ThredUp (NASDAQ:TDUP) Price Target Cut to $7.00 by Analysts at Telsey Advisory Group

Key Points

• Telsey Advisory Group cut its price target on ThredUp from $9 to $7 while keeping an "outperform" rating, implying roughly 60% upside from the current price; the analyst consensus is a "Moderate Buy" with an average target near $9.50.
• Q1 showed operational improvement — revenue rose to $81.7M (+15% YoY), active buyers hit a record 1.71M (+25%), gross margins improved, and management raised its full‑year 2026 outlook.
• Profitability and cash runway remain concerns: the company is still unprofitable (negative net margin ~6.5% and negative ROE), has modest cash (~$54M), and trades with a sub-$1B market cap, limiting upside until results turn sustainably positive.

ThredUp (NASDAQ:TDUP - Get Free Report) had its target price lowered by analysts at Telsey Advisory Group from $9.00 to $7.00 in a report issued on Tuesday. The firm currently has an "outperform" rating on the stock. Telsey Advisory Group's target price points to a potential upside of 60.18% from the company's current price.

Other research analysts also recently issued research reports about the stock. Wells Fargo & Company decreased their target price 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. Weiss Ratings reaffirmed a "sell (e+)" rating on shares of ThredUp in a research report on Friday, March 27th. Finally, TD Cowen raised their target price on shares of ThredUp from $5.00 to $5.50 and gave the company a "buy" rating in a research report on Wednesday, April 29th. Two analysts have rated the stock with a Strong Buy rating, three have assigned a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $9.50.

ThredUp Stock Down 2.5%

Shares of TDUP stock opened at $4.37 on Tuesday. The firm has a fifty day moving average of $3.91 and a 200-day moving average of $5.83. The company has a quick ratio of 0.91, a current ratio of 0.91 and a debt-to-equity ratio of 0.24. ThredUp has a 12-month low of $3.08 and a 12-month high of $12.28. The company has a market capitalization of $555.16 million, a price-to-earnings ratio of -29.13 and a beta of 2.07.

ThredUp (NASDAQ:TDUP - Get Free Report) last issued its quarterly earnings data on Monday, May 4th. The company reported ($0.05) earnings per share (EPS) for the quarter, hitting the consensus estimate of ($0.05). The company had revenue of $81.67 million during the quarter, compared to the consensus estimate of $80.17 million. ThredUp had a negative net margin of 6.50% and a negative return on equity of 34.48%. As a group, equities research analysts predict that ThredUp will post -0.11 earnings per share for the current fiscal year.

Insider Activity

In other news, COO Christopher Homer sold 69,741 shares of ThredUp stock in a transaction dated Tuesday, March 3rd. The shares were sold at an average price of $3.82, for a total value of $266,410.62. Following the completion of the transaction, the chief operating officer owned 1,274,906 shares of the company's stock, valued at $4,870,140.92. This trade represents a 5.19% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Patricia Nakache acquired 13,157 shares of the firm's stock in a transaction dated Tuesday, March 10th. The stock was purchased at an average cost of $3.73 per share, with a total value of $49,075.61. Following the transaction, the director owned 14,017 shares in the company, valued at approximately $52,283.41. This trade represents a 1,529.88% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Insiders own 23.10% of the company's stock.

Institutional Inflows and Outflows

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

ThredUp News Roundup

Here are the key news stories impacting ThredUp this week:

• Positive Sentiment: Q1 results showed revenue of $81.7M (+15% YoY), gross margin improvement (79.2%) and record active buyers of 1.71M (+25%), plus EPS that met consensus — evidence of demand and margin progress. ThredUp Announces First Quarter 2026 Results
• Positive Sentiment: Management raised its full‑year 2026 outlook, lifting expectations for Revenue, Gross Margin and Adjusted EBITDA margin — a sign management sees sustainable improvement this year. ThredUp Announces First Quarter 2026 Results
• Neutral Sentiment: Q2 revenue guidance was set at $89.0M–$91.0M (consensus ~$89.6M), essentially in line with Street expectations — not a clear catalyst either way. Q1 2026 Press Release / Guidance
• Neutral Sentiment: Investors can review the full Q1 conference call/transcript for color on customer behavior, marketing cadence and inventory dynamics. ThredUp (TDUP) Q1 2026 Earnings Transcript
• Negative Sentiment: Some analysts are resetting targets and reframing the investment case, reflecting skeptical views about valuation and the runway to sustained profitability. That analyst pushback is pressuring the stock. Why The ThredUp (TDUP) Investment Story Is Shifting As Analyst Targets Reset
• Negative Sentiment: ThredUp remains unprofitable on the quarter (negative net margin ~6.5% and negative ROE), with modest cash (about $54.4M) — ongoing profitability and cash runway concerns limit upside until results turn sustainably positive. ThredUp Q1 Earnings / Marketbeat

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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