ThredUp (NASDAQ:TDUP) Stock Dropped to "Market Perform" by Northland Securities

Key Points

• Northland Securities downgraded ThredUp from “outperform” to “market perform” and set a $2 price target, implying 8.68% downside from the prior close.
• Analyst views remain mixed: MarketBeat reports a consensus “Moderate Buy” rating and a $5.64 average target, alongside recent downgrades and bullish ratings from other firms.
• ThredUp slightly beat quarterly expectations, reporting a loss of $0.04 per share versus the $0.05 consensus estimate and revenue of $88.23 million versus $88.05 million expected.

ThredUp (NASDAQ:TDUP - Get Free Report) was downgraded by equities research analysts at Northland Securities from an "outperform" rating to a "market perform" rating in a research note issued to investors on Thursday, Briefing.com reports. They presently have a $2.00 price target on the stock. Northland Securities's target price points to a potential downside of 8.68% from the stock's previous close.

TDUP has been the topic of several other research reports. Roth Capital restated a "buy" rating and issued a $6.50 target price on shares of ThredUp in a research report on Thursday, August 6th. William Blair cut shares of ThredUp from an "outperform" rating to a "market perform" rating in a research report on Thursday. TD Cowen started coverage on shares of ThredUp in a research note on Friday, October 30th. They set a "strong-buy" rating on the stock. Telsey Advisory Group decreased their target price on shares of ThredUp from $7.00 to $6.00 and set an "outperform" rating on the stock in a report on Thursday, August 6th. Finally, Weiss Ratings raised shares of ThredUp from a "sell (e+)" rating to a "sell (d-)" rating in a research note on Tuesday. One investment analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $5.64.

ThredUp Price Performance

Shares of NASDAQ TDUP opened at $2.19 on Thursday. The company has a debt-to-equity ratio of 0.29, a quick ratio of 0.99 and a current ratio of 0.99. The firm has a fifty day moving average of $2.36 and a 200 day moving average of $4.11. The firm has a market cap of $287.61 million, a PE ratio of -12.88 and a beta of 2.18. ThredUp has a one year low of $1.91 and a one year high of $8.76.

ThredUp (NASDAQ:TDUP - Get Free Report) last released its quarterly earnings results on Wednesday, November 4th. The company reported ($0.04) earnings per share for the quarter, topping the consensus estimate of ($0.05) by $0.01. The firm had revenue of $88.23 million during the quarter, compared to the consensus estimate of $88.05 million. ThredUp had a negative net margin of 6.65% and a negative return on equity of 37.30%. As a group, research analysts predict that ThredUp will post -0.17 EPS for the current fiscal year.

Insider Activity

In other ThredUp news, CFO Sean Sobers sold 44,559 shares of the company's stock in a transaction dated Wednesday, September 2nd. The shares were sold at an average price of $2.58, for a total value of $114,962.22. Following the transaction, the chief financial officer owned 613,503 shares of the company's stock, valued at $1,582,837.74. This represents a 6.77% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, COO Christopher Homer sold 60,230 shares of the stock in a transaction dated Wednesday, September 2nd. The stock was sold at an average price of $2.58, for a total transaction of $155,393.40. Following the transaction, the chief operating officer directly owned 1,363,358 shares of the company's stock, valued at approximately $3,517,463.64. This trade represents a 4.23% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. 23.10% of the stock is currently owned by insiders.

Hedge Funds Weigh In On ThredUp

A number of hedge funds have recently made changes to their positions in the stock. ProShare Advisors LLC grew its stake in shares of ThredUp by 5,274.0% in the third quarter. ProShare Advisors LLC now owns 740,542 shares of the company's stock valued at $1,570,000 after buying an additional 726,762 shares in the last quarter. Vise Technologies Inc. purchased a new stake in shares of ThredUp in the 3rd quarter valued at $59,000. WINTON GROUP Ltd acquired a new position in ThredUp during the 2nd quarter worth about $320,000. Integrated Wealth Concepts LLC acquired a new position in ThredUp during the 2nd quarter worth about $86,000. Finally, IFP Advisors Inc boosted its holdings in ThredUp by 634.8% during the 2nd quarter. IFP Advisors Inc now owns 7,039 shares of the company's stock valued at $48,000 after acquiring an additional 6,081 shares during the period. Hedge funds and other institutional investors own 89.08% of the company's stock.

ThredUp Company Profile

ThredUp Inc operates an online resale platform for secondhand apparel, shoes and accessories. Through its marketplace, consumers can shop for pre-owned women's and children's clothing and related products, while individuals can send in unwanted items for resale through the company's “Clean Out” service.

ThredUp manages much of the resale process, including receiving, inspecting, photographing, pricing, listing and fulfilling merchandise. The company also provides resale-as-a-service solutions that enable brands and retailers to offer or support secondhand programs, helping them participate in the growing circular fashion market.

Founded in 2009, ThredUp initially focused on children's clothing before expanding into women's apparel and broader fashion categories.

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