Torrid (NYSE:CURV) Shares Gap Up on Better-Than-Expected Earnings

Shares of Torrid Holdings Inc. (NYSE:CURV) gapped up before the market opened on Friday following a better than expected earnings announcement. The stock had previously closed at $5.53, but opened at $6.94. Torrid shares last traded at $6.02, with a volume of 184,497 shares.

The company reported ($0.03) EPS for the quarter, topping analysts’ consensus estimates of ($0.07) by $0.04. Torrid had a negative return on equity of 7.68% and a net margin of 1.35%. The company had revenue of $275.60 million for the quarter, compared to the consensus estimate of $263.34 million. During the same quarter in the previous year, the business earned ($0.04) EPS. The company’s quarterly revenue was down 6.1% compared to the same quarter last year.

Analyst Upgrades and Downgrades

A number of research firms have recently commented on CURV. Bank of America began coverage on Torrid in a research note on Friday, December 6th. They issued a “buy” rating and a $5.00 price objective on the stock. Telsey Advisory Group boosted their price objective on Torrid from $5.00 to $6.00 and gave the stock a “market perform” rating in a research note on Friday. Morgan Stanley boosted their price objective on Torrid from $3.00 to $4.00 and gave the stock an “underweight” rating in a research note on Tuesday, January 21st. Finally, The Goldman Sachs Group lifted their target price on Torrid from $4.50 to $5.00 and gave the stock a “neutral” rating in a report on Friday. One equities research analyst has rated the stock with a sell rating, two have issued a hold rating and two have assigned a buy rating to the company. Based on data from MarketBeat, the stock has an average rating of “Hold” and a consensus price target of $5.00.

Hedge Funds Weigh In On Torrid

A number of hedge funds have recently modified their holdings of the stock. Nomura Holdings Inc. purchased a new position in shares of Torrid during the fourth quarter valued at $14,240,000. Centiva Capital LP purchased a new position in shares of Torrid during the third quarter valued at $3,930,000. Shay Capital LLC grew its holdings in shares of Torrid by 140.2% during the fourth quarter. Shay Capital LLC now owns 478,880 shares of the company’s stock valued at $2,505,000 after buying an additional 279,521 shares in the last quarter. Arrowstreet Capital Limited Partnership grew its holdings in shares of Torrid by 103.5% during the fourth quarter. Arrowstreet Capital Limited Partnership now owns 437,535 shares of the company’s stock valued at $2,288,000 after buying an additional 222,504 shares in the last quarter. Finally, Bank of America Corp DE grew its holdings in shares of Torrid by 4,794.2% during the fourth quarter. Bank of America Corp DE now owns 423,597 shares of the company’s stock valued at $2,215,000 after buying an additional 414,942 shares in the last quarter. 81.82% of the stock is currently owned by institutional investors and hedge funds.

Torrid Price Performance

The firm has a market cap of $639.54 million, a PE ratio of 40.70, a P/E/G ratio of 1.03 and a beta of 1.99. The business has a fifty day moving average price of $6.10 and a two-hundred day moving average price of $4.97.

About Torrid

Torrid Holdings Inc operates in women’s plus-size apparel and intimates market in North America. The company designs, develops, and merchandises its products under the Torrid, Torrid Curve, CURV, and Lovesick brand names. It is involved in the sale of tops, bottoms, dresses, denims, activewear, intimates, sleep wear, swim wear, and outerwear products; and non-apparel products comprising accessories, footwear, and beauty products.