Torrid Holdings Inc. (NYSE: CURV) has received a consensus recommendation of “Reduce” from eight research firms currently covering the stock, according to MarketBeat. The analysts’ assessments reflect a cautious outlook, with four firms issuing sell ratings, three recommending a hold, and only one firm providing a buy rating. The average price target for the stock over the next year is set at $1.44.
Analysts have closely monitored Torrid in recent weeks, leading to significant adjustments in their ratings and price forecasts. Notably, on December 6, Wall Street Zen downgraded the stock from a “hold” to a “sell.” Earlier, Bank of America revised its price target from $6.00 to $2.00 while maintaining a “buy” rating on December 4. The Goldman Sachs Group further decreased its price target from $1.50 to $0.75, categorizing the stock as a sell on December 5. Additionally, William Blair shifted its rating from “outperform” to “market perform” on October 23, and Weiss Ratings reiterated a “sell (d)” rating on October 8.
Quarterly Earnings Report and Insider Activity
Torrid recently reported its quarterly earnings on December 3, revealing a loss of ($0.06) per share, missing analysts’ expectations of ($0.01) by $0.05. The company reported revenue of $235.15 million, falling short of the anticipated $239.90 million. The prior year’s quarter had a similar earnings per share of ($0.01). Analysts foresee that Torrid will achieve an earnings per share of 0.14 for the current fiscal year.
In related news, major shareholder Fund 1 Investments, LLC, sold 25,000 shares of Torrid on December 3 at an average price of $1.31, totaling $32,750.00. Following this transaction, the firm retains 9,904,856 shares valued at approximately $12,975,361.36, marking a 0.25% reduction in ownership. Insiders now hold 5.85% of the company’s stock.
Institutional Investors Take Action
Several institutional investors have made notable changes to their positions in Torrid recently. Deutsche Bank AG entered a new stake in the company valued at $68,000 during the first quarter. Nuveen LLC also acquired a new stake valued at approximately $221,000. Nomura Holdings Inc. increased its holdings by 19.5%, now owning 3,254,537 shares worth about $17,835,000 after adding 531,713 shares.
Additionally, MIRAE ASSET GLOBAL ETFs HOLDINGS Ltd. expanded its position by 338.3%, now holding 49,039 shares valued at $269,000. Rhumbline Advisers also increased its holdings by 27.1%, owning 21,886 shares worth $120,000 after acquiring an additional 4,673 shares. Overall, institutional investors control 81.82% of Torrid’s stock.
Torrid, which trades under the ticker CURV on the New York Stock Exchange, specializes in plus-size women’s fashion. Founded in 2001 as a division of Hot Topic, the company has established itself as a leader in providing trend-driven apparel for women sizes 10 to 30. Its product range includes casual wear, denim, activewear, intimates, and accessories, catering to a demographic that has historically faced challenges in finding stylish options at mainstream retailers. Over time, Torrid has evolved from a mall-based retailer into a multichannel business, adapting to the changing landscape of retail.
