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

Key Points

• Analyst consensus: Buy — Seven brokerages give ThredUp an average "Buy" rating (1 sell, 1 hold, 2 buy, 3 strong buy) with a mean 1‑year price target of $9.80, though recent reports show mixed moves (Wells Fargo and Telsey cut targets while TD Cowen upgraded to strong‑buy and Weiss kept a sell).
• Operating results and valuation — TDUP traded around $4.38, with a 12‑month range of $3.08–$12.28; the company reported Q results of ($0.04) EPS (meeting estimates) and $79.7M revenue, but remains unprofitable (net margin -6.5%, negative ROE) and analysts expect -$0.11 EPS for the year.
• Insider and institutional activity — Both the COO and CFO sold shares in early March (reducing their stakes), insiders still own 23.10% while institutional investors control ~89.08% of the stock, with several funds recently adding or increasing positions.

ThredUp Inc. (NASDAQ:TDUP - Get Free Report) has been assigned an average rating of "Buy" from the seven brokerages that are presently covering the company, MarketBeat.com reports. One research analyst has rated the stock with a sell recommendation, one has given a hold recommendation, two have assigned a buy recommendation and three have issued a strong buy recommendation on the company. The average 1 year price objective among brokerages that have issued ratings on the stock in the last year is $9.80.

Several research analysts recently issued reports on the company. Wells Fargo & Company cut their price objective on ThredUp from $13.00 to $10.00 and set an "overweight" rating for the company in a research report on Tuesday, March 3rd. Telsey Advisory Group cut their price objective on ThredUp from $12.00 to $9.00 and set an "outperform" rating for the company in a research report on Tuesday, March 3rd. TD Cowen upgraded ThredUp to a "strong-buy" rating in a research report on Tuesday, April 7th. Finally, Weiss Ratings restated a "sell (e+)" rating on shares of ThredUp in a research report on Friday, March 27th.

ThredUp Price Performance

TDUP stock opened at $4.38 on Thursday. The firm has a 50 day moving average of $3.96 and a 200-day moving average of $6.06. ThredUp has a 12-month low of $3.08 and a 12-month high of $12.28. The company has a current ratio of 0.91, a quick ratio of 0.91 and a debt-to-equity ratio of 0.24. The company has a market cap of $556.44 million, a price-to-earnings ratio of -29.20 and a beta of 1.85.

ThredUp (NASDAQ:TDUP - Get Free Report) last posted its quarterly 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 the consensus estimate of $77.17 million. As a group, equities analysts expect that ThredUp will post -0.11 EPS for the current fiscal year.

Insider Buying and Selling

In related news, COO Christopher Homer sold 69,741 shares of ThredUp stock in a transaction that occurred on Tuesday, March 3rd. The stock was sold at an average price of $3.82, for a total transaction of $266,410.62. Following the completion of the transaction, the chief operating officer directly owned 1,274,906 shares in the company, valued at $4,870,140.92. The trade was a 5.19% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CFO Sean Sobers sold 56,504 shares of ThredUp stock in a transaction that occurred on Tuesday, March 3rd. The stock was sold at an average price of $3.82, for a total value of $215,845.28. Following the transaction, the chief financial officer owned 555,254 shares of the company's stock, valued at $2,121,070.28. This represents a 9.24% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders own 23.10% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Woodson Capital Management LP purchased a new stake in ThredUp in the 4th quarter worth approximately $11,502,000. Arrowstreet Capital Limited Partnership grew its stake in ThredUp by 263.7% in the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 2,056,345 shares of the company's stock worth $19,432,000 after acquiring an additional 1,491,020 shares during the period. Invesco Ltd. grew its stake in ThredUp by 3,682.1% in the 2nd quarter. Invesco Ltd. now owns 1,135,351 shares of the company's stock worth $8,504,000 after acquiring an additional 1,105,332 shares during the period. Divisadero Street Capital Management LP purchased a new stake in ThredUp in the 3rd quarter worth approximately $9,396,000. Finally, Landscape Capital Management L.L.C. purchased a new stake in ThredUp in the 3rd quarter worth approximately $7,389,000. 89.08% of the stock is currently owned by institutional investors and hedge funds.

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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