Etsy (NASDAQ:ETSY) Shares Gap Up - Should You Buy?

Etsy, Inc. (NASDAQ:ETSY - Get Free Report)'s share price gapped up prior to trading on Monday . The stock had previously closed at $54.91, but opened at $57.00. Etsy shares last traded at $56.65, with a volume of 1,065,516 shares.

Analyst Ratings Changes

ETSY has been the subject of a number of recent analyst reports. Wedbush decreased their target price on shares of Etsy from $65.00 to $58.00 and set a "neutral" rating for the company in a research report on Tuesday, October 22nd. JMP Securities reiterated a "market perform" rating on shares of Etsy in a research report on Monday, December 16th. Jefferies Financial Group upgraded shares of Etsy from an "underperform" rating to a "hold" rating and boosted their target price for the company from $45.00 to $55.00 in a report on Monday, January 13th. Stifel Nicolaus cut their target price on Etsy from $64.00 to $56.00 and set a "hold" rating on the stock in a research report on Monday, October 28th. Finally, Citigroup lowered their price objective on shares of Etsy from $65.00 to $54.00 and set a "neutral" rating for the company in a research note on Thursday, October 31st. Four investment analysts have rated the stock with a sell rating, fourteen have assigned a hold rating, seven have assigned a buy rating and one has given a strong buy rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of "Hold" and a consensus target price of $62.42.

Etsy Stock Up 0.4 %

The firm's 50-day moving average price is $55.21 and its 200-day moving average price is $54.33. The company has a market cap of $6.24 billion, a P/E ratio of 28.30, a price-to-earnings-growth ratio of 2.69 and a beta of 2.00.

Etsy announced that its board has initiated a stock buyback program on Wednesday, October 30th that permits the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization permits the specialty retailer to repurchase up to 17.8% of its stock through open market purchases. Stock repurchase programs are generally a sign that the company's board of directors believes its stock is undervalued.

Insider Buying and Selling

In related news, insider Nicholas Daniel sold 1,500 shares of the company's stock in a transaction on Monday, February 3rd. The shares were sold at an average price of $55.34, for a total value of $83,010.00. Following the completion of the transaction, the insider now directly owns 22,198 shares in the company, valued at approximately $1,228,437.32. The trade was a 6.33 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. 2.60% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in ETSY. Sanctuary Advisors LLC bought a new position in shares of Etsy during the 2nd quarter valued at $967,000. Diversified Trust Co grew its stake in shares of Etsy by 58.8% during the third quarter. Diversified Trust Co now owns 10,257 shares of the specialty retailer's stock valued at $570,000 after buying an additional 3,798 shares during the last quarter. Miracle Mile Advisors LLC purchased a new position in shares of Etsy in the third quarter worth about $279,000. UMB Bank n.a. lifted its stake in shares of Etsy by 112.3% in the 3rd quarter. UMB Bank n.a. now owns 552 shares of the specialty retailer's stock valued at $31,000 after acquiring an additional 292 shares during the last quarter. Finally, Wynn Capital LLC purchased a new stake in Etsy during the 3rd quarter valued at about $205,000. 99.53% of the stock is owned by hedge funds and other institutional investors.

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.