ThredUp (NASDAQ:TDUP) Trading Down 5.4% - Time to Sell?

Key Points

• ThredUp Inc. (NASDAQ:TDUP) saw its stock price drop by 5.4%, closing at $10.53 after reaching a low of $10.55 during the trading session.
• Analyst ratings for ThredUp are mixed, with one "Strong Buy," three "Buy," and one "Hold," while Wells Fargo boosted the target price to $13.00.
• Insider selling has increased, with CFO Sean Sobers and Director Coretha M. Rushing selling a combined 155,000 shares, suggesting potential shifts in confidence among company leaders.

ThredUp Inc. (NASDAQ:TDUP - Get Free Report) shares were down 5.4% on Tuesday . The company traded as low as $10.55 and last traded at $10.53. Approximately 427,844 shares were traded during trading, a decline of 78% from the average daily volume of 1,933,741 shares. The stock had previously closed at $11.13.

Analysts Set New Price Targets

A number of equities analysts recently weighed in on TDUP shares. Needham & Company LLC restated a "hold" rating on shares of ThredUp in a research report on Thursday, September 4th. Telsey Advisory Group boosted their price target 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. Northland Capmk raised shares of ThredUp to a "strong-buy" rating in a report on Monday, July 21st. Northland Securities set a $14.00 price objective on shares of ThredUp in a report on Tuesday, August 5th. Finally, Wall Street Zen lowered shares of ThredUp from a "buy" rating to a "hold" rating in a report on Saturday, August 30th. One investment analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and one has issued a Hold rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of "Buy" and a consensus target price of $13.00.

ThredUp Trading Down 4.8%

The company's 50 day moving average price is $9.48 and its 200 day moving average price is $6.60. The company has a debt-to-equity ratio of 0.27, a current ratio of 0.96 and a quick ratio of 0.96. The firm has a market cap of $1.28 billion, a PE ratio of -21.22 and a beta of 1.75.

Insider Activity at ThredUp

In related news, Director Coretha M. Rushing sold 105,000 shares of the firm's stock in a transaction that occurred on Thursday, August 21st. The shares were sold at an average price of $10.82, for a total value of $1,136,100.00. Following the sale, the director owned 148,197 shares of the company's stock, valued at $1,603,491.54. This trade represents a 41.47% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. 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 transaction of $502,000.00. Following the completion of the sale, the chief financial officer directly owned 427,390 shares in the company, valued at approximately $4,290,995.60. This trade represents a 10.47% decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders sold 255,000 shares of company stock worth $2,642,100. 27.00% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On ThredUp

Hedge funds have recently modified their holdings of the business. Two Sigma Investments LP grew its position in shares of ThredUp by 150.1% during the fourth quarter. Two Sigma Investments LP now owns 114,632 shares of the company's stock worth $159,000 after acquiring an additional 68,790 shares during the last quarter. Connor Clark & Lunn Investment Management Ltd. grew its position in shares of ThredUp by 122.4% during the first quarter. Connor Clark & Lunn Investment Management Ltd. now owns 557,023 shares of the company's stock worth $1,342,000 after acquiring an additional 306,572 shares during the last quarter. BloombergSen Inc. grew its position in shares of ThredUp by 98.5% during the first quarter. BloombergSen Inc. now owns 1,269,649 shares of the company's stock worth $3,060,000 after acquiring an additional 630,101 shares during the last quarter. Nuveen LLC purchased a new position in ThredUp in the 1st quarter valued at $571,000. Finally, Informed Momentum Co LLC purchased a new position in ThredUp in the 1st quarter valued at $751,000. 89.08% of the stock is currently owned by hedge funds and other institutional investors.

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.