Etsy (NASDAQ:ETSY) Earns "Buy" Rating from Guggenheim

Key Points

• Guggenheim has reissued a "Buy" rating for Etsy (NASDAQ:ETSY) with a target price of $70.00, indicating a potential upside of 11.09% from the stock's previous close.
• Despite a revenue increase of 3.8% year-over-year, Etsy reported disappointing earnings of $0.25 EPS, missing the consensus estimate, which significantly impacted investor sentiment.
• Insider trading highlighted that CEO Josh Silverman sold 140,000 shares for approximately $9.1 million, a notable decrease in his ownership stake.

Etsy (NASDAQ:ETSY - Get Free Report)'s stock had its "buy" rating reiterated by Guggenheim in a research note issued to investors on Thursday,Benzinga reports. They currently have a $70.00 price target on the specialty retailer's stock. Guggenheim's price target points to a potential upside of 14.04% from the stock's current price.

Other equities analysts have also recently issued reports about the stock. Sanford C. Bernstein lifted their price target on shares of Etsy from $45.00 to $50.00 and gave the stock a "market perform" rating in a research report on Thursday, July 17th. Truist Financial lifted their price target on shares of Etsy from $70.00 to $75.00 and gave the stock a "buy" rating in a research report on Wednesday, August 20th. Barclays reissued a "positive" rating and set a $60.00 price target (up from $52.00) on shares of Etsy in a research report on Thursday, July 31st. Needham & Company LLC lifted their price target on shares of Etsy from $55.00 to $72.00 and gave the stock a "buy" rating in a research report on Thursday, July 31st. Finally, Stifel Nicolaus lifted their price target on shares of Etsy from $45.00 to $66.00 and gave the stock a "hold" rating in a research report on Tuesday, July 29th. Eight investment analysts have rated the stock with a Buy rating, seventeen have given a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat, the stock currently has an average rating of "Hold" and a consensus price target of $57.80.

Etsy Price Performance

NASDAQ:ETSY traded down $3.61 during trading hours on Thursday, reaching $61.38. The company's stock had a trading volume of 2,481,680 shares, compared to its average volume of 4,971,728. Etsy has a one year low of $40.05 and a one year high of $70.57. The business's 50-day moving average is $59.63 and its 200-day moving average is $52.95. The company has a market cap of $6.08 billion, a price-to-earnings ratio of 49.54, a price-to-earnings-growth ratio of 4.14 and a beta of 1.77.

Etsy (NASDAQ:ETSY - Get Free Report) last released its earnings results on Wednesday, July 30th. The specialty retailer reported $0.25 earnings per share for the quarter, missing the consensus estimate of $0.54 by ($0.29). The company had revenue of $672.66 million during the quarter, compared to the consensus estimate of $645.16 million. Etsy had a net margin of 5.78% and a negative return on equity of 31.10%. The firm's quarterly revenue was up 3.8% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.41 EPS. On average, sell-side analysts predict that Etsy will post 2.57 EPS for the current fiscal year.

Insider Transactions at Etsy

In other Etsy news, Director M Michele Burns sold 14,464 shares of Etsy stock in a transaction on Friday, August 22nd. The shares were sold at an average price of $62.82, for a total value of $908,628.48. Following the completion of the transaction, the director directly owned 19,964 shares of the company's stock, valued at $1,254,138.48. This trade represents a 42.01% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. Also, Director Charles Andrew Ballard sold 2,400 shares of Etsy stock in a transaction dated Friday, August 22nd. The shares were sold at an average price of $62.42, for a total transaction of $149,808.00. Following the sale, the director owned 5,796 shares of the company's stock, valued at $361,786.32. The trade was a 29.28% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders sold 386,482 shares of company stock valued at $23,680,691. Company insiders own 2.80% of the company's stock.

Institutional Investors Weigh In On Etsy

A number of hedge funds have recently modified their holdings of the business. Nuveen Asset Management LLC boosted its stake in Etsy by 0.8% during the fourth quarter. Nuveen Asset Management LLC now owns 326,661 shares of the specialty retailer's stock worth $17,277,000 after buying an additional 2,742 shares during the period. Tidal Investments LLC raised its holdings in Etsy by 4.6% during the fourth quarter. Tidal Investments LLC now owns 29,428 shares of the specialty retailer's stock worth $1,556,000 after purchasing an additional 1,305 shares in the last quarter. Voloridge Investment Management LLC grew its position in shares of Etsy by 40.6% during the fourth quarter. Voloridge Investment Management LLC now owns 476,457 shares of the specialty retailer's stock worth $25,200,000 after acquiring an additional 137,602 shares during the last quarter. PharVision Advisers LLC purchased a new position in Etsy in the 4th quarter valued at $283,000. Finally, GTS Securities LLC boosted its position in shares of Etsy by 142.3% during the 4th quarter. GTS Securities LLC now owns 14,667 shares of the specialty retailer's stock worth $776,000 after purchasing an additional 49,333 shares in the last quarter. 99.53% of the stock is currently owned by institutional investors and hedge funds.

Etsy Company Profile

Etsy, Inc, together with its subsidiaries, operates two-sided online marketplaces that connect buyers and sellers in the United States, the United Kingdom, Germany, Canada, Australia, and France. 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.