ThredUp (NASDAQ:TDUP) Shares Gap Up on Better-Than-Expected Earnings

ThredUp Inc. (NASDAQ:TDUP - Get Free Report)'s share price gapped up before the market opened on Tuesday after the company announced better than expected quarterly earnings. The stock had previously closed at $4.44, but opened at $5.39. ThredUp shares last traded at $5.86, with a volume of 4,672,025 shares traded.

The company reported ($0.04) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.07) by $0.03. ThredUp had a negative return on equity of 78.74% and a negative net margin of 22.16%. The company had revenue of $71.29 million during the quarter, compared to analysts' expectations of $67.54 million.

Wall Street Analysts Forecast Growth

Several analysts have weighed in on TDUP shares. Telsey Advisory Group upped their price objective on shares of ThredUp from $6.00 to $7.00 and gave the stock an "outperform" rating in a research note on Tuesday, May 6th. Wells Fargo & Company reissued an "overweight" rating and issued a $7.50 price objective (up previously from $6.00) on shares of ThredUp in a research note on Tuesday, May 6th. Finally, Needham & Company LLC restated a "hold" rating on shares of ThredUp in a research note on Tuesday, March 4th.

Insider Activity at ThredUp

In other news, Director Patricia Nakache sold 35,098 shares of the company's stock in a transaction on Friday, February 14th. The stock was sold at an average price of $2.69, for a total transaction of $94,413.62. Following the transaction, the director now owns 250,956 shares of the company's stock, valued at $675,071.64. This represents a 12.27 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Insiders sold a total of 1,317,487 shares of company stock valued at $3,992,948 over the last quarter. Corporate insiders own 27.00% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in TDUP. Blair William & Co. IL boosted its position in shares of ThredUp by 46.3% during the first quarter. Blair William & Co. IL now owns 2,969,725 shares of the company's stock worth $7,157,000 after purchasing an additional 939,449 shares in the last quarter. Skandinaviska Enskilda Banken AB publ lifted its holdings in ThredUp by 15.9% during the first quarter. Skandinaviska Enskilda Banken AB publ now owns 23,914 shares of the company's stock worth $58,000 after acquiring an additional 3,285 shares in the last quarter. BloombergSen Inc. grew its stake in ThredUp by 98.5% in the first quarter. BloombergSen Inc. now owns 1,269,649 shares of the company's stock valued at $3,060,000 after acquiring an additional 630,101 shares during the period. Victory Capital Management Inc. bought a new stake in shares of ThredUp in the first quarter worth about $25,000. Finally, Bank of New York Mellon Corp raised its position in shares of ThredUp by 5.2% during the first quarter. Bank of New York Mellon Corp now owns 188,338 shares of the company's stock worth $454,000 after purchasing an additional 9,254 shares during the period. 89.08% of the stock is currently owned by institutional investors.

ThredUp Price Performance

The company has a current ratio of 0.96, a quick ratio of 0.86 and a debt-to-equity ratio of 0.28. The company has a fifty day moving average price of $3.33 and a two-hundred day moving average price of $2.27. The firm has a market cap of $723.89 million, a P/E ratio of -9.73 and a beta of 1.51.

ThredUp Company Profile

ThredUp Inc, together with its subsidiaries, operates an online resale platform in the United States and internationally. Its platform enables consumers to buy and sell primarily secondhand apparel, shoes, and accessories. ThredUp Inc was incorporated in 2009 and is headquartered in Oakland, California.