ThredUp (NASDAQ:TDUP) Shares Up 11.2% - What's Next?

Key Points

• ThredUp shares jumped 11.2% on Thursday, trading as high as $5.87 after a prior close of $5.33, though volume was well below average.
• Analysts remain broadly positive: TD Cowen raised its target to $5.70 and Wells Fargo, Telsey, and others also updated ratings, leaving ThredUp with a consensus “Moderate Buy” and a $9.14 price target.
• The company recently reported earnings in line with expectations at -$0.05 EPS and slightly beat revenue estimates, while two top executives sold shares in transactions tied to tax withholding obligations.

ThredUp Inc. (NASDAQ:TDUP - Get Free Report) rose 11.2% on Thursday . The company traded as high as $5.87 and last traded at $5.9250. 939,626 shares were traded during trading, a decline of 59% from the average session volume of 2,310,527 shares. The stock had previously closed at $5.33.

Analysts Set New Price Targets

Several equities analysts have recently issued reports on TDUP shares. TD Cowen boosted their price objective on ThredUp from $5.00 to $5.70 and gave the company a "buy" rating in a report on Tuesday, May 5th. Wells Fargo & Company dropped their target price on ThredUp from $10.00 to $8.00 and set an "overweight" rating on the stock in a report on Tuesday, May 5th. Weiss Ratings reiterated a "sell (e+)" rating on shares of ThredUp in a research report on Friday, March 27th. Finally, Telsey Advisory Group decreased their price target on ThredUp from $9.00 to $7.00 and set an "outperform" rating for the company in a report on Tuesday, May 5th. Two investment analysts have rated the stock with a Strong Buy rating, three have given a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus price target of $9.14.

ThredUp Stock Performance

The business's 50-day simple moving average is $4.46 and its two-hundred day simple moving average is $5.04. The company has a quick ratio of 0.95, a current ratio of 0.95 and a debt-to-equity ratio of 0.30. The firm has a market cap of $769.34 million, a price-to-earnings ratio of -37.22 and a beta of 2.07.

ThredUp (NASDAQ:TDUP - Get Free Report) last posted its earnings results on Monday, May 4th. The company reported ($0.05) EPS for the quarter, meeting analysts' consensus estimates of ($0.05). ThredUp had a negative return on equity of 36.11% and a negative net margin of 6.68%.The firm had revenue of $81.67 million for the quarter, compared to analysts' expectations of $80.17 million. As a group, sell-side analysts expect that ThredUp Inc. will post -0.09 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, COO Christopher Homer sold 61,578 shares of the company's stock in a transaction that occurred on Tuesday, June 2nd. The stock was sold at an average price of $4.43, for a total transaction of $272,790.54. Following the completion of the transaction, the chief operating officer directly owned 1,301,843 shares of the company's stock, valued at $5,767,164.49. This represents a 4.52% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Sean Sobers sold 45,554 shares of the stock in a transaction that occurred on Tuesday, June 2nd. The shares were sold at an average price of $4.43, for a total value of $201,804.22. Following the transaction, the chief financial officer owned 572,523 shares in the company, valued at $2,536,276.89. This trade represents a 7.37% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Corporate insiders own 23.10% of the company's stock.

Institutional Investors Weigh In On ThredUp

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Bank of America Corp DE raised its position in ThredUp by 42.6% during the fourth quarter. Bank of America Corp DE now owns 77,456 shares of the company's stock worth $108,000 after acquiring an additional 23,156 shares during the period. Cubist Systematic Strategies LLC grew its position in shares of ThredUp by 7.6% in the first quarter. Cubist Systematic Strategies LLC now owns 37,516 shares of the company's stock valued at $90,000 after purchasing an additional 2,659 shares during the period. AQR Capital Management LLC increased its stake in shares of ThredUp by 185.9% during the first quarter. AQR Capital Management LLC now owns 94,652 shares of the company's stock worth $228,000 after purchasing an additional 61,547 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its stake in shares of ThredUp by 4.5% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 47,705 shares of the company's stock worth $115,000 after purchasing an additional 2,034 shares in the last quarter. Finally, Jane Street Group LLC raised its position in shares of ThredUp by 39.2% during the 1st quarter. Jane Street Group LLC now owns 92,376 shares of the company's stock worth $223,000 after purchasing an additional 25,995 shares during the last quarter. Hedge funds and other institutional investors own 89.08% of the company's stock.

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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