5 Investors Betting Big on ThredUp (TDUP) Stock Now

  • ThredUp (TDUP) reported a 2023 revenue guidance of $315 million at the midpoint, while analysts were expecting $302.2 million.
  • Trinity TVL X is the largest shareholder of the company, with a 9.21 million share stake.
  • TDUP stock is up by over 110% year-to-date.
TDUP stock - 5 Investors Betting Big on ThredUp (TDUP) Stock Now

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ThredUp (NASDAQ:TDUP) stock is up by over 50% after the online clothing resale company reported its fourth quarter and full-year 2022 earnings. For Q4, revenue tallied in at $71.3 million, which fell 2% year-over-year (YOY) but still beat the Zacks Consensus Estimate by 13.10%. For 2022, revenue totaled $288.4 million, up 15% from a year ago. Furthermore, earnings per share (EPS) for the fourth quarter was a loss of 19 cents, while Zacks expected a loss of 20 cents. This was ThredUp’s first EPS beat over the last four quarters.

“Many of our customers pulled back on overall spend or were able to shop new apparel at bargain prices last year,” said CEO James Reinhart. “We think those dynamics are largely behind us and we see an opportunity to earn more wallet share in the year ahead.”

Meanwhile, ThredUp ended the year with 42 client brands for its resale-as-a-service (RaaS) strategy and expects to launch new collaborations with brands like J. Crew and Kate Spade New York. On top of that, it also opened a new distribution center last December that will increase overall network storage capacity by 150% at total capacity.

For guidance, the company expects 2023 revenue of between $310 and $320 million, while analysts predict $302.2 million. Gross margin is expected to be between 66% and 68% during the year, while adjusted earnings before interest, taxes, deductions, and amortizations (EBITDA) loss margin is forecasted to be between 6% to 8%.

5 Investors Betting Big on TDUP Stock

Tracking institutional ownership is important, as these large investors provide liquidity and support for stocks. During Q4, 81 13F filers disclosed a stake in TDUP, a large decline of 28 filers compared to the prior quarter. On the other hand, total 13F ownership increased to 59.72 million shares, up from 57.52 million shares quarter-over-quarter.

The institutional put/call ratio for TDUP currently sits at 2.39, up from 0.3. That’s equivalent to about 84,500 put options and 35,300 call options, implying a bearish options stance. With that in mind, let’s take a look at the largest shareholders of ThredUp:

  1. Trinity TVL X: 9.21 million shares. Trinity disclosed its entire position during Q4.
  2. Capital World Investors: 8.06 million shares. Capital World acquired 1.91 million shares during Q4.
  3. CEO James Reinhart: 7.92 million shares. Reinhart’s stake is accurate as of Q4, and he last reported acquiring 1.13 million shares.
  4. Goldman Sachs (NYSE:GS): 7.87 million shares. Goldman acquired 59,043 shares during Q4.
  5. Highland Management Partners: 7.63 million shares. Highland acquired 10,714 shares during Q4.

On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Eddie Pan specializes in institutional investments and insider activity. He writes for InvestorPlace’s Today’s Market team, which centers on the latest news involving popular stocks.

Article printed from InvestorPlace Media, https://investorplace.com/2023/03/5-investors-betting-big-on-thredup-tdup-stock-now/.

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