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

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

Wall Street Analyst Weigh In

TDUP has been the subject of several research analyst reports. 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. 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 report on Tuesday, May 5th. Weiss Ratings restated a “sell (e+)” rating on shares of ThredUp in a report on Wednesday, June 24th. Finally, Telsey Advisory Group reduced their price objective on ThredUp from $9.00 to $7.00 and set an “outperform” rating for the company in a report on Tuesday, May 5th. Two research 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 assigned a Sell rating to the company. According to data from MarketBeat, ThredUp currently has a consensus rating of “Moderate Buy” and a consensus target price of $9.14.

ThredUp Stock Down 9.7%

The stock has a fifty day moving average price of $5.17 and a two-hundred day moving average price of $4.90. The company has a market cap of $796.82 million, a price-to-earnings ratio of -38.65 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 released its quarterly earnings results on Monday, May 4th. The company reported ($0.05) EPS for the quarter, meeting the consensus estimate of ($0.05). ThredUp had a negative net margin of 6.68% and a negative return on equity of 36.11%. The business had revenue of $81.67 million for the quarter, compared to the consensus estimate of $80.17 million. As a group, sell-side analysts expect that ThredUp Inc. will post -0.09 EPS for the current year.

Insider Buying and Selling

In other news, COO Christopher Homer sold 61,578 shares of the firm’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 transaction of $272,790.54. Following the transaction, the chief operating officer directly owned 1,301,843 shares of the company’s stock, valued at approximately $5,767,164.49. This trade represents a 4.52% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed 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 ThredUp stock in a transaction that occurred 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 completion of the sale, the chief financial officer owned 572,523 shares of the company’s stock, valued at approximately $2,536,276.89. The trade was a 7.37% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 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 Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Bank of America Corp DE lifted its position in ThredUp by 42.6% during the fourth quarter. Bank of America Corp DE now owns 77,456 shares of the company’s stock worth $108,000 after purchasing an additional 23,156 shares during the period. Cubist Systematic Strategies LLC increased its holdings in ThredUp by 7.6% in the 1st quarter. Cubist Systematic Strategies LLC now owns 37,516 shares of the company’s stock valued at $90,000 after buying an additional 2,659 shares during the period. AQR Capital Management LLC raised its position in shares of ThredUp by 185.9% in the 1st quarter. AQR Capital Management LLC now owns 94,652 shares of the company’s stock valued at $228,000 after buying an additional 61,547 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its position in shares of ThredUp by 4.5% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 47,705 shares of the company’s stock valued at $115,000 after buying an additional 2,034 shares in the last quarter. Finally, Jane Street Group LLC lifted its holdings in shares of ThredUp by 39.2% during the 1st quarter. Jane Street Group LLC now owns 92,376 shares of the company’s stock worth $223,000 after acquiring an additional 25,995 shares during the period. Institutional investors and hedge funds 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.