Etsy (NASDAQ:ETSY) Trading Down 7.8% on Disappointing Earnings

Key Points

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Etsy, Inc. (NASDAQ:ETSY - Get Free Report) traded down 7.8% on Thursday after the company announced weaker than expected quarterly earnings. The company traded as low as $57.70 and last traded at $57.15. 1,893,980 shares changed hands during mid-day trading, a decline of 60% from the average session volume of 4,774,999 shares. The stock had previously closed at $61.98.

The specialty retailer reported $0.25 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 for the quarter, compared to analysts' expectations of $645.16 million. During the same quarter in the prior year, the business earned $0.41 earnings per share. The company's quarterly revenue was up 3.8% on a year-over-year basis.

Analyst Upgrades and Downgrades

Several research analysts have recently commented on the company. Stifel Nicolaus raised their price target on Etsy from $45.00 to $66.00 and gave the stock a "hold" rating in a research report on Tuesday. JPMorgan Chase & Co. raised their price target on Etsy from $50.00 to $53.00 and gave the stock a "neutral" rating in a research report on Tuesday, July 22nd. Citigroup lowered their price target on Etsy from $53.00 to $48.00 and set a "neutral" rating for the company in a research report on Friday, April 25th. Arete lowered Etsy from a "neutral" rating to a "sell" rating and set a $43.00 target price for the company. in a report on Wednesday, June 11th. Finally, Deutsche Bank Aktiengesellschaft lifted their target price on Etsy from $40.00 to $47.00 and gave the company a "hold" rating in a report on Tuesday, July 22nd. Five research analysts have rated the stock with a sell rating, fifteen have assigned a hold rating and eight have assigned a buy rating to the company's stock. According to data from MarketBeat, the company has an average rating of "Hold" and an average target price of $56.76.

Insider Transactions at Etsy

In other news, CTO Richard Edward Colburn III sold 2,350 shares of Etsy stock in a transaction dated Friday, May 16th. The stock was sold at an average price of $47.01, for a total transaction of $110,473.50. Following the sale, the chief technology officer owned 2,896 shares in the company, valued at approximately $136,140.96. The trade was a 44.80% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, insider Nicholas Daniel sold 1,500 shares of Etsy stock in a transaction dated Tuesday, July 1st. The stock was sold at an average price of $51.36, for a total value of $77,040.00. Following the sale, the insider owned 34,683 shares in the company, valued at $1,781,318.88. This trade represents a 4.15% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 326,041 shares of company stock worth $19,664,717 over the last three months. 2.80% of the stock is currently owned by company insiders.

Institutional Trading of Etsy

Hedge funds and other institutional investors have recently made changes to their positions in the company. AQR Capital Management LLC increased its position in Etsy by 423.7% in 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 acquiring an additional 3,768,787 shares during the period. Acadian Asset Management LLC increased its position in Etsy by 112.8% in 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 acquiring an additional 1,486,142 shares during the period. Assenagon Asset Management S.A. increased its position in Etsy by 36.0% in the 1st quarter. Assenagon Asset Management S.A. now owns 2,026,263 shares of the specialty retailer's stock valued at $95,599,000 after acquiring an additional 535,864 shares during the period. Victory Capital Management Inc. increased its position in Etsy by 53.7% in the 1st quarter. Victory Capital Management Inc. now owns 1,248,902 shares of the specialty retailer's stock valued at $58,923,000 after acquiring an additional 436,231 shares during the period. Finally, Connor Clark & Lunn Investment Management Ltd. increased its position in Etsy by 140.8% in the 1st quarter. Connor Clark & Lunn Investment Management Ltd. now owns 711,454 shares of the specialty retailer's stock valued at $33,566,000 after acquiring an additional 415,942 shares during the period. Institutional investors and hedge funds own 99.53% of the company's stock.

Etsy Stock Performance

The stock has a market cap of $5.82 billion, a price-to-earnings ratio of 47.40, a PEG ratio of 3.16 and a beta of 1.73. The company has a 50-day moving average of $56.91 and a 200-day moving average of $51.45.

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.