In a recent transaction, Patricia Nakache, a director of ThredUp Inc. (NASDAQ:TDUP), a retail-catalog and mail-order houses company, sold a significant number of shares, according to a Form 4 filing with the Securities and Exchange Commission. Nakache sold a total of 72,293 shares of Class A Common Stock over three days, from May 28 to May 30, 2024, with the total proceeds exceeding $150,000.
The shares were sold at weighted average prices ranging from $2.07 to $2.11. Specifically, on May 28, 22,618 shares were sold at an average price of $2.11; on May 29, 20,336 shares were sold at an average price of $2.07; and on May 30, 28,917 shares were sold at an average price of $2.08. The transactions were executed pursuant to a Rule 10b5-1 trading plan adopted on March 15, 2024, which allows insiders to sell shares at predetermined times to avoid any accusations of insider trading.
The sales occurred alongside conversions of Class B Common Stock into Class A Common Stock, which were completed at no additional consideration. These conversions did not affect the total number of shares owned by Nakache, as they were simply a change in the class of stock.
The Form 4 filing also notes that Nakache is a Management Member of Trinity Ventures X, L.P. and other related funds, which hold the shares. She shares voting and dispositive power over these shares with other management members but disclaims beneficial ownership except to the extent of her pecuniary interest.
After these transactions, the direct holdings in Class A Common Stock reported by Nakache appear to be minimal, with an indirect ownership through Trinity Ventures X, L.P. and related funds. This move by a high-level insider may be of interest to investors who follow insider trading patterns as part of their investment strategy.
InvestingPro Insights
As investors digest the news of Patricia Nakache's recent share sale in ThredUp Inc. (NASDAQ:TDUP), examining the company's financial health and market performance can provide additional context. According to InvestingPro data, ThredUp has a market capitalization of approximately $226.03 million. Despite a challenging retail environment, the company has managed to maintain impressive gross profit margins, with the last twelve months as of Q1 2024 showing a gross profit of $218.04 million and a gross profit margin of 66.95%. This is a testament to the company's ability to manage its cost of goods sold effectively.
However, ThredUp is not without its challenges. Analysts are not optimistic about the company's profitability in the near term, and the valuation suggests a poor free cash flow yield, which may concern investors looking for companies with strong cash generation capabilities. Additionally, the company's price-to-earnings (P/E) ratio stands at -3.32 for the same period, reflecting investor skepticism about future earnings potential.
For those interested in the company's trading dynamics, ThredUp's shares have experienced a strong return over the last month, with a 26.88% price total return. This could indicate a growing investor confidence or a reaction to recent company developments. It's worth noting, however, that ThredUp does not pay dividends, which might be a factor for income-focused investors to consider.
For those seeking a deeper dive into ThredUp's financials and market performance, InvestingPro offers additional insights. There are currently six more InvestingPro Tips available, which can be accessed by visiting the InvestingPro platform. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, and gain comprehensive access to data that can inform your investment decisions.
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