Torrid Holdings Stock Takes a Hit as Insiders Sell Shares

Torrid Holdings has experienced significant stock price declines, with shares dropping 36.9% and 33.9% in separate instances. CEO Lisa Harper has sold 350,000 shares, generating $1.16mln, while significant shareholder Sycamore Partners Torrid, L.L.C. has offloaded 15,680,908 shares, resulting in a sale worth $51.9mln. The company's technical indicators are bearish, and there is concern over its high P/E ratio, suggesting overvaluation. Analysts have maintained a neutral stance due to the mixed signals from strategic efforts and financial challenges.

Torrid Holdings Inc. (NYSE:CURV), a women's plus-size apparel retailer, has experienced significant stock price declines recently. Shares of the company dropped by 36.4% in the morning session on June 19, 2025, following the announcement of a public offering of 10 million shares of its common stock by selling stockholders. The offering was priced at $3.50 per share, and the company itself will not receive any proceeds from the sale [1].

This secondary offering can be concerning for investors as it increases the number of shares available for trade, potentially diluting the value of existing shares, and can signal that major investors are looking to sell their positions. Additionally, the company agreed to buy back $20 million of its stock from one of the selling stockholders, Sycamore Partners, at the same offering price. However, this repurchase was not enough to offset the negative sentiment from the large secondary offering, leading to a significant sell-off in the stock. The shares closed the day at $3.16, down 37.9% from the previous close [1].

Torrid's stock has been extremely volatile, with 57 moves greater than 5% over the last year. The biggest move was 7 months ago when the stock dropped 33.9% on the news that the company reported weak third-quarter results, which missed analysts' revenue and EBITDA expectations. The company observed soft sales trends in late September, which continued through October. Macroeconomic pressures, such as constrained consumer spending and adverse weather events, also created a difficult operating environment [1].

The company's CEO, Lisa M. Harper, sold 350,000 shares of the firm's stock in a transaction on Thursday, June 26, 2025. The stock was sold at an average price of $3.32, for a total value of $1,162,000.00. Following the completion of the transaction, the chief executive officer owned 5,266,453 shares in the company, valued at $17,484,623.96 [3]. This sale was a 6.23% decrease in their position.

Significant shareholder Sycamore Partners Torrid, L.L.C. has offloaded 15,680,908 shares, resulting in a sale worth $51.9mln. The company's technical indicators are bearish, and there is concern over its high P/E ratio, suggesting overvaluation. Analysts have maintained a neutral stance due to the mixed signals from strategic efforts and financial challenges [2].

Based on the one-year price targets offered by 5 analysts, the average target price for Torrid Holdings Inc (CURV) is $5.20 with a high estimate of $7.00 and a low estimate of $4.00. The average target implies an upside of 61.99% from the current price of $3.21. The consensus recommendation from 6 brokerage firms is currently 3.0, indicating a "Hold" status [2].

The company's key business developments include a decline in comparable store sales by 3.5%, a decrease in gross profit from $115.4 million to $101.4 million, and a reduction in net income from $12.2 million to $5.9 million. The company plans to close approximately 180 stores in 2025 and expects a sizable sales growth deceleration in the second quarter, partly due to the pause in the shoe business and ongoing consumer price sensitivity [2].

Investors should carefully consider these developments and the company's future prospects before making any investment decisions. The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. However, the current volatility and mixed signals from strategic efforts and financial challenges suggest a cautious approach.

References:
[1] https://finance.yahoo.com/news/why-torrid-curv-shares-falling-151107602.html
[2] https://www.gurufocus.com/news/2945813/torrid-curv-shares-fall-sharply-by-369-curv-stock-news
[3] https://www.marketbeat.com/instant-alerts/lisa-m-harper-sells-350000-shares-of-torrid-holdings-inc-nysecurv-stock-2025-06-30/