ThredUp Shares Downgraded to Hold as Analysts Adjust Ratings

ThredUp Inc. (NASDAQ: TDUP) has received a downgrade from Wall Street Zen, which revised its rating from a buy to a hold. This change reflects a broader trend among analysts as they reassess ThredUp’s market performance. The downgrade was noted in a research note released on Saturday.

Other financial institutions have also evaluated ThredUp’s stock recently. On September 4, 2023, Needham & Company LLC maintained a hold rating for the company. Meanwhile, Northland Securities set a price target of $14.00 on August 5, 2023. In contrast, Telsey Advisory Group reaffirmed an outperform rating on November 4, 2023, with a target price of $12.00. Weiss Ratings took a more cautious stance, reissuing a sell rating on October 8, 2023. Roth Capital began coverage on October 29, 2023, assigning a buy rating with a target price of $11.00.

As it stands, analysts’ ratings for ThredUp are varied: two analysts have given it a strong buy, three a buy, one a hold, and one a sell. According to data from MarketBeat.com, the average rating sits at a “Moderate Buy,” with a consensus target price of $12.50.

ThredUp’s Latest Earnings Report

ThredUp released its latest earnings results on November 3, 2023. The company reported earnings per share (EPS) of ($0.03), surpassing analysts’ expectations of ($0.04) by $0.01. Revenue for the quarter was $82.16 million, exceeding the projected $77.34 million. Despite this positive news, ThredUp’s return on equity stood at a troubling -39.20%, alongside a net margin of -12.18%. Looking ahead, ThredUp has set guidance for Q4 2025 at an EPS of ($0.56) for the current fiscal year.

Insider Activity and Institutional Holdings

In related news, Director Daniel J. Nova purchased 65,000 shares of ThredUp on November 5, 2023, at an average cost of $8.04 per share, totaling $522,600. Following this acquisition, Nova’s holdings in ThredUp increased by 21.39% to 368,930 shares, valued at approximately $2.97 million. This transaction was disclosed in a filing with the Securities and Exchange Commission.

Notably, insiders own 27.00% of ThredUp’s stock. Additionally, large institutional investors have been active in modifying their positions in the company. Bank of America Corp DE increased its holdings by 42.6% in the fourth quarter, owning 77,456 shares valued at $108,000. Similarly, Bank of New York Mellon Corp raised its stake by 5.2% in the first quarter, now holding 188,338 shares worth $454,000.

Other investors, such as Victory Capital Management Inc. and Skandinaviska Enskilda Banken AB, have also adjusted their holdings, while Blair William & Co. IL significantly increased its position by 46.3%, now owning 2,969,725 shares valued at $7.16 million. Overall, institutional investors control 89.08% of ThredUp’s stock.

ThredUp, headquartered in Oakland, California, operates an online resale platform that primarily facilitates the buying and selling of secondhand apparel, shoes, and accessories. Established in 2009, the company aims to promote sustainable fashion practices through its platform.