ThredUp (NASDAQ:TDUP) Stock Gets Downgrade from Northland Securities

ThredUp (NASDAQ:TDUP) was downgraded by research analysts at Northland Securities from an “outperform” rating to a “market perform” rating in a research note issued to investors on Thursday, Briefing.com reports. They currently have a $2.00 price objective on the stock. Northland Securities‘s price objective would indicate a potential downside of 8.68% from the stock’s previous close.

TDUP has been the topic of a number of other research reports. Weiss Ratings raised ThredUp from a “sell (e+)” rating to a “sell (d-)” rating in a research report on Tuesday. William Blair lowered shares of ThredUp from an “outperform” rating to a “market perform” rating in a research note on Thursday. Roth Capital reaffirmed a “buy” rating and issued a $6.50 target price on shares of ThredUp in a report on Thursday, August 6th. TD Cowen assumed coverage on shares of ThredUp in a research note on Friday, October 30th. They issued a “strong-buy” rating for the company. Finally, Telsey Advisory Group lowered their price target on shares of ThredUp from $7.00 to $6.00 and set an “outperform” rating for the company in a report on Thursday, August 6th. One research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $5.64.

ThredUp Stock Performance

NASDAQ:TDUP opened at $2.19 on Thursday. The company has a fifty day simple moving average of $2.36 and a two-hundred day simple moving average of $4.11. The company has a market cap of $287.61 million, a price-to-earnings ratio of -12.88 and a beta of 2.18. The company has a quick ratio of 0.99, a current ratio of 0.99 and a debt-to-equity ratio of 0.29. ThredUp has a 52 week low of $1.91 and a 52 week high of $8.76.

ThredUp (NASDAQ:TDUP) last posted its quarterly earnings data on Wednesday, November 4th. The company reported ($0.04) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.05) by $0.01. The business had revenue of $88.23 million for the quarter, compared to analyst estimates of $88.05 million. ThredUp had a negative return on equity of 37.30% and a negative net margin of 6.65%. As a group, equities analysts anticipate that ThredUp will post -0.17 earnings per share for the current fiscal year.

Insider Buying and Selling

In other ThredUp news, CFO Sean Sobers sold 44,559 shares of the stock in a transaction that occurred on Wednesday, September 2nd. The shares were sold at an average price of $2.58, for a total value of $114,962.22. Following the transaction, the chief financial officer directly owned 613,503 shares in the company, valued at $1,582,837.74. This represents a 6.77% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, COO Christopher Homer sold 60,230 shares of the firm’s stock in a transaction that occurred on Wednesday, September 2nd. The stock was sold at an average price of $2.58, for a total transaction of $155,393.40. Following the sale, the chief operating officer directly owned 1,363,358 shares in the company, valued at approximately $3,517,463.64. The trade was a 4.23% decrease in their position. 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. Corporate insiders own 23.10% of the company’s stock.

Institutional Investors Weigh In On ThredUp

Institutional investors and hedge funds have recently bought and sold shares of the stock. Readystate Asset Management LP boosted its stake in ThredUp by 197.4% in the second quarter. Readystate Asset Management LP now owns 1,508,736 shares of the company’s stock valued at $10,335,000 after acquiring an additional 1,001,482 shares in the last quarter. Empowered Funds LLC acquired a new stake in shares of ThredUp during the first quarter worth about $1,338,000. Zweig DiMenna Associates LLC increased its position in shares of ThredUp by 170.1% during the first quarter. Zweig DiMenna Associates LLC now owns 1,454,500 shares of the company’s stock worth $4,771,000 after purchasing an additional 916,000 shares in the last quarter. Arrowstreet Capital Limited Partnership lifted its holdings in shares of ThredUp by 19.0% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 2,965,484 shares of the company’s stock valued at $9,727,000 after purchasing an additional 473,907 shares during the last quarter. Finally, CI Investments Inc. purchased a new stake in shares of ThredUp in the 1st quarter valued at about $5,937,000. 89.08% of the stock is owned by hedge funds and other institutional investors.

About ThredUp

ThredUp Inc operates an online resale platform for secondhand apparel, shoes and accessories. Through its marketplace, consumers can shop for pre-owned women’s and children’s clothing and related products, while individuals can send in unwanted items for resale through the company’s “Clean Out” service.

ThredUp manages much of the resale process, including receiving, inspecting, photographing, pricing, listing and fulfilling merchandise. The company also provides resale-as-a-service solutions that enable brands and retailers to offer or support secondhand programs, helping them participate in the growing circular fashion market.

Founded in 2009, ThredUp initially focused on children’s clothing before expanding into women’s apparel and broader fashion categories.