ThredUp (NASDAQ:TDUP) Rating Increased to Strong-Buy at TD Cowen

Key Points

• TD Cowen upgraded ThredUp to a Strong-Buy; overall analyst coverage shows 3 Strong Buy, 2 Buy, 1 Hold and 1 Sell, with a MarketBeat consensus rating of "Buy" and a consensus price target of $9.80.
• Shares opened at $3.50 (down ~4.4%), market cap ~$444.6M and trading below its 50- and 200-day SMAs ($4.15 and $6.44); the company remains unprofitable with a -6.5% net margin and negative return on equity.
• Notable insider moves include director Patricia Nakache buying 13,157 shares at $3.73 while COO Christopher Homer sold 69,741 shares; filings show insiders own about 27% and institutional investors roughly 89% of the stock.

ThredUp (NASDAQ:TDUP - Get Free Report) was upgraded by analysts at TD Cowen to a "strong-buy" rating in a report issued on Tuesday,Zacks.com reports.

A number of other analysts also recently weighed in on the stock. Telsey Advisory Group reduced their target price on shares of ThredUp from $12.00 to $9.00 and set an "outperform" rating on the stock in a report on Tuesday, March 3rd. Weiss Ratings reiterated a "sell (e+)" rating on shares of ThredUp in a report on Friday, March 27th. Wells Fargo & Company cut their price target on shares of ThredUp from $13.00 to $10.00 and set an "overweight" rating on the stock in a report on Tuesday, March 3rd. Finally, Wall Street Zen downgraded shares of ThredUp from a "buy" rating to a "hold" rating in a report on Saturday, December 20th. Three equities research analysts have rated the stock with a Strong Buy rating, two have issued a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of "Buy" and a consensus price target of $9.80.

ThredUp Trading Down 4.4%

Shares of ThredUp stock opened at $3.50 on Tuesday. The company's fifty day simple moving average is $4.15 and its 200-day simple moving average is $6.44. The stock has a market capitalization of $444.64 million, a PE ratio of -23.33 and a beta of 1.85. ThredUp has a 1-year low of $2.73 and a 1-year high of $12.28. The company has a debt-to-equity ratio of 0.24, a current ratio of 0.91 and a quick ratio of 0.91.

ThredUp (NASDAQ:TDUP - Get Free Report) last posted its earnings results on Monday, March 2nd. The company reported ($0.04) earnings per share for the quarter, hitting 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 firm had revenue of $79.70 million for the quarter, compared to the consensus estimate of $77.17 million. As a group, equities analysts anticipate that ThredUp will post -0.56 earnings per share for the current year.

Insider Activity at ThredUp

In other news, Director Patricia Nakache purchased 13,157 shares of the business's stock in a transaction that occurred on Tuesday, March 10th. The shares were bought at an average cost of $3.73 per share, for a total transaction of $49,075.61. Following the acquisition, the director owned 14,017 shares of the company's stock, valued at approximately $52,283.41. This trade represents a 1,529.88% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, COO Christopher Homer sold 69,741 shares of the company's stock in a transaction dated 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 owned 1,274,906 shares in the company, valued at $4,870,140.92. This represents a 5.19% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 27.00% of the stock is currently owned by insiders.

Hedge Funds Weigh In On ThredUp

A number of hedge funds have recently added to or reduced their stakes in TDUP. Bank of America Corp DE lifted its position in shares of ThredUp by 42.6% in the 4th quarter. Bank of America Corp DE now owns 77,456 shares of the company's stock worth $108,000 after purchasing an additional 23,156 shares during the period. Cubist Systematic Strategies LLC grew its position in ThredUp by 7.6% during the first quarter. Cubist Systematic Strategies LLC now owns 37,516 shares of the company's stock valued at $90,000 after buying an additional 2,659 shares during the period. AQR Capital Management LLC grew its position in ThredUp by 185.9% during the first quarter. AQR Capital Management LLC now owns 94,652 shares of the company's stock valued at $228,000 after buying an additional 61,547 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its position in ThredUp by 4.5% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 47,705 shares of the company's stock valued at $115,000 after buying an additional 2,034 shares during the period. Finally, Jane Street Group LLC lifted its holdings in ThredUp by 39.2% during the first quarter. Jane Street Group LLC now owns 92,376 shares of the company's stock valued at $223,000 after purchasing an additional 25,995 shares in the last quarter. 89.08% of the stock is currently owned by institutional investors.

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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