Patricia Nakache, a director at ThredUp Inc. (NASDAQ:TDUP), reported selling shares of the company's Class A common stock, according to a recent SEC filing. On December 9, Nakache sold a total of 41,676 shares at a weighted average price of $1.77 per share, amounting to $73,766. The transactions were carried out through entities associated with Trinity Ventures, where Nakache holds a management position. The sale comes as ThredUp, currently valued at $204 million, shows strong recent momentum with impressive returns over the past three months, according to InvestingPro data.
The sale was executed as part of a pre-arranged trading plan, known as a Rule 10b5-1 plan, which was adopted earlier this year in March. The plan allows insiders to set up a predetermined schedule for selling stocks, helping to avoid any accusations of insider trading.
Following these transactions, Nakache retains indirect ownership of additional shares through various Trinity Ventures funds, though her direct holdings have been reduced.
In other recent news, ThredUp Inc. has reported strong financial performance for the third quarter of 2024, with a 7% year-over-year increase in Gross Merchandise Value (GMV), reaching $457 million. This growth is largely attributed to gains in new buyer acquisition and retention. Additionally, the company's adjusted EBITDA has remained positive for five consecutive quarters. ThredUp has also revised its fourth-quarter U.S. revenue outlook to between $58 million and $60 million, with full-year projections of $250.8 million to $252.8 million.
In a significant strategic move, ThredUp has divested its European business, Remix, through a management buyout, allowing the company to concentrate on its primary U.S. market. This development follows ThredUp's successful regaining of compliance with the minimum bid price requirements for continued listing on both The Nasdaq Global Select Market and the Long Term Stock Exchange (LTSE).
These recent developments come as ThredUp continues to maintain impressive gross profit margins of 68%. Analysts from InvestingPro have indicated that despite the company's strong performance, the stock is currently trading below its Fair Value. As ThredUp continues to prioritize its U.S. market, investors will be watching closely for further developments.
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