ThredUp (NASDAQ:TDUP) Trading Down 6.4% – Time to Sell?

ThredUp Inc. (NASDAQ:TDUP)’s share price fell 6.4% during mid-day trading on Wednesday . The company traded as low as $6.48 and last traded at $6.4050. Approximately 859,676 shares traded hands during mid-day trading, a decline of 63% from the average daily volume of 2,294,428 shares. The stock had previously closed at $6.84.

Wall Street Analysts Forecast Growth

A number of research firms have weighed in on TDUP. TD Cowen upped their price target on ThredUp from $5.00 to $5.70 and gave the stock a “buy” rating in a research report on Tuesday, May 5th. Telsey Advisory Group lowered their price objective on shares of ThredUp from $9.00 to $7.00 and set an “outperform” rating on the stock in a report on Tuesday, May 5th. Weiss Ratings reissued a “sell (e+)” rating on shares of ThredUp in a research report on Wednesday, June 24th. Finally, Wells Fargo & Company reduced their target price on shares of ThredUp from $10.00 to $8.00 and set an “overweight” rating for the company in a report on Tuesday, May 5th. Two equities research analysts have rated the stock with a Strong Buy rating, three have assigned a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $9.14.

ThredUp Stock Down 9.7%

The firm has a fifty day moving average of $5.17 and a 200-day moving average of $4.90. The company has a quick ratio of 0.95, a current ratio of 0.95 and a debt-to-equity ratio of 0.30. The firm has a market cap of $796.82 million, a P/E ratio of -38.65 and a beta of 1.97.

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

Insider Buying and Selling at ThredUp

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

Institutional Trading of ThredUp

Several institutional investors and hedge funds have recently bought and sold shares of TDUP. Raymond James Financial Inc. bought a new position in shares of ThredUp during the 2nd quarter worth approximately $32,000. R Squared Ltd bought a new stake in ThredUp in the 1st quarter valued at $34,000. Quarry LP acquired a new stake in ThredUp during the 3rd quarter valued at $37,000. Abel Hall LLC bought a new position in ThredUp during the first quarter worth $39,000. Finally, Meeder Asset Management Inc. increased its holdings in shares of ThredUp by 552.9% in the fourth quarter. Meeder Asset Management Inc. now owns 6,405 shares of the company’s stock valued at $41,000 after purchasing an additional 5,424 shares during the last quarter. Institutional investors own 89.08% of the company’s stock.

ThredUp Company Profile

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.