Etsy (NASDAQ:ETSY) Upgraded to "Neutral" at Arete

Key Points

• Etsy's stock was upgraded by Arete from a "sell" to a "neutral" rating, with a price target set at $54.00, indicating a potential downside of 3.91% from its previous close.
• The company recently reported earnings of $0.25 per share, falling short of the consensus estimate of $0.54, although it achieved revenues of $672.66 million, surpassing expectations.
• Institutional investors own approximately 99.53% of Etsy's stock, with notable increases in holdings from various hedge funds and investment firms over the past quarters.

Etsy (NASDAQ:ETSY - Get Free Report) was upgraded by stock analysts at Arete from a "sell" rating to a "neutral" rating in a research report issued on Thursday, MarketBeat.com reports. The firm presently has a $54.00 price target on the specialty retailer's stock. Arete's price objective would suggest a potential downside of 11.34% from the stock's current price.

A number of other analysts have also recently weighed in on ETSY. Bank of America boosted their target price on shares of Etsy from $67.00 to $71.00 and gave the stock a "neutral" rating in a research note on Thursday, July 31st. Evercore ISI cut their price target on shares of Etsy from $60.00 to $54.00 and set an "outperform" rating on the stock in a report on Thursday, May 1st. Arete Research upgraded shares of Etsy to a "strong sell" rating in a report on Wednesday, June 11th. UBS Group reiterated a "neutral" rating and set a $67.00 price target on shares of Etsy in a report on Thursday, July 31st. Finally, Deutsche Bank Aktiengesellschaft lifted their price target on shares of Etsy from $40.00 to $47.00 and gave the stock a "hold" rating in a report on Tuesday, July 22nd. Three equities research analysts have rated the stock with a sell rating, seventeen have assigned a hold rating and eight have given a buy rating to the company's stock. According to MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus price target of $57.20.

Etsy Stock Up 0.7%

Shares of NASDAQ ETSY traded up $0.42 during midday trading on Thursday, reaching $60.91. 4,443,095 shares of the company were exchanged, compared to its average volume of 5,451,724. The stock's 50-day moving average price is $57.58 and its 200-day moving average price is $51.64. The stock has a market cap of $6.04 billion, a P/E ratio of 49.12, a PEG ratio of 3.84 and a beta of 1.73. Etsy has a one year low of $40.05 and a one year high of $68.45.

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

Insider Activity

In other news, Director Melissa Reiff sold 6,909 shares of the stock in a transaction that occurred on Friday, August 1st. The shares were sold at an average price of $58.89, for a total transaction of $406,871.01. Following the completion of the transaction, the director directly owned 16,424 shares of the company's stock, valued at $967,209.36. This represents a 29.61% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Josh Silverman sold 151,666 shares of the company's stock in a transaction that occurred on Monday, June 2nd. The shares were sold at an average price of $57.68, for a total transaction of $8,748,094.88. Following the sale, the chief executive officer owned 107,809 shares in the company, valued at $6,218,423.12. The trade was a 58.45% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 366,968 shares of company stock worth $22,076,609. 2.80% of the stock is owned by insiders.

Institutional Trading of Etsy

A number of institutional investors have recently modified their holdings of ETSY. True Wealth Design LLC lifted its stake in Etsy by 112.7% in the 4th quarter. True Wealth Design LLC now owns 551 shares of the specialty retailer's stock worth $29,000 after purchasing an additional 292 shares in the last quarter. Signaturefd LLC lifted its stake in Etsy by 52.7% in the 2nd quarter. Signaturefd LLC now owns 556 shares of the specialty retailer's stock worth $28,000 after purchasing an additional 192 shares in the last quarter. Strategic Investment Solutions Inc. IL purchased a new stake in Etsy in the 4th quarter worth approximately $34,000. SVB Wealth LLC purchased a new stake in Etsy in the 1st quarter worth approximately $36,000. Finally, Allworth Financial LP increased its holdings in shares of Etsy by 47.6% in the 1st quarter. Allworth Financial LP now owns 769 shares of the specialty retailer's stock worth $35,000 after buying an additional 248 shares during the last quarter. 99.53% of the stock is currently owned by hedge funds and other institutional investors.

About Etsy

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.