Insider Sale at Torrid Holdings Raises Questions

Lisa Harper, CEO of Torrid Holdings, conducted a remarkable transaction on September 13, 2024: she sold 498,087 shares of the company. This sale was recently documented in an SEC filing. Following this transaction, Harper still owns 5,596,314 shares of Torrid Holdings. Torrid Holdings operates as a direct marketer of clothing and accessories in North America. The company focuses on plus-size women's fashion and is known for giving its customers a sense of confidence and style through well-fitting clothing. Over the past year, the CEO has sold a total of 498,087 shares and made no purchases. This latest sale fits into a larger trend for the company, where more insider sales than purchases have been recorded. Specifically, there have been four insider sales and only one insider purchase in the past twelve months. On the day of the sale, Torrid Holdings shares were trading at a price of $3.80 per unit, giving the company a market capitalization of approximately $419.768 million. The company's price-earnings ratio stands at 30.08, above the industry average of 17.58. According to GF Value, the intrinsic value of Torrid Holdings is estimated at $4.70 per share, making the stock appear slightly undervalued with a price-GF-Value ratio of 0.81. The GF Value is calculated based on historical trading multiples, a GuruFocus adjustment factor, and future business expectations provided by Morningstar analysts. This insider sale could attract the attention of current and potential investors, as it provides insights into the management's perspective on stock valuation and the company's future developments.