ThredUp (NASDAQ:TDUP) Stock Price Down 7.1% – Should You Sell?

ThredUp Inc. (NASDAQ:TDUP) shares were down 7.1% on Wednesday . The company traded as low as $6.02 and last traded at $5.9740. Approximately 607,995 shares changed hands during mid-day trading, a decline of 73% from the average session volume of 2,226,186 shares. The stock had previously closed at $6.43.

Analysts Set New Price Targets

Several brokerages have commented on TDUP. Wells Fargo & Company decreased 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. Telsey Advisory Group cut their price target 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 restated a “sell (e+)” rating on shares of ThredUp in a research report on Wednesday, June 24th. Finally, TD Cowen raised their price objective on shares of ThredUp from $5.00 to $5.70 and gave the stock a “buy” rating in a research note on Tuesday, May 5th. One equities research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average price target of $9.14.

ThredUp Price Performance

The company has a current ratio of 0.95, a quick ratio of 0.95 and a debt-to-equity ratio of 0.30. The stock has a 50-day simple moving average of $5.57 and a 200 day simple moving average of $4.89. The stock has a market capitalization of $768.57 million, a price-to-earnings ratio of -37.23 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 (EPS) for the quarter, hitting analysts’ consensus estimates of ($0.05). The business had revenue of $81.67 million during the quarter, compared to analyst estimates of $80.17 million. ThredUp had a negative net margin of 6.68% and a negative return on equity of 36.11%. On average, equities research analysts forecast that ThredUp Inc. will post -0.09 EPS for the current fiscal year.

Insiders Place Their Bets

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

Institutional Investors Weigh In On ThredUp

A number of hedge funds and other institutional investors have recently made changes to their positions in TDUP. Vanguard Group Inc. lifted its holdings in shares of ThredUp by 8.9% during the 4th quarter. Vanguard Group Inc. now owns 7,530,479 shares of the company’s stock valued at $48,120,000 after buying an additional 616,052 shares during the last quarter. Needham Investment Management LLC increased its holdings in ThredUp by 7.0% in the fourth quarter. Needham Investment Management LLC now owns 6,075,000 shares of the company’s stock worth $38,819,000 after buying an additional 400,000 shares during the last quarter. Marshall Wace LLP raised its position in ThredUp by 11.8% during the fourth quarter. Marshall Wace LLP now owns 4,825,251 shares of the company’s stock valued at $30,833,000 after acquiring an additional 509,195 shares in the last quarter. Arrowstreet Capital Limited Partnership raised its position in ThredUp by 19.0% during the first quarter. Arrowstreet Capital Limited Partnership now owns 2,965,484 shares of the company’s stock valued at $9,727,000 after acquiring an additional 473,907 shares in the last quarter. Finally, State Street Corp lifted its stake in ThredUp by 26.2% in the fourth quarter. State Street Corp now owns 2,886,417 shares of the company’s stock valued at $18,444,000 after acquiring an additional 598,793 shares during the last quarter. 89.08% of the stock is owned by hedge funds and other institutional investors.

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.