Etsy (NASDAQ:ETSY) Trading Up 6.6% - Time to Buy?

Key Points

• Etsy's stock price increased by 6.6% to $57.63 after previously closing at $54.06, despite trading volume being down 45% from its average.
• The company reported earnings that missed analysts' estimates with an EPS of $0.25, while revenue rose 3.8% year-over-year to $672.66 million.
• Eight analysts rated Etsy as a Buy, while the stock has a consensus rating of "Hold" and an average price target of $57.80.

Etsy, Inc. (NASDAQ:ETSY - Get Free Report) rose 6.6% during trading on Monday . The company traded as high as $57.51 and last traded at $57.63. Approximately 2,697,715 shares traded hands during mid-day trading, a decline of 45% from the average daily volume of 4,875,864 shares. The stock had previously closed at $54.06.

Analyst Ratings Changes

A number of equities analysts have recently commented on the company. Citizens Jmp upgraded Etsy to a "hold" rating in a report on Thursday, July 10th. UBS Group reissued a "neutral" rating and issued a $67.00 target price on shares of Etsy in a report on Thursday, July 31st. Deutsche Bank Aktiengesellschaft upped their price objective on Etsy from $40.00 to $47.00 and gave the stock a "hold" rating in a report on Tuesday, July 22nd. Barclays restated a "positive" rating and issued a $60.00 price target (up previously from $52.00) on shares of Etsy in a research note on Thursday, July 31st. Finally, Canaccord Genuity Group set a $76.00 target price on shares of Etsy in a research report on Wednesday, July 30th. Eight equities research analysts have rated the stock with a Buy rating, seventeen have assigned a Hold rating and three have assigned a Sell rating to the company's stock. According to MarketBeat.com, the stock has a consensus rating of "Hold" and an average price target of $57.80.

Etsy Stock Up 7.2%

The firm has a market cap of $5.75 billion, a PE ratio of 46.81, a PEG ratio of 3.44 and a beta of 1.77. The stock's fifty day simple moving average is $58.48 and its two-hundred day simple moving average is $52.31.

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

Insider Activity

In other news, Director Marla J. Blow sold 450 shares of the stock in a transaction on Friday, August 15th. The stock was sold at an average price of $67.46, for a total transaction of $30,357.00. Following the sale, the director directly owned 9,491 shares of the company's stock, valued at approximately $640,262.86. This represents a 4.53% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director M Michele Burns sold 14,464 shares of Etsy stock in a transaction on Friday, August 22nd. The shares were sold at an average price of $62.82, for a total transaction of $908,628.48. Following the completion of the sale, the director owned 19,964 shares of the company's stock, valued at $1,254,138.48. This represents a 42.01% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders have sold 251,482 shares of company stock worth $15,393,191. 2.80% of the stock is owned by company insiders.

Institutional Trading of Etsy

A number of hedge funds have recently bought and sold shares of ETSY. Heritage Wealth Advisors raised its stake in Etsy by 476.5% during the second quarter. Heritage Wealth Advisors now owns 490 shares of the specialty retailer's stock worth $25,000 after purchasing an additional 405 shares during the period. True Wealth Design LLC lifted its holdings in shares of Etsy by 112.7% during the 4th quarter. True Wealth Design LLC now owns 551 shares of the specialty retailer's stock worth $29,000 after acquiring an additional 292 shares during the period. Signaturefd LLC raised its stake in shares of Etsy by 52.7% during the second quarter. Signaturefd LLC now owns 556 shares of the specialty retailer's stock worth $28,000 after buying an additional 192 shares during the last quarter. Elevation Point Wealth Partners LLC acquired a new stake in Etsy in the second quarter valued at $35,000. Finally, SVB Wealth LLC acquired a new stake in Etsy in the 1st quarter worth about $36,000. Hedge funds and other institutional investors own 99.53% of the company's stock.

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.

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