ThredUp (NASDAQ:TDUP) Shares Down 9.2% – What’s Next?

Shares of ThredUp Inc. (NASDAQ:TDUP) fell 9.2% during mid-day trading on Wednesday . The company traded as low as $5.38 and last traded at $5.3950. 2,044,729 shares traded hands during mid-day trading, an increase of 21% from the average session volume of 1,687,439 shares. The stock had previously closed at $5.94.

Wall Street Analysts Forecast Growth

A number of analysts have recently weighed in on the stock. Weiss Ratings reiterated a “sell (e+)” rating on shares of ThredUp in a report on Monday, December 29th. Roth Capital started coverage on ThredUp in a research report on Wednesday, October 29th. They set a “buy” rating and a $11.00 price target for the company. Wall Street Zen cut ThredUp from a “buy” rating to a “hold” rating in a report on Saturday, December 20th. Finally, Telsey Advisory Group reissued an “outperform” rating and set a $12.00 target price on shares of ThredUp in a research note on Tuesday, December 9th. Two investment analysts have rated the stock with a Strong Buy rating, three have given a Buy rating, one has given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $12.50.

ThredUp Trading Down 9.9%

The company has a debt-to-equity ratio of 0.26, a current ratio of 0.92 and a quick ratio of 0.92. The stock’s 50 day moving average is $7.24 and its 200-day moving average is $8.58. The company has a market capitalization of $669.50 million, a P/E ratio of -17.83 and a beta of 1.73.

ThredUp (NASDAQ:TDUP) last posted its earnings results on Monday, November 3rd. The company reported ($0.03) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.04) by $0.01. The firm had revenue of $82.16 million for the quarter, compared to the consensus estimate of $77.34 million. ThredUp had a negative return on equity of 39.20% and a negative net margin of 12.18%. As a group, equities research analysts anticipate that ThredUp Inc. will post -0.56 earnings per share for the current year.

Insider Buying and Selling at ThredUp

In other ThredUp news, Director Daniel J. Nova bought 65,000 shares of the company’s stock in a transaction dated Wednesday, November 5th. The shares were purchased at an average price of $8.04 per share, for a total transaction of $522,600.00. Following the acquisition, the director owned 368,930 shares in the company, valued at approximately $2,966,197.20. This represents a 21.39% increase in their position. The purchase was disclosed in a filing with the SEC, which can be accessed through this link. Also, CFO Sean Sobers sold 51,220 shares of the company’s stock in a transaction dated Tuesday, December 2nd. The stock was sold at an average price of $7.42, for a total transaction of $380,052.40. Following the completion of the sale, the chief financial officer directly owned 495,336 shares in the company, valued at $3,675,393.12. This represents a 9.37% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders own 27.00% of the company’s stock.

Hedge Funds Weigh In On ThredUp

Several large investors have recently made changes to their positions in the business. Marshall Wace LLP lifted its holdings in shares of ThredUp by 51.8% during the second quarter. Marshall Wace LLP now owns 4,373,596 shares of the company’s stock valued at $32,758,000 after purchasing an additional 1,492,015 shares in the last quarter. Prudential Financial Inc. raised its position in ThredUp by 3,625.5% in the 2nd quarter. Prudential Financial Inc. now owns 1,231,088 shares of the company’s stock worth $9,221,000 after buying an additional 1,198,043 shares during the last quarter. Panagora Asset Management Inc. raised its position in ThredUp by 30.2% in the 2nd quarter. Panagora Asset Management Inc. now owns 630,226 shares of the company’s stock worth $4,720,000 after buying an additional 146,245 shares during the last quarter. Connor Clark & Lunn Investment Management Ltd. lifted its stake in ThredUp by 153.6% during the 2nd quarter. Connor Clark & Lunn Investment Management Ltd. now owns 1,412,653 shares of the company’s stock valued at $10,581,000 after acquiring an additional 855,630 shares during the period. Finally, Y Intercept Hong Kong Ltd purchased a new stake in shares of ThredUp during the 2nd quarter valued at about $1,104,000. 89.08% of the stock is currently owned by hedge funds and other institutional investors.

About ThredUp

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.