Stock Analysis
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- NYSE:CURV
Insiders probably made the right decision selling US$24m worth of shares earlier this year as Torrid Holdings Inc.'s (NYSE:CURV)) stock dips by 6.7%.
Insiders seem to have made the most of their holdings by selling US$24m worth of Torrid Holdings Inc. (NYSE:CURV) stock at an average sell price of US$19.64 during the past year. The company's market worth decreased by US$68m over the past week after the stock price dropped 6.7%, although insiders were able to minimize their losses
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for Torrid Holdings
The Last 12 Months Of Insider Transactions At Torrid Holdings
In the last twelve months, the biggest single sale by an insider was when the Director, Lisa Harper, sold US$14m worth of shares at a price of US$19.64 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of US$8.68. So it may not shed much light on insider confidence at current levels.
Torrid Holdings insiders didn't buy any shares over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 9.1% of Torrid Holdings shares, worth about US$87m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Torrid Holdings Tell Us?
The fact that there have been no Torrid Holdings insider transactions recently certainly doesn't bother us. Our analysis of Torrid Holdings insider transactions leaves us cautious. But it's good to see that insiders own shares in the company. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For instance, we've identified 3 warning signs for Torrid Holdings (2 are a bit unpleasant) you should be aware of.
But note: Torrid Holdings may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
What are the risks and opportunities for Torrid Holdings?
Torrid Holdings Inc. operates in women’s plus-size apparel and intimates market in North America.
Rewards
Price-To-Earnings ratio (9.7x) is below the US market (15.2x)
Earnings are forecast to grow 5.66% per year
Became profitable this year
Risks
Interest payments are not well covered by earnings
Highly volatile share price over the past 3 months
Negative shareholders equity
Further research on
Torrid Holdings
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
About NYSE:CURV
Torrid Holdings
Torrid Holdings Inc. operates in women’s plus-size apparel and intimates market in North America.
Slightly overvalued with questionable track record.
