Torrid (NYSE:CURV) Shares Gap Up on Strong Earnings

Torrid Holdings Inc. (NYSE:CURV) shares gapped up prior to trading on Friday after the company announced better than expected quarterly earnings. 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 changing hands.

The company reported ($0.03) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.07) by $0.04. The business had revenue of $275.60 million for the quarter, compared to the consensus estimate of $263.34 million. Torrid had a net margin of 1.35% and a negative return on equity of 7.68%. The company’s revenue was down 6.1% compared to the same quarter last year. During the same period last year, the firm posted ($0.04) earnings per share.

Analysts Set New Price Targets

Several equities research analysts have commented on the company. 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. Bank of America began coverage on Torrid in a report on Friday, December 6th. They issued a “buy” rating and a $5.00 price objective on the stock. The Goldman Sachs Group raised their price target on shares of Torrid from $4.50 to $5.00 and gave the stock a “neutral” rating in a research note on Friday. Finally, Morgan Stanley increased their price objective on shares of Torrid from $3.00 to $4.00 and gave the company an “underweight” rating in a report on Tuesday, January 21st. One equities research analyst has rated the stock with a sell rating, two have issued a hold rating and two have given a buy rating to the company’s stock. According to MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus price target of $5.00.

Institutional Investors Weigh In On Torrid

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

Torrid Stock Performance

The stock has a market capitalization of $603.09 million, a price-to-earnings ratio of 38.38, a P/E/G ratio of 1.03 and a beta of 1.99. The business has a 50-day moving average of $6.10 and a 200-day moving average of $4.95.

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.