Etsy (NASDAQ:ETSY) Shares Down 5.2% on Insider Selling

Key Points

• Etsy's shares fell 5.2% following a significant insider sale, with CEO Josh Silverman selling 70,000 shares at an average price of $65.00, decreasing his ownership by 52.76%.
• Multiple brokerages recently adjusted their price targets for Etsy, with recommendations ranging from a "buy" at $75.00 to a "hold" at $66.00, reflecting a consensus rating of "hold" with an average target price of $57.80.
• Etsy's latest quarterly earnings fell short of expectations, reporting $0.25 earnings per share against a forecast of $0.54, while revenue did increase 3.8% year-over-year to $672.66 million.

Shares of Etsy, Inc. (NASDAQ:ETSY - Get Free Report) were down 5.2% during trading on Monday after an insider sold shares in the company. The company traded as low as $62.26 and last traded at $61.59. Approximately 1,389,915 shares changed hands during mid-day trading, a decline of 72% from the average daily volume of 4,965,706 shares. The stock had previously closed at $64.99.

Specifically, CEO Josh Silverman sold 70,000 shares of the business's stock in a transaction that occurred on Thursday, September 18th. The shares were sold at an average price of $65.00, for a total value of $4,550,000.00. Following the completion of the sale, the chief executive officer directly owned 62,674 shares in the company, valued at approximately $4,073,810. The trade was a 52.76% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink.

Wall Street Analysts Forecast Growth

A number of research firms recently commented on ETSY. Barclays reiterated a "positive" rating and set a $60.00 price target (up from $52.00) on shares of Etsy in a report on Thursday, July 31st. Raymond James Financial upped their target price on shares of Etsy from $50.00 to $70.00 and gave the stock an "outperform" rating in a research report on Tuesday, July 22nd. Truist Financial upped their target price 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. Arete raised shares of Etsy from a "sell" rating to a "neutral" rating and set a $54.00 price objective on the stock in a research report on Thursday, August 7th. Finally, JPMorgan Chase & Co. increased their price objective on shares of Etsy from $50.00 to $53.00 and gave the company a "neutral" rating in a research report on Tuesday, July 22nd. Eight research analysts have rated the stock with a Buy rating, seventeen have issued a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of "Hold" and an average target price of $57.80.

Etsy Stock Performance

The company's fifty day moving average is $59.71 and its 200-day moving average is $53.05. The company has a market capitalization of $6.11 billion, a PE ratio of 49.73, 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 (EPS) for the quarter, missing the consensus estimate of $0.54 by ($0.29). Etsy had a negative return on equity of 31.10% and a net margin of 5.78%.The firm had revenue of $672.66 million during the quarter, compared to analysts' expectations of $645.16 million. During the same period in the prior year, the company posted $0.41 earnings per share. The company's revenue was up 3.8% compared to the same quarter last year. On average, sell-side analysts expect that Etsy, Inc. will post 2.57 EPS for the current fiscal year.

Institutional Investors Weigh In On Etsy

A number of institutional investors have recently added to or reduced their stakes in ETSY. Holocene Advisors LP grew its holdings in Etsy by 697.4% during the 2nd quarter. Holocene Advisors LP now owns 5,343,797 shares of the specialty retailer's stock valued at $268,045,000 after buying an additional 4,673,615 shares in the last quarter. AQR Capital Management LLC grew its holdings in Etsy by 423.7% during the 1st quarter. AQR Capital Management LLC now owns 4,658,225 shares of the specialty retailer's stock valued at $218,890,000 after buying an additional 3,768,787 shares in the last quarter. Acadian Asset Management LLC grew its holdings in Etsy by 112.8% during the 1st quarter. Acadian Asset Management LLC now owns 2,803,956 shares of the specialty retailer's stock valued at $132,273,000 after buying an additional 1,486,142 shares in the last quarter. Arrowstreet Capital Limited Partnership grew its holdings in Etsy by 62.3% during the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 3,692,134 shares of the specialty retailer's stock valued at $185,197,000 after buying an additional 1,416,772 shares in the last quarter. Finally, Norges Bank purchased a new stake in Etsy during the 2nd quarter valued at approximately $65,207,000. 99.53% of the stock is 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.