ThredUp (NASDAQ:TDUP) Stock Price Target Lowered at Wells Fargo & Company

Key Points

• Wells Fargo cut its ThredUp price target to $3 from $8 but maintained an “overweight” rating; the new target implies about 37% upside from the stock’s current price.
• Analyst sentiment is mixed but leans positive: MarketBeat’s consensus rating is “Moderate Buy,” with an average price target of $4.64.
• ThredUp slightly beat quarterly EPS expectations, reporting a loss of $0.04 per share versus the expected $0.05 loss; revenue of $88.23 million was also just above estimates.

ThredUp (NASDAQ:TDUP - Get Free Report) had its price objective dropped by investment analysts at Wells Fargo & Company from $8.00 to $3.00 in a research note issued to investors on Thursday, Benzinga reports. The brokerage presently has an "overweight" rating on the stock. Wells Fargo & Company's price target suggests a potential upside of 36.99% from the stock's current price.

Several other equities research analysts also recently commented on TDUP. TD Cowen began coverage on ThredUp in a report on Friday, October 30th. They issued a "strong-buy" rating on the stock. Roth Capital restated a "buy" rating and set a $6.50 price target on shares of ThredUp in a report on Thursday, August 6th. Telsey Advisory Group lowered their price target on ThredUp from $7.00 to $6.00 and set an "outperform" rating for the company in a research report on Thursday, August 6th. Northland Securities cut shares of ThredUp from an "outperform" rating to a "market perform" rating and set a $2.00 price target on the stock. in a research note on Thursday. Finally, William Blair downgraded shares of ThredUp from an "outperform" rating to a "market perform" rating in a research report on Thursday. 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 issued a Sell rating to the stock. Based on data from MarketBeat, ThredUp presently has a consensus rating of "Moderate Buy" and a consensus price target of $4.64.

ThredUp Stock Performance

NASDAQ TDUP opened at $2.19 on Thursday. ThredUp has a 1 year low of $1.91 and a 1 year high of $8.76. The company has a debt-to-equity ratio of 0.29, a current ratio of 0.99 and a quick ratio of 0.99. The stock has a market capitalization of $287.61 million, a PE ratio of -12.88 and a beta of 2.18. The company's 50 day simple moving average is $2.36 and its two-hundred day simple moving average is $4.11.

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

Insider Activity

In other ThredUp news, CFO Sean Sobers sold 44,559 shares of ThredUp stock in a transaction dated Wednesday, September 2nd. The stock was 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 in the company, valued at $1,582,837.74. The trade was a 6.77% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 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 that occurred 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 transaction, 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 ownership of the stock. 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 owned by corporate insiders.

Institutional Investors Weigh In On ThredUp

A number of large investors have recently made changes to their positions in the stock. CI Investments Inc. purchased a new stake in ThredUp during the 1st quarter worth about $5,937,000. Readystate Asset Management LP grew its stake in shares of ThredUp by 197.4% in the 2nd quarter. Readystate Asset Management LP now owns 1,508,736 shares of the company's stock valued at $10,335,000 after purchasing an additional 1,001,482 shares during the last quarter. Zweig DiMenna Associates LLC increased its stake in shares of ThredUp by 170.1% during the first quarter. Zweig DiMenna Associates LLC now owns 1,454,500 shares of the company's stock worth $4,771,000 after acquiring an additional 916,000 shares during the period. ProShare Advisors LLC lifted its holdings 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 period. Finally, Arrowstreet Capital Limited Partnership increased its holdings in 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 buying an additional 473,907 shares in the last quarter. 89.08% of the stock is currently owned by hedge funds and other institutional investors.

About ThredUp

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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