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

ThredUp Inc. (NASDAQ:TDUP)’s stock price fell 6.4% during trading on Wednesday . The company traded as low as $6.48 and last traded at $6.4050. Approximately 859,676 shares changed 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 analysts have recently weighed in on the stock. Weiss Ratings restated a “sell (e+)” rating on shares of ThredUp in a research note on Wednesday, June 24th. Wells Fargo & Company lowered their target price on shares of ThredUp from $10.00 to $8.00 and set an “overweight” rating on the stock in a research note on Tuesday, May 5th. Telsey Advisory Group dropped their target price 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. Finally, TD Cowen upped their price target on shares of ThredUp from $5.00 to $5.70 and gave the company a “buy” rating in a report on Tuesday, May 5th. Two analysts have rated the stock with a Strong Buy rating, three have given a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, ThredUp presently has an average rating of “Moderate Buy” and an average price target of $9.14.

ThredUp Price Performance

The stock’s 50-day moving average is $5.27 and its 200-day moving average is $4.89. The firm has a market cap of $847.79 million, a P/E ratio of -41.06 and a beta of 1.97. The company has a quick ratio of 0.95, a current ratio of 0.95 and a debt-to-equity ratio of 0.30.

ThredUp (NASDAQ:TDUP) last issued 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 net margin of 6.68% and a negative return on equity of 36.11%. The firm had revenue of $81.67 million during the quarter, compared to the consensus estimate of $80.17 million. As a group, equities analysts anticipate that ThredUp Inc. will post -0.09 EPS for the current fiscal year.

Insider Transactions at ThredUp

In related news, COO Christopher Homer sold 61,578 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 $272,790.54. Following the transaction, the chief operating officer directly owned 1,301,843 shares in the company, valued at $5,767,164.49. The trade was a 4.52% decrease in their ownership of the stock. The sale 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, CFO Sean Sobers sold 45,554 shares of the company’s stock in a transaction that occurred on Tuesday, June 2nd. The shares were sold at an average price of $4.43, for a total value of $201,804.22. Following the completion of the transaction, the chief financial officer directly owned 572,523 shares of the company’s stock, valued at approximately $2,536,276.89. This trade represents a 7.37% decrease in their position. 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. 23.10% of the stock is currently owned by corporate insiders.

Institutional Trading of ThredUp

A number of institutional investors and hedge funds have recently modified their holdings of TDUP. Divisadero Street Capital Management LP acquired a new stake in ThredUp during the third quarter worth $9,396,000. MYDA Advisors LLC acquired a new position in shares of ThredUp in the 4th quarter valued at $2,173,000. Zweig DiMenna Associates LLC acquired a new position in shares of ThredUp in the 4th quarter valued at $3,441,000. Penn Capital Management Company LLC bought a new position in shares of ThredUp during the 4th quarter worth about $1,567,000. Finally, Needham Investment Management LLC lifted its holdings in shares of ThredUp by 7.0% during the 4th quarter. Needham Investment Management LLC now owns 6,075,000 shares of the company’s stock worth $38,819,000 after acquiring an additional 400,000 shares during the period. 89.08% of the stock is currently owned by 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.