Zweig DiMenna Associates LLC Grows Position in ThredUp Inc. $TDUP

Key Points

• Zweig DiMenna Associates LLC boosted its ThredUp stake by 170.1% in the first quarter, buying 916,000 additional shares and ending with 1,454,500 shares valued at about $4.77 million.
• ThredUp reported Q1 EPS of -$0.05, matching analyst expectations, while revenue of $81.67 million came in slightly above estimates. The company remains unprofitable, with a negative net margin and return on equity.
• Wall Street sentiment is mixed but generally positive, with an average rating of Moderate Buy and a consensus target price of $9.14. Meanwhile, top executives sold shares in June, though the sales were tied to tax withholding on equity awards.

Zweig DiMenna Associates LLC increased its holdings in ThredUp Inc. (NASDAQ:TDUP - Free Report) by 170.1% in the 1st quarter, according to its most recent filing with the SEC. The institutional investor owned 1,454,500 shares of the company's stock after buying an additional 916,000 shares during the quarter. Zweig DiMenna Associates LLC owned about 1.14% of ThredUp worth $4,771,000 at the end of the most recent reporting period.

A number of other hedge funds have also bought and sold shares of TDUP. MYDA Advisors LLC purchased a new stake in shares of ThredUp during the 4th quarter valued at about $2,173,000. Penn Capital Management Company LLC purchased a new position in shares of ThredUp during the fourth quarter valued at approximately $1,567,000. Needham Investment Management LLC raised its holdings in shares of ThredUp by 7.0% during the fourth quarter. Needham Investment Management LLC now owns 6,075,000 shares of the company's stock valued at $38,819,000 after purchasing an additional 400,000 shares during the last quarter. BloombergSen Inc. lifted its position in ThredUp by 44.7% during the fourth quarter. BloombergSen Inc. now owns 1,274,289 shares of the company's stock valued at $8,143,000 after purchasing an additional 393,385 shares during the period. Finally, Tudor Investment Corp ET AL lifted its position in ThredUp by 42.9% during the third quarter. Tudor Investment Corp ET AL now owns 658,271 shares of the company's stock valued at $6,221,000 after purchasing an additional 197,512 shares during the period. Hedge funds and other institutional investors own 89.08% of the company's stock.

ThredUp Stock Performance

TDUP opened at $6.34 on Wednesday. The company's 50 day moving average is $5.38 and its 200 day moving average is $4.88. The company has a current ratio of 0.95, a quick ratio of 0.95 and a debt-to-equity ratio of 0.30. The company has a market cap of $818.11 million, a price-to-earnings ratio of -39.62 and a beta of 1.97. ThredUp Inc. has a 12-month low of $3.08 and a 12-month high of $12.28.

ThredUp (NASDAQ:TDUP - Get Free Report) last announced its earnings results on Monday, May 4th. The company reported ($0.05) EPS for the quarter, meeting analysts' consensus estimates of ($0.05). ThredUp had a negative net margin of 6.68% and a negative return on equity of 36.11%. The business had revenue of $81.67 million during the quarter, compared to analysts' expectations of $80.17 million. On average, equities research analysts predict that ThredUp Inc. will post -0.09 EPS for the current year.

Wall Street Analysts Forecast Growth

A number of equities research analysts have commented on TDUP shares. Telsey Advisory Group cut their target price on shares of ThredUp from $9.00 to $7.00 and set an "outperform" rating for the company in a research report on Tuesday, May 5th. Wells Fargo & Company dropped their price target 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 lifted their price objective on ThredUp from $5.00 to $5.70 and gave the stock a "buy" rating in a report on Tuesday, May 5th. Finally, Weiss Ratings reiterated a "sell (e+)" rating on shares of ThredUp in a research report on Wednesday, June 24th. Two investment analysts have rated the stock with a Strong Buy rating, three have assigned a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $9.14.

Insiders Place Their Bets

In related news, COO Christopher Homer sold 61,578 shares of the firm's stock in a transaction on Tuesday, June 2nd. The stock was sold at an average price of $4.43, for a total value of $272,790.54. Following the transaction, 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. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Sean Sobers sold 45,554 shares of ThredUp stock in a transaction 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 transaction, the chief financial officer owned 572,523 shares in the company, valued at $2,536,276.89. This trade represents a 7.37% 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. Insiders own 23.10% of the company's stock.

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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