ThredUp (NASDAQ:TDUP) Stock Price Down 7.1% - Should You Sell?

Key Points

• ThredUp shares fell 7.1% in Wednesday trading, dipping to as low as $6.02 before last trading around $5.97, with volume far below its daily average.
• Analyst sentiment remains mixed but generally positive: the stock has a Moderate Buy consensus rating and an average price target of $9.14, though several firms have recently trimmed targets.
• ThredUp’s latest earnings met expectations, with revenue slightly ahead of estimates, but the company is still not profitable and management saw insider selling tied to equity award tax withholding.

ThredUp Inc. (NASDAQ:TDUP - Get Free Report)'s stock price traded down 7.1% during mid-day trading on Wednesday . The company traded as low as $6.02 and last traded at $5.9740. Approximately 607,995 shares were traded during trading, a decline of 73% from the average daily volume of 2,226,186 shares. The stock had previously closed at $6.43.

Analyst Upgrades and Downgrades

A number of research firms have issued reports on TDUP. Wells Fargo & Company cut their target price on ThredUp from $10.00 to $8.00 and set an "overweight" rating on the stock in a research note on Tuesday, May 5th. TD Cowen boosted their target price on shares of ThredUp from $5.00 to $5.70 and gave the company a "buy" rating in a research note on Tuesday, May 5th. Weiss Ratings restated a "sell (e+)" rating on shares of ThredUp in a research report on Wednesday, June 24th. Finally, Telsey Advisory Group dropped their price target on shares of ThredUp from $9.00 to $7.00 and set an "outperform" rating on the stock in a research note on Tuesday, May 5th. One research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, ThredUp currently has a consensus rating of "Moderate Buy" and an average target price of $9.14.

ThredUp Price Performance

The business has a fifty day moving average price of $5.57 and a 200 day moving average price of $4.89. The company has a debt-to-equity ratio of 0.30, a current ratio of 0.95 and a quick ratio of 0.95. The company has a market capitalization of $768.57 million, a price-to-earnings ratio of -37.23 and a beta of 1.97.

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

Insider Activity

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

Institutional Trading of ThredUp

A number of hedge funds and other institutional investors have recently made changes to their positions in TDUP. MYDA Advisors LLC bought a new position in shares of ThredUp in the fourth quarter valued at $2,173,000. Zweig DiMenna Associates LLC bought a new stake in shares of ThredUp during the 4th quarter worth $3,441,000. Penn Capital Management Company LLC acquired a new position in shares of ThredUp in the 4th quarter worth $1,567,000. Needham Investment Management LLC grew its holdings in shares of ThredUp by 7.0% in the 4th quarter. Needham Investment Management LLC now owns 6,075,000 shares of the company's stock worth $38,819,000 after acquiring an additional 400,000 shares during the last quarter. Finally, BloombergSen Inc. raised its position in shares of ThredUp by 44.7% during the fourth quarter. BloombergSen Inc. now owns 1,274,289 shares of the company's stock worth $8,143,000 after purchasing an additional 393,385 shares during the period. 89.08% of the stock is currently owned by institutional investors.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.