ThredUp Inc. (NASDAQ:TDUP) Stock Has Average Price Target of $4.64 According to Brokerages

Key Points

• Analysts rate ThredUp a “Moderate Buy” overall: Seven firms set an average 12-month price target of $4.64, though recent calls were mixed, including downgrades and Wells Fargo cutting its target to $3 from $8.
• The stock has fallen sharply: Shares opened at $1.28, matching their one-year low, versus a one-year high of $8.76.
• Latest quarterly results slightly beat estimates: ThredUp reported a loss of $0.04 per share versus expectations of a $0.05 loss, while revenue of $88.23 million topped estimates of $88.05 million.

ThredUp Inc. (NASDAQ:TDUP - Get Free Report) has been assigned a consensus rating of "Moderate Buy" from the seven research firms that are presently covering the company, Marketbeat.com reports. One equities research analyst has rated the stock with a sell rating, two have issued a hold rating, three have issued a buy rating and one has given a strong buy rating to the company. The average 12 month price target among brokers that have issued ratings on the stock in the last year is $4.64.

Several equities analysts have weighed in on TDUP shares. Roth Capital restated a "buy" rating and set a $6.50 target price on shares of ThredUp in a report on Thursday, August 6th. Weiss Ratings raised ThredUp from a "sell (e+)" rating to a "sell (d-)" rating in a research note on Tuesday, November 3rd. Northland Securities downgraded ThredUp from an "outperform" rating to a "market perform" rating and set a $2.00 price objective on the stock. in a research note on Thursday. William Blair downgraded shares of ThredUp from an "outperform" rating to a "market perform" rating in a report on Thursday. Finally, Wells Fargo & Company lowered their target price on shares of ThredUp from $8.00 to $3.00 and set an "overweight" rating on the stock in a research note on Thursday.

ThredUp Stock Performance

Shares of NASDAQ TDUP opened at $1.28 on Monday. The business's 50-day moving average price is $2.30 and its two-hundred day moving average price is $4.07. ThredUp has a one year low of $1.28 and a one year high of $8.76. The company has a market capitalization of $168.76 million, a P/E ratio of -7.14 and a beta of 2.18. The company has a debt-to-equity ratio of 0.29, a current ratio of 1.05 and a quick ratio of 1.05.

ThredUp (NASDAQ:TDUP - Get Free Report) last issued its quarterly earnings data on Wednesday, November 4th. The company reported ($0.04) earnings per share for the quarter, beating the consensus estimate of ($0.05) by $0.01. The firm had revenue of $88.23 million for the quarter, compared to analyst estimates of $88.05 million. ThredUp had a negative net margin of 6.89% and a negative return on equity of 39.12%. Analysts anticipate that ThredUp will post -0.17 earnings per share for the current fiscal year.

Insider Transactions at ThredUp

In other ThredUp news, COO Christopher Homer sold 60,230 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 transaction of $155,393.40. Following the completion of the sale, the chief operating officer directly owned 1,363,358 shares in the company, valued at $3,517,463.64. This represents a 4.23% decrease in their ownership of the stock. The transaction was disclosed in a legal filing 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, CFO Sean Sobers sold 44,559 shares of the firm'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 completion of the sale, the chief financial officer directly owned 613,503 shares in the company, valued at approximately $1,582,837.74. This represents a 6.77% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 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.

Hedge Funds Weigh In On ThredUp

Institutional investors and hedge funds have recently bought and sold shares of the stock. Readystate Asset Management LP lifted its position 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 worth $10,335,000 after acquiring an additional 1,001,482 shares during the period. Arrowstreet Capital Limited Partnership grew its holdings in shares of ThredUp by 19.0% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 2,965,484 shares of the company's stock worth $9,727,000 after purchasing an additional 473,907 shares in the last quarter. CI Investments Inc. bought a new stake in shares of ThredUp during the first quarter valued at approximately $5,937,000. Zweig DiMenna Associates LLC raised its stake in shares of ThredUp by 170.1% in the first quarter. Zweig DiMenna Associates LLC now owns 1,454,500 shares of the company's stock valued at $4,771,000 after purchasing an additional 916,000 shares in the last quarter. Finally, ProShare Advisors LLC raised 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 purchasing an additional 726,762 shares in the last quarter. Institutional investors own 89.08% of the company's stock.

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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