Morgan Stanley Has Lowered Expectations for Torrid (NYSE:CURV) Stock Price

Key Points

• Morgan Stanley has lowered its target price for Torrid's stock from $2.00 to $1.60, indicating a potential downside of 13.28% from the company's previous close.
• Analysts from various firms have provided mixed ratings on Torrid, with one analyst rating it as a Buy, while others have assigned Hold or Sell ratings, resulting in an average rating of "Reduce" and a target price of $3.09.
• Despite a revenue of $262.81 million in the last quarter, Torrid reported an EPS of $0.02, missing analysts' expectations, and has set FY 2025 guidance at EPS.

Torrid (NYSE:CURV - Get Free Report) had its price objective reduced by stock analysts at Morgan Stanley from $2.00 to $1.60 in a research note issued on Thursday, MarketBeat reports. The brokerage currently has an "underweight" rating on the stock. Morgan Stanley's price objective suggests a potential downside of 12.81% from the company's current price.

CURV has been the topic of several other reports. Wall Street Zen raised shares of Torrid from a "sell" rating to a "hold" rating in a research report on Sunday, September 14th. Bank of America cut their price target on shares of Torrid from $7.00 to $6.00 and set a "buy" rating on the stock in a research report on Friday, September 5th. Telsey Advisory Group cut their price target on shares of Torrid from $6.00 to $3.00 and set a "market perform" rating on the stock in a research report on Thursday, August 28th. BTIG Research reaffirmed a "neutral" rating on shares of Torrid in a report on Friday, September 5th. Finally, The Goldman Sachs Group dropped their target price on shares of Torrid from $2.25 to $1.75 and set a "sell" rating on the stock in a report on Monday, September 8th. One research analyst has rated the stock with a Buy rating, two have assigned a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of "Reduce" and an average target price of $3.09.

Torrid Price Performance

Shares of NYSE CURV traded down $0.04 during midday trading on Thursday, reaching $1.84. 1,574,466 shares of the stock were exchanged, compared to its average volume of 1,030,726. The business has a 50-day simple moving average of $2.28 and a two-hundred day simple moving average of $4.09. The company has a market capitalization of $181.98 million, a price-to-earnings ratio of 45.89, a P/E/G ratio of 2.79 and a beta of 1.56. Torrid has a 12 month low of $1.62 and a 12 month high of $7.19.

Torrid (NYSE:CURV - Get Free Report) last announced its quarterly earnings results on Thursday, September 4th. The company reported $0.02 earnings per share for the quarter, missing analysts' consensus estimates of $0.04 by ($0.02). The firm had revenue of $262.81 million for the quarter, compared to the consensus estimate of $259.38 million. Torrid had a negative return on equity of 1.69% and a net margin of 0.30%.During the same period in the prior year, the business earned $0.08 earnings per share. Torrid has set its FY 2025 guidance at EPS. Q3 2025 guidance at EPS. Equities research analysts expect that Torrid will post 0.14 earnings per share for the current fiscal year.

Insider Buying and Selling at Torrid

In related news, major shareholder Sycamore Partners Torrid, L.L. sold 15,680,908 shares of the business's stock in a transaction dated Thursday, June 26th. The shares were sold at an average price of $3.32, for a total transaction of $52,060,614.56. Following the transaction, the insider owned 58,295,694 shares in the company, valued at $193,541,704.08. The trade was a 21.20% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, major shareholder Fund 1 Investments, Llc sold 257,833 shares of the business's stock in a transaction dated Wednesday, July 2nd. The shares were sold at an average price of $2.73, for a total transaction of $703,884.09. Following the transaction, the insider owned 10,064,856 shares in the company, valued at $27,477,056.88. This represents a 2.50% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 16,538,741 shares of company stock worth $54,611,499. 5.85% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the company. Northern Trust Corp raised its holdings in shares of Torrid by 38.7% during the fourth quarter. Northern Trust Corp now owns 189,580 shares of the company's stock valued at $992,000 after purchasing an additional 52,891 shares during the last quarter. Bank of America Corp DE raised its holdings in shares of Torrid by 4,794.2% during the fourth quarter. Bank of America Corp DE now owns 423,597 shares of the company's stock valued at $2,215,000 after purchasing an additional 414,942 shares during the last quarter. Nuveen LLC purchased a new position in shares of Torrid during the first quarter valued at approximately $221,000. Nomura Holdings Inc. raised its holdings in shares of Torrid by 19.5% during the first quarter. Nomura Holdings Inc. now owns 3,254,537 shares of the company's stock valued at $17,835,000 after purchasing an additional 531,713 shares during the last quarter. Finally, Rhumbline Advisers increased its holdings in Torrid by 27.1% during the first quarter. Rhumbline Advisers now owns 21,886 shares of the company's stock valued at $120,000 after buying an additional 4,673 shares during the last quarter. Institutional investors own 81.82% of the company's stock.

Torrid Company Profile

Torrid Holdings Inc operates in women's plus-size apparel and intimates market in North America. The company designs, develops, and merchandises its products under the Torrid, Torrid Curve, CURV, and Lovesick brand names. It is involved in the sale of tops, bottoms, dresses, denims, activewear, intimates, sleep wear, swim wear, and outerwear products; and non-apparel products comprising accessories, footwear, and beauty products.