Patricia Nakache, a director at ThredUp Inc. (NASDAQ:TDUP), recently sold shares in the company totaling approximately $1.26 million. The sale comes as the stock has shown impressive momentum, delivering a 58% return year-to-date. According to a Form 4 filing with the Securities and Exchange Commission, the transactions took place over several days, with shares sold at prices ranging from $2.26 to $2.28.
The transactions involved multiple sales of Class A Common Stock, with Nakache selling a total of 553,848 shares. These sales were conducted through Trinity Ventures X, L.P., Trinity X Entrepreneurs' Fund, L.P., and Trinity X Side-By-Side Fund, L.P., entities associated with Nakache.
The sales were part of a pre-arranged trading plan under Rule 10b5-1, adopted on March 15, 2024. This plan allows insiders to set up a predetermined schedule for buying or selling stocks to avoid any potential conflicts of interest.
Following the transactions, Nakache's direct ownership of shares in ThredUp Inc. remains at a minimal level through TVL Management Corp., with 47 shares held by this entity. The transactions highlight ongoing activity within the company's insider trading landscape, which is often closely watched by investors for potential insights into the company's future prospects. According to InvestingPro analysis, ThredUp currently appears undervalued, with additional insights and detailed valuation metrics available in the comprehensive Pro Research Report.
In other recent news, ThredUp Inc. has been making significant strides. The company reported a strong financial performance for the third quarter of 2024, with a 7% year-over-year increase in Gross Merchandise Value (GMV) to $457 million. ThredUp also highlighted a 9% increase in revenue and an adjusted EBITDA margin greater than 6% in the U.S. market, signifying a notable improvement in its domestic business.
In a strategic move, ThredUp divested its European business, Remix, through a management buyout, allowing the company to concentrate on its primary U.S. market. The company has also regained compliance with the minimum bid price requirements for continued listing on both The Nasdaq Global Select Market and the Long Term Stock Exchange (LTSE).
Analysts at Needham have maintained a Hold rating on ThredUp, following a discussion with the company's CEO James Reinhart and CFO Sean Sobers. They attribute ThredUp's positive performance to the recovery from previous self-inflicted issues and expect the company to continue driving efficiencies through investments in AI products and automation. These recent developments indicate ThredUp's commitment to growth and operational efficiency in the competitive market.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.