ThredUp (NASDAQ:TDUP) Announces Quarterly Earnings Results, Meets Estimates

Key Points

• Q1 results: ThredUp reported a ($0.05) EPS that met estimates
• Stock and insider activity: Shares fell about 2.5% to $4.37 on higher-than-average volume (3.52M), while insiders were active—Director Patricia Nakache bought 13,157 shares at $3.73 and COO Christopher Homer sold 69,741 shares at $3.82.
• Analyst outlook: Broker views are mixed but the consensus is a "Moderate Buy" with a target price of $9.90, as firms like Cowen raised their target while others trimmed theirs and Weiss maintained a sell.

ThredUp (NASDAQ:TDUP - Get Free Report) issued its quarterly earnings results on Monday. The company reported ($0.05) EPS for the quarter, hitting the consensus estimate of ($0.05), FiscalAI reports. ThredUp had a negative net margin of 6.50% and a negative return on equity of 34.48%. The firm had revenue of $81.67 million during the quarter, compared to analyst estimates of $80.17 million.

ThredUp Trading Down 2.5%

Shares of ThredUp stock traded down $0.11 during trading hours on Monday, hitting $4.37. The company's stock had a trading volume of 3,523,366 shares, compared to its average volume of 2,293,647. ThredUp has a 1-year low of $3.08 and a 1-year high of $12.28. The business has a fifty day moving average of $3.91 and a 200 day moving average of $5.83. The company has a market capitalization of $555.16 million, a PE ratio of -29.13 and a beta of 2.07. The company has a quick ratio of 0.91, a current ratio of 0.91 and a debt-to-equity ratio of 0.24.

Insider Transactions at ThredUp

In other ThredUp news, Director Patricia Nakache acquired 13,157 shares of the company's stock in a transaction dated 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 completion of the transaction, the director directly owned 14,017 shares of the company's stock, valued at approximately $52,283.41. The trade was a 1,529.88% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, COO Christopher Homer sold 69,741 shares of the stock in a transaction 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 sale, the chief operating officer directly owned 1,274,906 shares of the company's stock, valued at $4,870,140.92. The trade was a 5.19% decrease in their position. The disclosure for this sale is available in the SEC filing. Company insiders own 23.10% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in TDUP. Raymond James Financial Inc. purchased a new position in shares of ThredUp in the second quarter valued at $32,000. Quarry LP purchased a new position in shares of ThredUp in the third quarter valued at $37,000. Meeder Asset Management Inc. boosted its stake in shares of ThredUp by 552.9% in the fourth quarter. Meeder Asset Management Inc. now owns 6,405 shares of the company's stock valued at $41,000 after purchasing an additional 5,424 shares during the period. Tower Research Capital LLC TRC boosted its stake in shares of ThredUp by 110.1% in the second quarter. Tower Research Capital LLC TRC now owns 10,959 shares of the company's stock valued at $82,000 after purchasing an additional 5,744 shares during the period. Finally, nVerses Capital LLC purchased a new position in shares of ThredUp in the fourth quarter valued at $83,000. 89.08% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several brokerages recently commented on TDUP. TD Cowen upped their price target on shares of ThredUp from $5.00 to $5.50 and gave the stock a "buy" rating in a research report on Wednesday, April 29th. Telsey Advisory Group dropped their price target on shares of ThredUp from $12.00 to $9.00 and set an "outperform" rating for the company in a research report on Tuesday, March 3rd. Weiss Ratings reaffirmed a "sell (e+)" rating on shares of ThredUp in a research report on Friday, March 27th. Finally, Wells Fargo & Company dropped their price target on shares of ThredUp from $13.00 to $10.00 and set an "overweight" rating for the company in a research report on Tuesday, March 3rd. Two equities research analysts have rated the stock with a Strong Buy rating, three have assigned a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $9.90.

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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