Torrid (NYSE:CURV) Cut to Sell at Wall Street Zen

Key Points

• Torrid has been downgraded from a "hold" to a "sell" rating by Wall Street Zen, reflecting a negative outlook for the company's stock performance.
• Research analysts have significantly lowered their target prices for Torrid, with estimates ranging from $1.50 to $3.00, indicating a bearish sentiment towards the stock.
• A recent earnings report revealed that Torrid missed expectations, reporting only $0.02 earnings per share, below the consensus estimate of $0.04.

Torrid (NYSE:CURV - Get Free Report) was downgraded by analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a research note issued on Saturday.

Several other research analysts have also issued reports on the company. Telsey Advisory Group reduced their target price on Torrid from $6.00 to $3.00 and set a "market perform" rating on the stock in a research report on Thursday, August 28th. The Goldman Sachs Group reduced their target price on Torrid from $1.75 to $1.50 and set a "sell" rating on the stock in a research report on Monday, October 6th. Weiss Ratings reaffirmed a "sell (d)" rating on shares of Torrid in a research report on Wednesday. Morgan Stanley cut their price objective on Torrid from $2.00 to $1.60 and set an "underweight" rating on the stock in a report on Thursday, September 18th. Finally, Bank of America cut their price objective on Torrid from $7.00 to $6.00 and set a "buy" rating on the stock in a report on Friday, September 5th. One research analyst has rated the stock with a Buy rating, two have given a Hold rating and three have given a Sell rating to the stock. According to MarketBeat, Torrid has a consensus rating of "Reduce" and a consensus target price of $3.03.

Torrid Price Performance

Shares of NYSE:CURV opened at $1.51 on Friday. The business's 50-day moving average is $1.99 and its 200 day moving average is $3.71. Torrid has a 1 year low of $1.50 and a 1 year high of $7.19. The firm has a market capitalization of $149.74 million, a P/E ratio of 37.76, a P/E/G ratio of 2.86 and a beta of 1.51.

Torrid (NYSE:CURV - Get Free Report) last announced its earnings results on Thursday, September 4th. The company reported $0.02 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.04 by ($0.02). Torrid had a net margin of 0.30% and a negative return on equity of 1.69%. The business had revenue of $262.81 million for the quarter, compared to analyst estimates of $259.38 million. During the same period in the prior year, the company earned $0.08 earnings per share. Torrid has set its FY 2025 guidance at EPS. Q3 2025 guidance at EPS. On average, analysts expect that Torrid will post 0.14 EPS for the current year.

Insider Transactions at Torrid

In other news, insider Ashlee Wheeler sold 16,959 shares of the stock in a transaction dated Tuesday, September 23rd. The stock was sold at an average price of $1.78, for a total value of $30,187.02. Following the transaction, the insider directly owned 107,443 shares of the company's stock, valued at approximately $191,248.54. This represents a 13.63% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO Paula Dempsey sold 26,000 shares of the firm's stock in a transaction dated Tuesday, September 23rd. The stock was sold at an average price of $1.76, for a total value of $45,760.00. Following the sale, the chief financial officer directly owned 145,361 shares in the company, valued at approximately $255,835.36. This trade represents a 15.17% decrease in their ownership of the stock. The disclosure for this sale can be found here. 5.85% of the stock is currently owned by corporate insiders.

Institutional Trading of Torrid

Several hedge funds and other institutional investors have recently bought and sold shares of CURV. State of Wyoming grew its holdings in Torrid by 17.3% in the second quarter. State of Wyoming now owns 44,628 shares of the company's stock valued at $132,000 after purchasing an additional 6,580 shares during the period. Hudson Bay Capital Management LP acquired a new stake in Torrid in the second quarter valued at approximately $1,106,000. Shay Capital LLC grew its holdings in Torrid by 40.4% in the second quarter. Shay Capital LLC now owns 434,359 shares of the company's stock valued at $1,281,000 after purchasing an additional 125,000 shares during the period. Fund 1 Investments LLC grew its holdings in Torrid by 12.4% in the second quarter. Fund 1 Investments LLC now owns 10,433,112 shares of the company's stock valued at $30,778,000 after purchasing an additional 1,150,726 shares during the period. Finally, Bank of America Corp DE grew its holdings in Torrid by 191.1% in the second quarter. Bank of America Corp DE now owns 1,917,793 shares of the company's stock valued at $5,657,000 after purchasing an additional 1,258,934 shares during the period. 81.82% of the stock is owned by institutional investors and hedge funds.

Torrid Company Profile

Torrid Holdings Inc operates in women's plus-size apparel and intimates market in North America. The company designs, develops, and merchandises its products under the Torrid, Torrid Curve, CURV, and Lovesick brand names. It is involved in the sale of tops, bottoms, dresses, denims, activewear, intimates, sleep wear, swim wear, and outerwear products; and non-apparel products comprising accessories, footwear, and beauty products.

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