ThredUp (NASDAQ:TDUP) Shares Down 5% - Should You Sell?

Key Points

• ThredUp's stock price fell by 5% during mid-day trading, closely trading around $10.27, marking a significant decline in trading volume compared to its average sessions.
• Wall Street analysts have mixed opinions on ThredUp, with one lowering its rating to "hold" while others set a price target up to $14.00, but the consensus remains a "Buy" with a target price of $13.00.
• Insider selling has occurred recently, with the CFO and a director disposing of a combined total of 155,000 shares, indicating a notable decrease in their ownership stakes.

ThredUp Inc. (NASDAQ:TDUP - Get Free Report) was down 5% during mid-day trading on Tuesday . The stock traded as low as $10.57 and last traded at $10.27. Approximately 63,480 shares traded hands during mid-day trading, a decline of 97% from the average daily volume of 1,922,343 shares. The stock had previously closed at $10.80.

Analyst Upgrades and Downgrades

TDUP has been the topic of several research reports. Northland Capmk raised ThredUp to a "strong-buy" rating in a report on Monday, July 21st. Northland Securities set a $14.00 price target on ThredUp in a research note on Tuesday, August 5th. Wall Street Zen lowered ThredUp from a "buy" rating to a "hold" rating in a research report on Saturday, August 30th. Needham & Company LLC reissued a "hold" rating on shares of ThredUp in a report on Thursday, September 4th. Finally, Telsey Advisory Group raised their target price on shares of ThredUp from $9.00 to $12.00 and gave the stock an "outperform" rating in a research report on Tuesday, August 5th. One investment analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and one has given a Hold rating to the company. Based on data from MarketBeat, the stock has a consensus rating of "Buy" and a consensus target price of $13.00.

ThredUp Price Performance

The company has a market cap of $1.30 billion, a price-to-earnings ratio of -21.49 and a beta of 1.75. The company's 50 day moving average price is $9.83 and its 200 day moving average price is $6.85. The company has a current ratio of 0.96, a quick ratio of 0.96 and a debt-to-equity ratio of 0.27.

Insider Buying and Selling

In other ThredUp news, Director Coretha M. Rushing sold 105,000 shares of the business's stock in a transaction that occurred on Thursday, August 21st. The stock was sold at an average price of $10.82, for a total transaction of $1,136,100.00. Following the transaction, the director owned 148,197 shares in the company, valued at approximately $1,603,491.54. The trade was a 41.47% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, CFO Sean Sobers sold 50,000 shares of the firm's stock in a transaction that occurred on Thursday, August 7th. The shares were sold at an average price of $10.04, for a total value of $502,000.00. Following the completion of the sale, the chief financial officer directly owned 427,390 shares of the company's stock, valued at $4,290,995.60. This represents a 10.47% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 255,000 shares of company stock worth $2,642,100 in the last ninety days. 27.00% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Raymond James Financial Inc. acquired a new stake in shares of ThredUp in the 2nd quarter worth approximately $32,000. Ameritas Investment Partners Inc. boosted its position in ThredUp by 32.7% during the second quarter. Ameritas Investment Partners Inc. now owns 9,290 shares of the company's stock worth $70,000 after purchasing an additional 2,287 shares in the last quarter. Bensler LLC acquired a new stake in ThredUp in the second quarter valued at $75,000. Victory Capital Management Inc. purchased a new position in shares of ThredUp in the first quarter valued at $25,000. Finally, Tower Research Capital LLC TRC raised its stake in shares of ThredUp by 110.1% during the 2nd quarter. Tower Research Capital LLC TRC now owns 10,959 shares of the company's stock worth $82,000 after buying an additional 5,744 shares during the last quarter. 89.08% of the stock is currently owned by institutional investors and hedge funds.

About ThredUp

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.