TD Cowen Increases ThredUp (NASDAQ:TDUP) Price Target to $5.50

Key Points

• TD Cowen raised its price target on ThredUp to $5.50 (from $5.00) and maintains a "buy" rating, implying roughly a 29.87% upside from the prior close.
• Analyst coverage is mixed: the MarketBeat consensus is a "Moderate Buy" with an average target of $9.90, while recent notes include lowered targets from Telsey and Wells Fargo and a "sell (e+)" from Weiss Ratings.
• Fundamentals show ThredUp trading at $4.24 with a $538M market cap, revenue slightly above expectations but negative EPS/margins, notable insider activity (CFO sold shares; a director bought), and roughly 89% institutional ownership.

ThredUp (NASDAQ:TDUP - Get Free Report) had its target price raised by equities researchers at TD Cowen from $5.00 to $5.50 in a note issued to investors on Wednesday,Benzinga reports. The firm presently has a "buy" rating on the stock. TD Cowen's target price points to a potential upside of 29.87% from the stock's previous close.

TDUP has been the subject of a number of other research reports. Telsey Advisory Group cut their target price on shares of ThredUp from $12.00 to $9.00 and set an "outperform" rating for the company in a research note on Tuesday, March 3rd. Wells Fargo & Company cut their target price on shares of ThredUp from $13.00 to $10.00 and set an "overweight" rating for the company in a research note on Tuesday, March 3rd. Finally, Weiss Ratings reiterated a "sell (e+)" rating on shares of ThredUp in a research note on Friday, March 27th. Two analysts have rated the stock with a Strong Buy rating, three have given a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $9.90.

ThredUp Price Performance

NASDAQ TDUP traded up $0.05 during trading on Wednesday, reaching $4.24. 1,219,379 shares of the company traded hands, compared to its average volume of 2,270,109. The company has a debt-to-equity ratio of 0.24, a quick ratio of 0.91 and a current ratio of 0.91. The stock's 50 day moving average price is $3.93 and its two-hundred day moving average price is $5.90. The company has a market cap of $538.01 million, a price-to-earnings ratio of -28.16 and a beta of 1.85. ThredUp has a 1-year low of $3.08 and a 1-year high of $12.28.

ThredUp (NASDAQ:TDUP - Get Free Report) last posted its earnings results on Monday, March 2nd. The company reported ($0.04) earnings per share (EPS) for the quarter, meeting analysts' consensus estimates of ($0.04). ThredUp had a negative net margin of 6.50% and a negative return on equity of 34.48%. The company had revenue of $79.70 million during the quarter, compared to analysts' expectations of $77.17 million. As a group, analysts anticipate that ThredUp will post -0.11 EPS for the current year.

Insider Buying and Selling

In related news, CFO Sean Sobers sold 56,504 shares of the business's stock in a transaction that occurred on Tuesday, March 3rd. The shares were sold at an average price of $3.82, for a total value of $215,845.28. Following the completion of the transaction, the chief financial officer owned 555,254 shares in the company, valued at $2,121,070.28. The trade was a 9.24% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director Patricia Nakache acquired 13,157 shares of the company's stock in a transaction that occurred on Tuesday, March 10th. The stock was bought at an average price of $3.73 per share, with a total value of $49,075.61. Following the transaction, the director directly owned 14,017 shares in the company, valued at $52,283.41. The trade was a 1,529.88% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. 23.10% of the stock is currently owned by corporate insiders.

Institutional Trading of ThredUp

Institutional investors have recently bought and sold shares of the business. BloombergSen Inc. grew its holdings in ThredUp by 36.9% during the 3rd quarter. BloombergSen Inc. now owns 880,904 shares of the company's stock worth $8,325,000 after acquiring an additional 237,620 shares during the period. Divisadero Street Capital Management LP acquired a new stake in ThredUp during the 3rd quarter worth $9,396,000. Vanguard Group Inc. grew its holdings in ThredUp by 6.1% during the 3rd quarter. Vanguard Group Inc. now owns 6,914,427 shares of the company's stock worth $65,341,000 after acquiring an additional 398,865 shares during the period. Landscape Capital Management L.L.C. acquired a new stake in ThredUp during the 3rd quarter worth $7,389,000. Finally, Tudor Investment Corp ET AL grew its holdings in ThredUp by 42.9% during the 3rd quarter. Tudor Investment Corp ET AL now owns 658,271 shares of the company's stock worth $6,221,000 after acquiring an additional 197,512 shares during the period. Institutional investors and hedge funds own 89.08% of the company's stock.

About ThredUp

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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