Torrid (NYSE:CURV) Price Target Lowered to $1.75 at The Goldman Sachs Group

Key Points

• Goldman Sachs Group has lowered its price target for Torrid (NYSE:CURV) from $2.25 to $1.75, maintaining a "sell" rating on the stock.
• Torrid's shares have experienced a decline in price, trading at $1.67, significantly below its 12-month high of $7.25.
• Insider activity has seen major shareholders selling large portions of their stakes, with 16.5 million shares sold recently, indicating potential concern among insiders.

Torrid (NYSE:CURV - Get Free Report) had its target price decreased by equities researchers at The Goldman Sachs Group from $2.25 to $1.75 in a report issued on Monday,Benzinga reports. The brokerage presently has a "sell" rating on the stock. The Goldman Sachs Group's price objective suggests a potential upside of 5.11% from the stock's previous close.

A number of other analysts have also issued reports on the company. BTIG Research reaffirmed a "neutral" rating on shares of Torrid in a report on Friday. Wall Street Zen downgraded Torrid from a "hold" rating to a "sell" rating in a research report on Saturday. Telsey Advisory Group decreased their price objective on Torrid from $6.00 to $3.00 and set a "market perform" rating on the stock in a report on Thursday, August 28th. Finally, Bank of America lowered their price objective on Torrid from $7.00 to $6.00 and set a "buy" rating on the stock in a research report on Friday. Two analysts have rated the stock with a Buy rating, two have given a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Hold" and an average target price of $3.69.

Torrid Price Performance

Shares of CURV stock traded down $0.12 during trading hours on Monday, reaching $1.67. 1,279,573 shares of the stock were exchanged, compared to its average volume of 479,238. The firm has a market capitalization of $174.86 million, a P/E ratio of 41.64, a P/E/G ratio of 1.10 and a beta of 1.56. The business's fifty day moving average is $2.48 and its two-hundred day moving average is $4.37. Torrid has a 12-month low of $1.65 and a 12-month high of $7.25.

Torrid (NYSE:CURV - Get Free Report) last released its earnings results on Thursday, September 4th. The company reported $0.02 EPS for the quarter, missing analysts' consensus estimates of $0.04 by ($0.02). The business had revenue of $262.81 million during the quarter, compared to analyst estimates of $259.38 million. Torrid had a net margin of 0.30% and a negative return on equity of 1.72%. During the same period last year, the business posted $0.08 EPS. Torrid has set its FY 2025 guidance at EPS. Q3 2025 guidance at EPS. As a group, equities research analysts predict that Torrid will post 0.14 earnings per share for the current fiscal year.

Insider Activity

In related news, major shareholder Sycamore Partners Torrid, L.L. sold 15,680,908 shares of Torrid stock in a transaction dated Thursday, June 26th. The shares were sold at an average price of $3.32, for a total transaction of $52,060,614.56. Following the completion of the transaction, the insider directly owned 58,295,694 shares of the company's stock, valued at $193,541,704.08. This trade represents a 21.20% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, major shareholder Fund 1 Investments, Llc sold 250,000 shares of the business's stock in a transaction dated Thursday, July 3rd. The shares were sold at an average price of $2.74, for a total transaction of $685,000.00. Following the completion of the sale, the insider directly owned 9,814,856 shares of the company's stock, valued at $26,892,705.44. This represents a 2.48% decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 16,538,741 shares of company stock valued at $54,611,499. 9.77% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of CURV. State of Wyoming increased its holdings in shares of Torrid by 17.3% in the 2nd quarter. State of Wyoming now owns 44,628 shares of the company's stock valued at $132,000 after acquiring an additional 6,580 shares during the last quarter. Hudson Bay Capital Management LP acquired a new position in shares of Torrid in the second quarter worth $1,106,000. Shay Capital LLC lifted its stake in Torrid by 40.4% during the second quarter. Shay Capital LLC now owns 434,359 shares of the company's stock worth $1,281,000 after purchasing an additional 125,000 shares during the period. Fund 1 Investments LLC raised its position in shares of Torrid by 12.4% during the 2nd quarter. Fund 1 Investments LLC now owns 10,433,112 shares of the company's stock valued at $30,778,000 after acquiring an additional 1,150,726 shares during the last quarter. Finally, Bank of America Corp DE boosted its stake in shares of Torrid by 191.1% during the 2nd quarter. Bank of America Corp DE now owns 1,917,793 shares of the company's stock worth $5,657,000 after buying an additional 1,258,934 shares during the last quarter. 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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