ThredUp Inc. (NASDAQ:TDUP) Receives Average Recommendation of "Moderate Buy" from Brokerages

Key Points

• Analysts maintain a “Moderate Buy” consensus on ThredUp, with four buy ratings, one hold and one sell among six brokerages. The average 12-month price target is $6.55.
• ThredUp reported a quarterly loss of $0.05 per share, missing the $0.03 loss expected by analysts, while revenue of $90.77 million slightly exceeded estimates. Shares opened at $2.76, near their 12-month low of $2.69.
• Executives sold shares to cover tax obligations tied to vested equity awards, while institutional investors and hedge funds own 89.08% of the company.

Shares of ThredUp Inc. (NASDAQ:TDUP - Get Free Report) have been given a consensus recommendation of "Moderate Buy" by the six brokerages that are presently covering the stock, MarketBeat Ratings reports. One research analyst has rated the stock with a sell rating, one has given a hold rating and four have issued a buy rating on the company. The average 1-year target price among brokerages that have covered the stock in the last year is $6.55.

A number of equities analysts have commented on the company. Wells Fargo & Company lowered their price objective on ThredUp from $10.00 to $8.00 and set an "overweight" rating on the stock in a research note on Tuesday, May 5th. TD Cowen upped their target price on ThredUp from $5.00 to $5.70 and gave the company a "buy" rating in a research report on Tuesday, May 5th. Telsey Advisory Group reduced their target price on ThredUp from $7.00 to $6.00 and set an "outperform" rating on the stock in a report on Thursday, August 6th. Roth Capital restated a "buy" rating and issued a $6.50 price target on shares of ThredUp in a research report on Thursday, August 6th. Finally, Weiss Ratings reaffirmed a "sell (e+)" rating on shares of ThredUp in a research note on Wednesday, June 24th.

ThredUp Stock Performance

Shares of NASDAQ:TDUP opened at $2.76 on Wednesday. ThredUp has a 12-month low of $2.69 and a 12-month high of $12.15. The company's 50 day moving average price is $5.41 and its two-hundred day moving average price is $4.66. The firm has a market cap of $362.47 million, a PE ratio of -16.23 and a beta of 2.01. The company has a quick ratio of 0.99, a current ratio of 0.99 and a debt-to-equity ratio of 0.29.

ThredUp (NASDAQ:TDUP - Get Free Report) last released its quarterly earnings results on Wednesday, August 5th. The company reported ($0.05) earnings per share for the quarter, missing analysts' consensus estimates of ($0.03) by ($0.02). The business had revenue of $90.77 million during the quarter, compared to analyst estimates of $90.34 million. ThredUp had a negative net margin of 6.65% and a negative return on equity of 37.30%. Equities research analysts predict that ThredUp will post -0.17 earnings per share for the current year.

Insider Transactions at ThredUp

In other news, 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 value of $201,804.22. Following the completion of the transaction, the chief financial officer directly owned 572,523 shares in the company, valued at approximately $2,536,276.89. The trade was a 7.37% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, COO Christopher Homer sold 61,578 shares of the company's stock in a transaction that occurred on Tuesday, June 2nd. The stock was sold at an average price of $4.43, for a total transaction of $272,790.54. Following the sale, the chief operating officer directly owned 1,301,843 shares of the company's stock, valued at approximately $5,767,164.49. This trade represents a 4.52% 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. Corporate insiders own 23.10% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in TDUP. Raymond James Financial Inc. bought a new stake in ThredUp during the second quarter worth $32,000. R Squared Ltd bought a new position in shares of ThredUp in the 1st quarter valued at $34,000. Quarry LP acquired a new position in shares of ThredUp during the 3rd quarter worth $37,000. Abel Hall LLC acquired a new position in shares of ThredUp during the 1st quarter worth $39,000. Finally, Meeder Asset Management Inc. lifted its position in shares of ThredUp by 552.9% during the 4th quarter. Meeder Asset Management Inc. now owns 6,405 shares of the company's stock worth $41,000 after buying an additional 5,424 shares during the last quarter. 89.08% of the stock is currently owned by institutional investors and hedge funds.

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.

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