Etsy Inc (NYSE:ETSY) Receives Average Rating of "Hold" from Analysts

Key Points

• Analysts give Etsy a consensus “Hold” rating based on 30 firms (3 sell, 17 hold, 8 buy, 2 strong buy) with an average 1‑year target price of $61.67.
• Etsy beat quarterly EPS estimates ($0.92 vs. $0.88) on $881.64M revenue but showed a modest net margin (5.65%) and negative ROE (24.94%), and its board has approved a $750 million share buyback program covering up to 14.2% of shares.
• Insiders have been net sellers (43,971 shares sold, about $2.33M last quarter), while institutional investors hold the vast majority of the stock (~99.53%) and several funds recently adjusted or initiated positions.

Etsy Inc (NYSE:ETSY - Get Free Report) has been given a consensus recommendation of "Hold" by the thirty research firms that are presently covering the firm, MarketBeat.com reports. Three analysts have rated the stock with a sell recommendation, seventeen have issued a hold recommendation, eight have issued a buy recommendation and two have issued a strong buy recommendation on the company. The average 1 year target price among analysts that have updated their coverage on the stock in the last year is $61.6667.

ETSY has been the subject of a number of analyst reports. Canaccord Genuity Group cut their price objective on shares of Etsy from $80.00 to $72.00 and set a "buy" rating for the company in a research report on Friday, February 20th. UBS Group cut their price objective on shares of Etsy from $74.00 to $53.00 and set a "neutral" rating for the company in a research report on Friday, February 20th. Needham & Company LLC cut their price objective on shares of Etsy from $76.00 to $65.00 and set a "buy" rating for the company in a research report on Friday, February 20th. Barclays upgraded shares of Etsy from an "equal weight" rating to an "overweight" rating and set a $72.00 price objective for the company in a research report on Thursday, February 19th. Finally, Truist Financial upped their price objective on shares of Etsy from $80.00 to $83.00 and gave the stock a "buy" rating in a research report on Friday, February 20th.

Etsy Stock Performance

ETSY stock opened at $55.25 on Tuesday. The firm has a fifty day simple moving average of $52.09. Etsy has a 12 month low of $41.51 and a 12 month high of $76.51. The stock has a market cap of $5.32 billion, a P/E ratio of 42.18, a price-to-earnings-growth ratio of 3.36 and a beta of 1.77.

Etsy (NYSE:ETSY - Get Free Report) last released its quarterly earnings results on Thursday, February 19th. The company reported $0.92 EPS for the quarter, beating the consensus estimate of $0.88 by $0.04. Etsy had a net margin of 5.65% and a negative return on equity of 24.94%. The firm had revenue of $881.64 million during the quarter.

Etsy declared that its Board of Directors has approved a share buyback program on Thursday, December 18th that permits the company to buyback $750.00 million in shares. This buyback authorization permits the company to buy up to 14.2% of its stock through open market purchases. Stock buyback programs are generally an indication that the company's board believes its shares are undervalued.

Insiders Place Their Bets

In other Etsy news, CAO Merilee Buckley sold 1,993 shares of the company's stock in a transaction on Monday, April 6th. The shares were sold at an average price of $52.92, for a total transaction of $105,469.56. Following the completion of the transaction, the chief accounting officer owned 809 shares in the company, valued at approximately $42,812.28. This represents a 71.13% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Josh Silverman sold 21,666 shares of the company's stock in a transaction on Monday, February 2nd. The stock was sold at an average price of $53.26, for a total transaction of $1,153,931.16. Following the transaction, the insider owned 90,661 shares of the company's stock, valued at approximately $4,828,604.86. The trade was a 19.29% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 43,971 shares of company stock worth $2,326,623. 2.80% of the stock is owned by insiders.

Hedge Funds Weigh In On Etsy

A number of large investors have recently made changes to their positions in ETSY. Integrated Wealth Concepts LLC increased its holdings in shares of Etsy by 19.1% in the 1st quarter. Integrated Wealth Concepts LLC now owns 5,986 shares of the company's stock valued at $282,000 after purchasing an additional 961 shares in the last quarter. Empowered Funds LLC increased its holdings in shares of Etsy by 55.5% in the 1st quarter. Empowered Funds LLC now owns 9,673 shares of the company's stock valued at $456,000 after purchasing an additional 3,451 shares in the last quarter. Woodline Partners LP purchased a new position in shares of Etsy in the 1st quarter valued at about $2,181,000. Northwestern Mutual Wealth Management Co. increased its holdings in shares of Etsy by 33.7% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 3,594 shares of the company's stock valued at $180,000 after purchasing an additional 906 shares in the last quarter. Finally, M&T Bank Corp purchased a new position in shares of Etsy in the 2nd quarter valued at about $232,000. Hedge funds and other institutional investors own 99.53% of the company's stock.

About Etsy

Etsy, Inc operates two-sided online marketplaces that connect buyers and sellers primarily in the United States, the United Kingdom, Germany, Canada, Australia, France, and India. Its primary marketplace is Etsy.com that connects artisans and entrepreneurs with various consumers. The company also offers Reverb, a musical instrument marketplace; Depop, a fashion resale marketplace; and Elo7, a Brazil-based marketplace for handmade and unique items. In addition, it offers various seller services, including Etsy Payments, a payment processing service; Etsy Ads, an advertising platform; and Shipping Labels, which allows sellers in the United States, Canada, the United Kingdom, Australia, and India to purchase discounted shipping labels.

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