ThredUp (NASDAQ:TDUP) Stock Moved Down to Sell by Wall Street Zen

Key Points

• Wall Street Zen downgraded ThredUp from “hold” to “sell.” Other analyst views are mixed, and MarketBeat reports a consensus “Moderate Buy” rating with a $4.64 price target.
• ThredUp shares opened at $1.28, matching their 52-week low, and were well below their 50-day and 200-day moving averages.
• The company modestly beat quarterly estimates, reporting a loss of $0.04 per share versus the $0.05 expected and revenue of $88.23 million versus $88.05 million.

ThredUp (NASDAQ:TDUP - Get Free Report) was downgraded by equities researchers at Wall Street Zen from a "hold" rating to a "sell" rating in a research note issued to investors on Saturday, Wall Street Zen reports.

Several other research firms have also recently weighed in on TDUP. Northland Securities cut shares of ThredUp from an "outperform" rating to a "market perform" rating and set a $2.00 price objective on the stock. in a research report on Thursday. Weiss Ratings upgraded shares of ThredUp from a "sell (e+)" rating to a "sell (d-)" rating in a research note on Tuesday. TD Cowen started coverage on shares of ThredUp in a research report on Friday, October 30th. They set a "strong-buy" rating for the company. Telsey Advisory Group lowered their price target on shares of ThredUp from $7.00 to $6.00 and set an "outperform" rating for the company in a report on Thursday, August 6th. Finally, Roth Capital reissued a "buy" rating and issued a $6.50 target price on shares of ThredUp in a report on Thursday, August 6th. One analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, ThredUp currently has an average rating of "Moderate Buy" and a consensus target price of $4.64.

ThredUp Stock Performance

NASDAQ TDUP opened at $1.28 on Friday. 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 company has a market cap of $168.76 million, a P/E ratio of -7.14 and a beta of 2.18. The business's 50 day moving average price is $2.30 and its 200-day moving average price is $4.07. ThredUp has a fifty-two week low of $1.28 and a fifty-two week high of $8.76.

ThredUp (NASDAQ:TDUP - Get Free Report) last announced its 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. ThredUp had a negative net margin of 6.65% and a negative return on equity of 37.30%. The company had revenue of $88.23 million during the quarter, compared to analyst estimates of $88.05 million. Sell-side analysts predict that ThredUp will post -0.17 earnings per share for the current year.

Insider Activity

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

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the company. Russell Investments Group Ltd. boosted its position in shares of ThredUp by 29.1% during the 3rd quarter. Russell Investments Group Ltd. now owns 42,737 shares of the company's stock valued at $91,000 after acquiring an additional 9,630 shares during the last quarter. ProShare Advisors LLC lifted its stake in 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 acquiring an additional 726,762 shares during the last quarter. Vise Technologies Inc. acquired a new position in shares of ThredUp in the 3rd quarter worth approximately $59,000. WINTON GROUP Ltd bought a new position in ThredUp during the second quarter worth about $320,000. Finally, Integrated Wealth Concepts LLC acquired a new position in shares of ThredUp during the 2nd quarter worth approximately $86,000. 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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