Etsy (NYSE:ETSY) Stock Rating Lowered by Zacks Research

Key Points

• Zacks Research downgraded Etsy from “strong buy” to “hold,” while the broader analyst consensus remains “hold” with a $86.21 average price target.
• Etsy’s shares opened at $71.56, below the 50-day moving average of $77.74 but above the 200-day average of $70.46; the stock has traded between $44.00 and $87.97 over the past year.
• The company’s latest quarter showed mixed results: revenue of $668.31 million exceeded estimates, but EPS of negative $0.49 missed expectations by $1.24, while revenue declined 0.7% year over year.

Etsy (NYSE:ETSY - Get Free Report) was downgraded by investment analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a report released on Monday, Zacks reports.

Other equities research analysts also recently issued research reports about the stock. Evercore set a $83.00 price objective on shares of Etsy in a report on Thursday, August 6th. Morgan Stanley raised shares of Etsy from an "underweight" rating to an "outperform" rating in a research note on Thursday, August 20th. UBS Group boosted their price target on shares of Etsy from $74.00 to $86.00 and gave the stock a "neutral" rating in a research report on Friday, August 7th. Wedbush assumed coverage on shares of Etsy in a research note on Thursday, July 16th. They issued a "neutral" rating and a $80.00 price target for the company. Finally, Bank of America upgraded shares of Etsy from a "neutral" rating to a "buy" rating and increased their price objective for the company from $88.00 to $95.00 in a report on Thursday, August 20th. Two research analysts have rated the stock with a Strong Buy rating, fourteen have given a Buy rating, eighteen have issued a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, Etsy currently has a consensus rating of "Hold" and a consensus target price of $86.21.

Etsy Price Performance

ETSY opened at $71.56 on Monday. The stock's 50 day moving average price is $77.74 and its 200 day moving average price is $70.46. The stock has a market cap of $6.79 billion, a P/E ratio of 39.98, a P/E/G ratio of 1.77 and a beta of 1.86. Etsy has a 12 month low of $44.00 and a 12 month high of $87.97.

Etsy (NYSE:ETSY - Get Free Report) last announced its quarterly earnings results on Wednesday, August 5th. The company reported ($0.49) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.75 by ($1.24). The business had revenue of $668.31 million for the quarter, compared to analyst estimates of $646.10 million. Etsy had a negative return on equity of 34.18% and a net margin of 7.32%.The company's revenue was down .7% compared to the same quarter last year. During the same quarter last year, the firm posted $0.25 EPS. Equities analysts anticipate that Etsy will post 3.94 EPS for the current year.

Insider Transactions at Etsy

In other news, insider Richard Edward Colburn III sold 2,913 shares of Etsy stock in a transaction that occurred on Thursday, September 3rd. The shares were sold at an average price of $82.11, for a total value of $239,186.43. Following the transaction, the insider owned 6,503 shares of the company's stock, valued at $533,961.33. The trade was a 30.94% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Charles Ballard sold 4,500 shares of the business's stock in a transaction that occurred on Wednesday, August 26th. The stock was sold at an average price of $81.85, for a total transaction of $368,325.00. Following the completion of the sale, the director owned 4,239 shares in the company, valued at $346,962.15. The trade was a 51.49% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 159,954 shares of company stock valued at $13,064,903 in the last quarter. 2.50% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the business. Blue Trust Inc. increased its holdings in Etsy by 19.3% in the first quarter. Blue Trust Inc. now owns 1,238 shares of the company's stock worth $62,000 after buying an additional 200 shares during the last quarter. Lmcg Investments LLC grew its position in Etsy by 0.3% in the first quarter. Lmcg Investments LLC now owns 71,569 shares of the company's stock worth $3,577,000 after acquiring an additional 249 shares in the last quarter. Modera Wealth Management LLC grew its position in Etsy by 1.3% in the first quarter. Modera Wealth Management LLC now owns 23,889 shares of the company's stock worth $1,194,000 after acquiring an additional 302 shares in the last quarter. Compound Planning Inc. increased its stake in shares of Etsy by 8.6% during the 1st quarter. Compound Planning Inc. now owns 4,346 shares of the company's stock worth $217,000 after purchasing an additional 346 shares during the last quarter. Finally, Waddell & Associates LLC increased its stake in shares of Etsy by 12.6% during the 4th quarter. Waddell & Associates LLC now owns 3,643 shares of the company's stock worth $202,000 after purchasing an additional 408 shares during the last quarter. Institutional investors and hedge funds own 99.53% of the company's stock.

Key Headlines Impacting Etsy

Here are the key news stories impacting Etsy this week:

• Positive Sentiment: Etsy is working to reduce emissions associated with freight and shipping, potentially strengthening its environmental credentials and relationships with sellers, customers, and logistics partners. The initiative could support the brand over time, although it is not an immediate revenue or earnings catalyst. How Etsy is pushing freight decarbonization
• Neutral Sentiment: Recent coverage compares Etsy’s year-to-date performance with retail and wholesale peers. The reports provide context on relative stock performance but do not identify a new company-specific catalyst, earnings revision, or change in analyst sentiment. Are Retail-Wholesale Stocks Lagging Etsy This Year?
• Neutral Sentiment: An Etsy veteran has been named chief executive of a construction-technology company. The executive’s departure may represent a minor talent or leadership-related headline, but there is no indication of an effect on Etsy’s strategy or operations. Etsy veteran named CEO of local construction tech company
• Negative Sentiment: CEO Josh Silverman sold 2,090 Etsy shares for approximately $151,421, reducing his direct stake by 0.79%. The sale was made under a pre-arranged Rule 10b5-1 plan, which reduces its signaling value, but it follows several earlier sales and could weigh modestly on sentiment. Silverman still owns 262,617 shares. Etsy insider Josh Silverman sells 2,090 shares
• Negative Sentiment: First-person reports about unsuccessful AI-generated product listings on Etsy highlight the difficulty of monetizing digital content and the potential for increased competition and marketplace clutter. However, these are anecdotal accounts rather than company-specific financial evidence. AI images and Etsy sales

Etsy Company Profile

Etsy, Inc operates a global online marketplace focused on unique and creative goods. Its platform connects buyers with independent sellers offering handmade products, vintage items, craft supplies, personalized merchandise, home décor, jewelry, clothing, and other specialty goods.

The company generates revenue primarily through marketplace services, including seller listing and transaction fees, payment processing, advertising, and other seller-focused services. Etsy also provides tools intended to help independent merchants manage their shops, market products, process orders, and reach customers.

Founded in 2005 and headquartered in Brooklyn, New York, Etsy serves buyers and sellers in numerous countries.

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