Wall Street Zen Upgrades Etsy (NYSE:ETSY) to "Buy"

Key Points

• Wall Street Zen upgraded Etsy from “Hold” to “Buy,” joining several other analysts who recently raised their ratings or price targets. However, the broader analyst consensus remains “Hold,” with a consensus target price of $94.07.
• Etsy reported a strong quarter, with revenue rising 10.9% year over year to approximately $692.5 million and EPS of $7.31, well above expectations. Profitability also improved, with adjusted EBITDA reaching about $210 million and a 30.4% margin.
• Shares opened at $88.95 after a 2.9% decline, while insiders sold roughly $11.0 million of stock over the past 90 days. Institutional investors own 99.53% of Etsy’s shares, and valuation concerns remain among some analysts.

Etsy (NYSE:ETSY - Get Free Report) was upgraded by research analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a report released on Saturday, Wall Street Zen reports.

Several other analysts also recently issued reports on the company. Deutsche Bank Aktiengesellschaft restated a "hold" rating and issued a $100.00 price target on shares of Etsy in a research note on Wednesday. Piper Sandler increased their price objective on Etsy from $70.00 to $80.00 and gave the stock a "neutral" rating in a research report on Friday, August 7th. Seaport Research Partners upgraded Etsy to a "buy" rating in a research report on Thursday, August 20th. Sanford C. Bernstein raised Etsy from a "hold" rating to a "strong-buy" rating in a report on Friday, September 11th. Finally, Weiss Ratings raised shares of Etsy from a "hold (c-)" rating to a "hold (c)" rating in a research report on Friday, October 16th. One analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating, seventeen have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, the company presently has a consensus rating of "Hold" and a consensus target price of $94.07.

Etsy Stock Down 2.9%

Shares of ETSY stock opened at $88.95 on Friday. Etsy has a 12-month low of $44.00 and a 12-month high of $94.49. The company has a market capitalization of $7.67 billion, a PE ratio of 22.78, a price-to-earnings-growth ratio of 2.13 and a beta of 1.86. The firm has a 50 day moving average price of $78.74 and a two-hundred day moving average price of $68.21.

Etsy (NYSE:ETSY - Get Free Report) last posted its earnings results on Wednesday, October 28th. The company reported $7.31 EPS for the quarter, beating the consensus estimate of $0.76 by $6.55. The company had revenue of $692.47 million for the quarter, compared to the consensus estimate of $669.04 million. Etsy had a negative return on equity of 43.65% and a net margin of 34.36%. The firm's revenue for the quarter was up 10.9% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.63 earnings per share. As a group, research analysts expect that Etsy will post 3.94 EPS for the current year.

Insider Activity

In related news, insider Josh Silverman sold 417 shares of the stock in a transaction that occurred on Thursday, October 15th. The stock was sold at an average price of $84.47, for a total transaction of $35,223.99. Following the sale, the insider owned 262,617 shares of the company's stock, valued at $22,183,257.99. This represents a 0.16% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Merilee Buckley sold 5,076 shares of the firm's stock in a transaction on Thursday, October 15th. The stock was sold at an average price of $90.00, for a total value of $456,840.00. Following the transaction, the chief accounting officer owned 5,076 shares in the company, valued at approximately $456,840. This trade represents a 50.00% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 133,251 shares of company stock worth $10,966,499. Corporate insiders own 2.50% of the company's stock.

Institutional Trading of Etsy

A number of institutional investors have recently modified their holdings of the stock. Sumitomo Mitsui Trust Group Inc. acquired a new position in shares of Etsy during the 3rd quarter worth $528,000. Mirae Asset Global Investments Co. Ltd. bought a new stake in shares of Etsy during the 3rd quarter worth $1,270,000. Vise Technologies Inc. lifted its position in shares of Etsy by 38.5% during the 3rd quarter. Vise Technologies Inc. now owns 6,886 shares of the company's stock worth $492,000 after buying an additional 1,914 shares during the last quarter. Choreo LLC lifted its position in shares of Etsy by 6.1% during the 3rd quarter. Choreo LLC now owns 12,785 shares of the company's stock worth $916,000 after buying an additional 731 shares during the last quarter. Finally, Signaturefd LLC lifted its position in shares of Etsy by 61.8% during the 3rd quarter. Signaturefd LLC now owns 762 shares of the company's stock worth $54,000 after buying an additional 291 shares during the last quarter. 99.53% of the stock is currently owned by institutional investors.

Etsy News Roundup

Here are the key news stories impacting Etsy this week:

• Positive Sentiment: Strong third-quarter results support the investment case. Etsy reported revenue of approximately $692.5 million, up 10.9% year over year and above expectations. Gross merchandise sales and advertising revenue strengthened, active buyers returned to growth, and management forecast fourth-quarter GMS growth of 5% to 7%. ETSY Q3 Earnings Beat Estimates on GMS & Ads Growth, Revenues Rise Y/Y
• Positive Sentiment: Profitability was a major catalyst for the recent rally. Adjusted EBITDA reached about $210 million, representing a 30.4% margin. Analysts at Wedbush said Etsy’s internal initiatives, particularly personalization, are contributing to GMS growth. Etsy's Internal Initiatives Drive GMS Growth, Wedbush Says
• Positive Sentiment: Several analysts raised their price targets. Needham increased its target to $110 and Rosenblatt raised its target to $105, with both firms maintaining buy ratings. BTIG Research also forecast significant potential appreciation for Etsy shares. BTIG Research Forecasts Strong Price Appreciation for Etsy Stock
• Neutral Sentiment: Etsy is tightening its rules on AI-generated listings. The new CEO is attempting to protect Etsy’s handmade-focused identity by restricting AI-related seller content. The move could improve buyer trust and help shoppers return, but users are calling for an even broader ban, creating execution and seller-retention risks. Etsy’s new CEO cracks down on AI listings—and buyers start to return
• Negative Sentiment: Valuation concerns and cautious ratings are limiting upside. Morgan Stanley raised its target to $79 while retaining an equal-weight rating, and Wells Fargo raised its target to $80 but kept an underweight rating. Both targets remain below the stock’s recent trading level, suggesting some investors view the rally as ahead of near-term fundamentals.

Etsy Company Profile

Etsy, Inc operates an online marketplace that connects independent sellers with consumers seeking unique and creative goods. Its marketplace features products such as handmade items, personalized gifts, vintage merchandise, home décor, jewelry, clothing, craft supplies and other goods made, designed, selected or sourced by individual sellers and small businesses.

The company provides tools and services that support marketplace activity, including seller storefronts, search and discovery features, payment processing, advertising, shipping assistance and customer support.

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