Torrid (NYSE:CURV) Lowered to "Sell" Rating by Wall Street Zen

Key Points

• Investment analysts at Wall Street Zen have downgraded Torrid's stock from a "hold" rating to a "sell" rating.
• The consensus target price for Torrid is now $3.09, reflecting recent price target reductions by several analysts.
• Torrid ranks poorly with a consensus rating of "Reduce" and reported earnings that missed estimates, leading to concerns about its financial performance.

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

A number of other brokerages also recently weighed in on CURV. BTIG Research reiterated a "neutral" rating on shares of Torrid in a report on Friday, September 5th. The Goldman Sachs Group dropped their price target on shares of Torrid from $2.25 to $1.75 and set a "sell" rating on the stock in a research report on Monday, September 8th. Telsey Advisory Group dropped their target price on shares of Torrid from $6.00 to $3.00 and set a "market perform" rating on the stock in a research report on Thursday, August 28th. Bank of America dropped their target price on shares of Torrid from $7.00 to $6.00 and set a "buy" rating on the stock in a research report on Friday, September 5th. Finally, Morgan Stanley lowered their price target on shares of Torrid from $2.00 to $1.60 and set an "underweight" rating on the stock in a report on Thursday. One analyst has rated the stock with a Buy rating, two have assigned a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, Torrid presently has an average rating of "Reduce" and a consensus target price of $3.09.

Torrid Trading Up 0.3%

NYSE CURV traded up $0.01 on Monday, hitting $1.82. 357,048 shares of the company's stock were exchanged, compared to its average volume of 1,077,598. The stock has a 50-day moving average of $2.28 and a 200-day moving average of $4.08. Torrid has a 52 week low of $1.62 and a 52 week high of $7.19. The stock has a market cap of $179.99 million, a price-to-earnings ratio of 45.25, a P/E/G ratio of 2.79 and a beta of 1.56.

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

Insider Activity

In other news, CEO Lisa M. Harper sold 350,000 shares of the stock in a transaction that occurred on Thursday, June 26th. The shares were sold at an average price of $3.32, for a total transaction of $1,162,000.00. Following the sale, the chief executive officer owned 5,266,453 shares in the company, valued at $17,484,623.96. This represents a 6.23% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, major shareholder Fund 1 Investments, Llc sold 257,833 shares of the firm's stock in a transaction dated Wednesday, July 2nd. The stock was sold at an average price of $2.73, for a total value of $703,884.09. Following the completion of the transaction, the insider directly owned 10,064,856 shares in the company, valued at $27,477,056.88. The trade was a 2.50% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 16,538,741 shares of company stock valued at $54,611,499. Insiders own 9.77% of the company's stock.

Hedge Funds Weigh In On Torrid

Several large investors have recently added to or reduced their stakes in the company. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its position in Torrid by 55.9% in the fourth quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 11,189 shares of the company's stock worth $59,000 after purchasing an additional 4,013 shares during the last quarter. Deutsche Bank AG purchased a new stake in shares of Torrid during the 1st quarter worth $68,000. Two Sigma Advisers LP purchased a new stake in shares of Torrid during the 4th quarter worth $80,000. Kapitalo Investimentos Ltda acquired a new stake in Torrid in the first quarter worth about $95,000. Finally, Creative Planning boosted its holdings in Torrid by 45.4% in the second quarter. Creative Planning now owns 37,291 shares of the company's stock worth $110,000 after acquiring an additional 11,641 shares in the last quarter. Hedge funds and other institutional investors own 81.82% of the company's stock.

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.