Wall Street Zen Downgrades ThredUp (NASDAQ:TDUP) to Hold

ThredUp (NASDAQ:TDUP) was downgraded by analysts at Wall Street Zen from a “buy” rating to a “hold” rating in a research report issued on Saturday.

Other research analysts have also recently issued research reports about the stock. Needham & Company LLC restated a “hold” rating on shares of ThredUp in a research report on Thursday, September 4th. Roth Capital started coverage on shares of ThredUp in a research note on Wednesday, October 29th. They set a “buy” rating and a $11.00 price target for the company. Telsey Advisory Group reaffirmed an “outperform” rating and set a $12.00 target price on shares of ThredUp in a report on Tuesday, December 9th. Finally, Weiss Ratings reiterated a “sell (d-)” rating on shares of ThredUp in a report on Monday, December 8th. Two equities 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 given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $12.50.

ThredUp Stock Down 1.8%

Shares of TDUP opened at $7.48 on Friday. The company has a quick ratio of 0.92, a current ratio of 0.92 and a debt-to-equity ratio of 0.26. The stock has a market cap of $936.05 million, a price-to-earnings ratio of -24.93 and a beta of 1.71. ThredUp has a 12 month low of $1.21 and a 12 month high of $12.28. The company has a 50-day moving average price of $8.15 and a two-hundred day moving average price of $8.76.

ThredUp (NASDAQ:TDUP) last posted its earnings results on Monday, November 3rd. The company reported ($0.03) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.04) by $0.01. ThredUp had a negative net margin of 12.18% and a negative return on equity of 39.20%. The company had revenue of $82.16 million during the quarter, compared to analysts’ expectations of $77.34 million. Equities analysts predict that ThredUp will post -0.56 EPS for the current fiscal year.

Insider Buying and Selling

In related news, Director Daniel J. Nova acquired 65,000 shares of the company’s stock in a transaction dated Wednesday, November 5th. The shares were bought at an average cost of $8.04 per share, with a total value of $522,600.00. Following the completion of the transaction, the director directly owned 368,930 shares of the company’s stock, valued at $2,966,197.20. This trade represents a 21.39% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, COO Christopher Homer sold 68,358 shares of the company’s stock in a transaction dated Tuesday, December 2nd. The shares were sold at an average price of $7.42, for a total transaction of $507,216.36. Following the completion of the transaction, the chief operating officer owned 1,170,567 shares in the company, valued at approximately $8,685,607.14. This trade represents a 5.52% decrease in their position. The disclosure for this sale is available in the SEC filing. 27.00% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On ThredUp

Several institutional investors and hedge funds have recently modified their holdings of TDUP. Bank of America Corp DE boosted its stake in shares of ThredUp by 42.6% in the fourth quarter. Bank of America Corp DE now owns 77,456 shares of the company’s stock valued at $108,000 after buying an additional 23,156 shares during the period. Nuveen LLC bought a new position in shares of ThredUp in the 1st quarter valued at $571,000. American Century Companies Inc. acquired a new position in shares of ThredUp during the 1st quarter worth $57,000. Walleye Capital LLC bought a new position in ThredUp in the first quarter valued at about $175,000. Finally, MetLife Investment Management LLC bought a new position in ThredUp in the first quarter valued at about $120,000. 89.08% of the stock is currently owned by institutional investors and hedge funds.

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.