Etsy Inc (NYSE:ETSY) Stock Now Rated "Hold" by Sell-Side Brokerages

Key Points

• Etsy has a consensus “Hold” rating from 33 analysts, with 17 holds, 14 buys, one strong buy and one sell. The average 12-month price target is $94.07, though recent targets range from $79 to $110.
• The company’s latest quarter exceeded expectations, with revenue rising 10.9% year over year to $692.5 million and adjusted EBITDA reaching approximately $210 million. Active buyers and gross merchandise sales also improved, supporting a more positive investment outlook.
• Insiders sold 133,251 shares worth about $11.0 million during the past quarter, while institutional investors own 99.53% of Etsy’s stock. The shares recently traded near $88.95, close to the 52-week high of $94.49.

Etsy Inc (NYSE:ETSY - Get Free Report) has earned a consensus rating of "Hold" from the thirty-three ratings firms that are covering the firm, MarketBeat Ratings reports. One equities research analyst has rated the stock with a sell recommendation, seventeen have assigned a hold recommendation, fourteen have given a buy recommendation and one has assigned a strong buy recommendation to the company. The average 1 year price objective among brokers that have issued a report on the stock in the last year is $94.07.

ETSY has been the topic of several research analyst reports. Wells Fargo & Company raised their price objective on Etsy from $59.00 to $80.00 and gave the company an "underweight" rating in a report on Thursday. Sanford C. Bernstein raised Etsy from a "hold" rating to a "strong-buy" rating in a research note on Friday, September 11th. Canaccord Genuity Group increased their target price on Etsy from $92.00 to $105.00 and gave the company a "buy" rating in a research report on Wednesday. JPMorgan Chase & Co. raised shares of Etsy from a "neutral" rating to an "overweight" rating and lifted their price target for the company from $85.00 to $100.00 in a research note on Friday, August 7th. Finally, Citigroup lifted their price target on shares of Etsy from $92.00 to $101.00 and gave the company a "neutral" rating in a research note on Thursday.

Insider Buying and Selling at Etsy

In other Etsy news, Director Frederick Wilson sold 20,000 shares of the stock in a transaction on Tuesday, September 1st. The shares were sold at an average price of $81.86, for a total transaction of $1,637,200.00. Following the transaction, the director directly owned 401,329 shares of the company's stock, valued at $32,852,791.94. This trade represents a 4.75% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Josh Silverman sold 41,108 shares of Etsy stock in a transaction dated Monday, August 3rd. The shares were sold at an average price of $83.11, for a total transaction of $3,416,485.88. Following the completion of the sale, the insider owned 171,932 shares in the company, valued at approximately $14,289,268.52. This trade represents a 19.30% 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 quarter, insiders sold 133,251 shares of company stock valued at $10,966,499. Insiders own 2.50% of the company's stock.

Institutional Investors Weigh In On Etsy

Several institutional investors have recently bought and sold shares of the company. Renaissance Technologies LLC boosted its stake in Etsy by 11.1% during the 1st quarter. Renaissance Technologies LLC now owns 5,962,210 shares of the company's stock worth $297,991,000 after purchasing an additional 594,768 shares during the last quarter. Arrowstreet Capital Limited Partnership lifted its stake in Etsy by 51.4% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 3,278,123 shares of the company's stock worth $163,841,000 after purchasing an additional 1,112,520 shares in the last quarter. Assenagon Asset Management S.A. boosted its holdings in shares of Etsy by 48.0% during the 2nd quarter. Assenagon Asset Management S.A. now owns 1,613,333 shares of the company's stock worth $121,532,000 after purchasing an additional 523,092 shares during the last quarter. William Blair Investment Management LLC acquired a new position in shares of Etsy during the 2nd quarter worth approximately $120,417,000. Finally, Dimensional Fund Advisors LP grew its position in shares of Etsy by 6.8% in the first quarter. Dimensional Fund Advisors LP now owns 1,573,696 shares of the company's stock valued at $78,642,000 after purchasing an additional 100,542 shares in the last quarter. 99.53% of the stock is currently owned by institutional investors and hedge funds.

Etsy News Summary

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 Stock Performance

ETSY opened at $88.95 on Friday. The company has a fifty day moving average of $78.74 and a two-hundred day moving average of $68.21. The stock has a market capitalization of $7.67 billion, a price-to-earnings ratio of 10.50, a PEG ratio of 2.13 and a beta of 1.86. Etsy has a fifty-two week low of $44.00 and a fifty-two week high of $94.49.

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

About Etsy

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.