Patricia Nakache, a director at ThredUp Inc. (NASDAQ:TDUP), recently sold a significant portion of her holdings in the company. The online resale platform, currently valued at $199 million, maintains impressive gross profit margins of 68%. According to a filing with the Securities and Exchange Commission, Nakache sold shares totaling $13,813. The transactions were executed over two days, December 4 and December 5, at a weighted average price of $1.77 per share.
The sales involved multiple transactions through various entities associated with Nakache, including Trinity Ventures X, L.P., Trinity X Entrepreneurs' Fund, L.P., and Trinity X Side-By-Side Fund, L.P. Following these transactions, Nakache retains indirect ownership of 18,980 shares through Trinity Ventures X, L.P., 188 shares through Trinity X Entrepreneurs' Fund, L.P., and 107 shares through Trinity X Side-By-Side Fund, L.P. InvestingPro data shows the stock has demonstrated strong returns over the past three months, despite historically high price volatility.
These sales were conducted under a pre-arranged Rule 10b5-1 trading plan, which allows insiders to set up a predetermined schedule for selling stocks to avoid potential conflicts of interest. The filing notes that Nakache did not participate in the consideration or adoption of this trading plan. For deeper insights into ThredUp's financial health and valuation metrics, investors can access comprehensive analysis through InvestingPro, which offers exclusive access to over 10 additional ProTips and detailed financial metrics.
Investors and analysts will be watching closely to see how these sales might impact ThredUp's stock performance and any potential implications for the company's strategy moving forward. According to InvestingPro's Fair Value analysis, the stock currently appears undervalued, suggesting potential upside despite recent insider selling activity.
In other recent news, ThredUp Inc. has reported robust financial results for the third quarter of 2024, surpassing expectations and revising its forecasts upward for the fourth quarter and the full year. The company's Gross Merchandise Value (GMV) saw a 7% year-over-year increase, reaching $457 million, primarily driven by gains in new buyer acquisition and retention. ThredUp is divesting its European business, Remix, in a management buyout led by Remix General Manager Florin Filote, enabling ThredUp to concentrate on its primary U.S. market.
ThredUp, which maintains impressive gross profit margins of 68% on an annual revenue of $314 million, is transitioning to a consignment model that now accounts for over 90% of its revenue. Despite a decrease in consolidated revenue and active U.S. buyers, the company's gross margin has improved. Innovative AI features are expected to enhance customer engagement and drive sales growth.
These are recent developments, and ThredUp expects to continue its progress into 2025, projecting positive free cash flow and EBITDA margins similar to 2024. The company's focus post-EU divestiture is on enhancing the U.S. business, with investments in operational infrastructure and AI innovations aimed at improving buyer acquisition and retention.
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