morgan Stanley restated an “underweight” rating and issued a $1.01 price target on shares of Torrid in a research note on Thursday, December 4th. The Goldman Sachs Group dropped their price objective on shares of Torrid from $1.50 to $0.75 and set a “sell” rating for the company in a research note on Friday, December 5th. Wall Street Zen downgraded shares of Torrid from a “hold” rating to a “sell” rating in a report on Saturday, December 6th. Finally, Bank of America lowered their target price on Torrid from $6.00 to $2.00 and set a “buy” rating for the company in a report on Thursday, December 4th. One equities research analyst has rated the stock with a Buy rating, three have issued a Hold rating and four have given a Sell rating to the company’s stock. Based on data from MarketBeat, Torrid presently has a consensus rating of “Reduce” and an average target price of $1.44.

Torrid Trading Down 2.7%

Shares of NYSE:CURV opened at $1.08 on Thursday. The firm has a 50 day moving average of $1.26 and a 200-day moving average of $2.23. Torrid has a 12 month low of $0.94 and a 12 month high of $7.19. The stock has a market capitalization of $107.14 million, a PE ratio of -108.00 and a beta of 1.47.

Torrid (NYSE:CURV) last announced its quarterly earnings data on Wednesday, December 3rd. The company reported ($0.06) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.01) by ($0.05). Torrid had a negative net margin of 0.18% and a negative return on equity of 1.69%. The firm had revenue of $235.15 million during the quarter, compared to the consensus estimate of $239.90 million. During the same period last year, the business earned ($0.01) earnings per share. On average, research analysts predict that Torrid will post 0.14 EPS for the current fiscal year.

Insider Buying and Selling at Torrid

In other Torrid news, major shareholder Fund 1 Investments, Llc sold 25,000 shares of the stock in a transaction that occurred on Wednesday, December 3rd. The stock was sold at an average price of $1.31, for a total value of $32,750.00. Following the transaction, the insider owned 9,904,856 shares in the company, valued at approximately $12,975,361.36. This represents a 0.25% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CFO Paula Dempsey sold 26,000 shares of Torrid stock in a transaction on Tuesday, September 23rd. The shares were sold at an average price of $1.76, for a total transaction of $45,760.00. Following the completion of the sale, the chief financial officer directly owned 145,361 shares of the company’s stock, valued at approximately $255,835.36. The trade was a 15.17% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 67,959 shares of company stock valued at $108,697. 5.85% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Torrid

Several institutional investors have recently bought and sold shares of CURV. Nomura Holdings Inc. raised its holdings in shares of Torrid by 94.8% in the third quarter. Nomura Holdings Inc. now owns 6,233,022 shares of the company’s stock valued at $10,908,000 after purchasing an additional 3,034,083 shares during the last quarter. Bank of America Corp DE increased its position in shares of Torrid by 191.1% during the 2nd quarter. Bank of America Corp DE now owns 1,917,793 shares of the company’s stock valued at $5,657,000 after purchasing an additional 1,258,934 shares during the last quarter. Fund 1 Investments LLC grew its position in Torrid by 12.4% during the second quarter. Fund 1 Investments LLC now owns 10,433,112 shares of the company’s stock valued at $30,778,000 after buying an additional 1,150,726 shares during the period. Jacobs Levy Equity Management Inc. purchased a new position in Torrid in the third quarter valued at about $1,453,000. Finally, Millennium Management LLC bought a new stake in shares of Torrid in the 3rd quarter worth approximately $669,000. Institutional investors own 81.82% of the company’s stock.

About Torrid

Torrid, trading under the ticker CURV on the New York Stock Exchange, is a specialty retailer focused on plus-size women’s fashion. Established in 2001 as a division of Hot Topic, Torrid has built its reputation on offering trend-driven apparel and accessories designed specifically for women who wear size 10 to 30. The company’s product assortment spans casual wear, denim, activewear, intimates, footwear, and fashion‐forward accessories, catering to a demographic that has historically been underserved by mainstream retailers.

Over the years, Torrid has expanded from its early mall‐based store footprint to become a multichannel business.