Etsy (NASDAQ:ETSY) Stock Price Down 7.4% - Should You Sell?

Etsy, Inc. (NASDAQ:ETSY - Get Free Report) fell 7.4% during trading on Friday . The company traded as low as $54.86 and last traded at $54.88. 5,916,952 shares changed hands during trading, an increase of 43% from the average session volume of 4,151,948 shares. The stock had previously closed at $59.29.

Analyst Upgrades and Downgrades

A number of research firms recently commented on ETSY. The Goldman Sachs Group lowered their price objective on shares of Etsy from $35.00 to $31.00 and set a "sell" rating on the stock in a research note on Thursday, May 1st. Barclays decreased their price objective on shares of Etsy from $55.00 to $53.00 and set an "equal weight" rating for the company in a research note on Wednesday, April 30th. UBS Group decreased their price objective on shares of Etsy from $46.00 to $45.00 and set a "neutral" rating for the company in a research note on Thursday, May 1st. Cantor Fitzgerald increased their target price on shares of Etsy from $42.00 to $47.00 and gave the stock a "neutral" rating in a research report on Thursday, May 1st. Finally, Wells Fargo & Company cut their price target on shares of Etsy from $46.00 to $40.00 and set an "underweight" rating on the stock in a report on Thursday, May 1st. Six investment analysts have rated the stock with a sell rating, fifteen have assigned a hold rating and six have assigned a buy rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of "Hold" and an average target price of $50.17.

Etsy Stock Performance

The company has a market capitalization of $5.62 billion, a price-to-earnings ratio of 22.74, a price-to-earnings-growth ratio of 2.57 and a beta of 1.80. The firm's 50-day simple moving average is $49.30 and its 200-day simple moving average is $51.22.

Etsy (NASDAQ:ETSY - Get Free Report) last issued its earnings results on Wednesday, April 30th. The specialty retailer reported $0.46 earnings per share for the quarter, missing the consensus estimate of $0.50 by ($0.04). Etsy had a net margin of 10.80% and a negative return on equity of 46.62%. The business had revenue of $651.18 million for the quarter, compared to analyst estimates of $642.22 million. During the same quarter last year, the firm posted $0.48 earnings per share. Etsy's revenue was up .8% on a year-over-year basis. Equities research analysts forecast that Etsy, Inc. will post 2.57 earnings per share for the current year.

Insider Activity

In other Etsy news, insider Toni Thompson Nadal sold 1,444 shares of the business's stock in a transaction dated Thursday, April 3rd. The shares were sold at an average price of $48.30, for a total value of $69,745.20. Following the transaction, the insider now directly owns 592 shares in the company, valued at $28,593.60. The trade was a 70.92% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CAO Merilee Buckley sold 1,676 shares of the business's stock in a transaction dated Thursday, April 3rd. The shares were sold at an average price of $48.40, for a total transaction of $81,118.40. The disclosure for this sale can be found here. In the last three months, insiders have sold 205,418 shares of company stock worth $11,234,192. Corporate insiders own 2.80% of the company's stock.

Hedge Funds Weigh In On Etsy

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Lindbrook Capital LLC lifted its holdings in Etsy by 55.7% in the fourth quarter. Lindbrook Capital LLC now owns 506 shares of the specialty retailer's stock valued at $27,000 after buying an additional 181 shares during the period. True Wealth Design LLC lifted its position in Etsy by 112.7% in the 4th quarter. True Wealth Design LLC now owns 551 shares of the specialty retailer's stock valued at $29,000 after acquiring an additional 292 shares in the last quarter. Hurley Capital LLC bought a new stake in Etsy in the 4th quarter valued at $32,000. Strategic Investment Solutions Inc. IL acquired a new stake in Etsy in the 4th quarter valued at $34,000. Finally, Summit Securities Group LLC acquired a new stake in Etsy in the 4th quarter valued at $37,000. 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.