Form 4: ThredUp Director Sells Shares Under 10b5-1 Plan

Patricia Nakache, a director at ThredUp Inc., sold shares of the company's Class A Common Stock under a pre-arranged 10b5-1 trading plan.

Summary

• Patricia Nakache, a director of ThredUp Inc., executed multiple sales of Class A Common Stock on December 4th and 5th, 2024.
• These transactions were conducted under a pre-arranged Rule 10b5-1 trading plan adopted on March 15, 2024.
• The sales were executed at a weighted average price of $1.77 per share, with individual transactions ranging from $1.77 to $1.79.
• A total of 7,778 shares were sold directly by Ms. Nakache.
• Additionally, shares held indirectly through various Trinity Ventures funds were also sold, with Ms. Nakache disclaiming beneficial ownership except for her pecuniary interest.
• The total number of shares sold indirectly through Trinity Ventures X, L.P. was 7,686, through Trinity X Entrepreneurs' Fund, L.P. was 76, and through Trinity X Side-By-Side Fund, L.P. was 42.
• After these transactions, Ms. Nakache directly owns 250,956 shares and indirectly owns 19,347 shares through Trinity Ventures X, L.P., 197 shares through Trinity X Entrepreneurs' Fund, L.P., 107 shares through Trinity X Side-By-Side Fund, L.P., and 47 shares through TVL Management Corp.

Sentiment

Score: 5

Explanation: The document reports insider selling, which is generally neutral to slightly negative. However, the sales were under a pre-arranged plan, which mitigates some of the negative sentiment.

Negatives

• The sale of shares by a director could be perceived negatively by the market.

Risks

• Continued sales by insiders could put downward pressure on the stock price.
• The market may interpret these sales as a lack of confidence in the company's future prospects.

Industry Context

Insider trading activity is a common occurrence in publicly traded companies, and these transactions are closely monitored by investors and regulators. The use of a 10b5-1 plan is a legal way for insiders to sell shares without being accused of trading on non-public information.

Comparison to Industry Standards

• Sales by insiders are a common occurrence in publicly traded companies, and the use of a 10b5-1 plan is a standard practice to avoid accusations of insider trading.
• The volume of shares sold is relatively small compared to the total outstanding shares of ThredUp, but the market reaction will depend on overall sentiment and other news.

Stakeholder Impact

• Shareholders may react negatively to the news of insider selling, potentially leading to a decrease in the stock price.
• The impact on other stakeholders is likely to be minimal.

Key Dates

Keywords

ThredUp, insider trading, Form 4, share sale, Patricia Nakache, Rule 10b5-1, Trinity Ventures, director