The stock price of ThredUp Inc (NASDAQ: TDUP) has surged by 7.22 when compared to previous closing price of 0.78, but the company has seen a 11.81% gain in its stock price over the last five trading sessions. seekingalpha.com reported 2024-08-07 that TDUP’s Q2 2024 revenue, EBITDA loss, and net loss were worse than what the market had expected. ThredUp’s decision to part ways with its European business operations will improve its financial profile and throw up potential value-accretive capital allocation opportunities. I have lowered my rating for TDUP to a Hold; this is fair, taking into account both the company’s negative results and positive business restructuring moves.
Is It Worth Investing in ThredUp Inc (NASDAQ: TDUP) Right Now?
The 36-month beta value for TDUP is also noteworthy at 0.77. There are mixed opinions on the stock, with 4 analysts rating it as a “buy,” 2 rating it as “overweight,” 0 rating it as “hold,” and 0 rating it as “sell.”
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The public float for TDUP is 79.71M, and at present, short sellers hold a 6.60% of that float. The average trading volume of TDUP on August 29, 2024 was 737.09K shares.
TDUP’s Market Performance
The stock of ThredUp Inc (TDUP) has seen a 11.81% increase in the past week, with a -60.19% drop in the past month, and a -59.22% fall in the past quarter. The volatility ratio for the week is 8.47%, and the volatility levels for the past 30 days are at 18.08% for TDUP. The simple moving average for the past 20 days is -5.91% for TDUP’s stock, with a -55.13% simple moving average for the past 200 days.
Analysts’ Opinion of TDUP
Many brokerage firms have already submitted their reports for TDUP stocks, with Telsey Advisory Group repeating the rating for TDUP by listing it as a “Outperform.” The predicted price for TDUP in the upcoming period, according to Telsey Advisory Group is $3 based on the research report published on May 07, 2024 of the current year 2024.
Piper Sandler, on the other hand, stated in their research note that they expect to see TDUP reach a price target of $3.50, previously predicting the price at $12. The rating they have provided for TDUP stocks is “Neutral” according to the report published on July 22nd, 2022.
TDUP Trading at -42.15% from the 50-Day Moving Average
After a stumble in the market that brought TDUP to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -79.98% of loss for the given period.
Volatility was left at 18.08%, however, over the last 30 days, the volatility rate increased by 8.47%, as shares sank -59.46% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -50.23% lower at present.
During the last 5 trading sessions, TDUP rose by +11.15%, which changed the moving average for the period of 200-days by -58.24% in comparison to the 20-day moving average, which settled at $0.8276. In addition, ThredUp Inc saw -62.84% in overturn over a single year, with a tendency to cut further losses.
Insider Trading
Reports are indicating that there were more than several insider trading activities at TDUP starting from Paranksy Noam, who purchase 90,000 shares at the price of $0.80 back on Aug 27 ’24. After this action, Paranksy Noam now owns 246,444 shares of ThredUp Inc, valued at $72,000 using the latest closing price.
Nakache Patricia, the Director of ThredUp Inc, sale 63,933 shares at $2.05 during a trade that took place back on Jul 30 ’24, which means that Nakache Patricia is holding 0 shares at $131,063 based on the most recent closing price.
Stock Fundamentals for TDUP
Current profitability levels for the company are sitting at:
- -0.19 for the present operating margin
- 0.63 for the gross margin
The net margin for ThredUp Inc stands at -0.2. The total capital return value is set at -0.39. Equity return is now at value -61.04, with -24.91 for asset returns.
Based on ThredUp Inc (TDUP), the company’s capital structure generated 0.25 points at debt to capital in total, while cash flow to debt ratio is standing at -0.38. The debt to equity ratio resting at 0.34. The interest coverage ratio of the stock is -41.57.
Currently, EBITDA for the company is -45.55 million with net debt to EBITDA at -0.79. When we switch over and look at the enterprise to sales, we see a ratio of 0.39. The receivables turnover for the company is 54.82for trailing twelve months and the total asset turnover is 1.4. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.06.
Conclusion
In summary, ThredUp Inc (TDUP) has had a bad performance as of late. Analysts have bullish opinions on the stock, with some viewing it as a “buy” and others as a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
