Etsy (NYSE:ETSY) Cut to "Hold" at Wall Street Zen

Key Points

• Wall Street Zen downgraded Etsy from a "buy" to a "hold," and MarketBeat data shows an average analyst rating of Hold with a consensus price target of $70.09.
• Etsy beat Q1 estimates (EPS $0.92 vs. $0.88) and reported $881.6M in revenue with GMS up 5.5% and its first buyer growth in two years, signaling improving marketplace momentum.
• Despite operational improvements, significant insider selling (including former CEO Josh Silverman) and mixed analyst actions—some raising targets to as high as $85 while others downgrade or stay cautious—could cap near-term upside.

Etsy (NYSE:ETSY - Get Free Report) was downgraded by investment analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a report issued on Saturday.

Several other equities analysts have also weighed in on the stock. JPMorgan Chase & Co. increased their price objective on shares of Etsy from $58.00 to $75.00 and gave the company a "neutral" rating in a research report on Thursday. Jefferies Financial Group lowered their price target on shares of Etsy from $62.00 to $55.00 and set a "hold" rating on the stock in a research report on Thursday, February 12th. Zacks Research lowered shares of Etsy from a "strong-buy" rating to a "hold" rating in a research report on Monday, April 20th. BTIG Research raised their price target on shares of Etsy from $65.00 to $78.00 and gave the stock a "buy" rating in a research report on Wednesday. Finally, Wells Fargo & Company raised their price target on shares of Etsy from $47.00 to $61.00 and gave the stock an "underweight" rating in a research report on Thursday. One analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, nineteen have assigned a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, Etsy currently has an average rating of "Hold" and a consensus price target of $70.09.

Etsy Price Performance

Shares of ETSY opened at $63.16 on Friday. The company has a market capitalization of $5.99 billion, a price-to-earnings ratio of 26.32, a PEG ratio of 9.65 and a beta of 1.77. The company has a 50-day moving average of $55.48. Etsy has a fifty-two week low of $42.97 and a fifty-two week high of $76.51.

Etsy (NYSE:ETSY - Get Free Report) last issued its quarterly earnings data on Thursday, February 19th. The company reported $0.92 earnings per share for the quarter, beating the consensus estimate of $0.88 by $0.04. The company had revenue of $881.64 million for the quarter. Etsy had a net margin of 9.94% and a negative return on equity of 28.60%. As a group, sell-side analysts expect that Etsy will post 3.16 EPS for the current year.

Insider Buying and Selling

In other Etsy news, Director Charles Andrew Ballard sold 1,790 shares of the stock in a transaction dated Wednesday, March 4th. The shares were sold at an average price of $55.74, for a total transaction of $99,774.60. Following the sale, the director directly owned 4,006 shares in the company, valued at $223,294.44. This represents a 30.88% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, insider Josh Silverman sold 70,000 shares of the stock in a transaction dated Tuesday, April 21st. The stock was sold at an average price of $65.00, for a total transaction of $4,550,000.00. Following the sale, the insider owned 130,694 shares in the company, valued at $8,495,110. The trade was a 34.88% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 205,079 shares of company stock valued at $12,768,270. 2.80% of the stock is owned by company insiders.

Institutional Investors Weigh In On Etsy

A number of large investors have recently bought and sold shares of ETSY. Lone Pine Capital LLC acquired a new stake in Etsy during the third quarter worth about $257,614,000. SG Americas Securities LLC grew its stake in Etsy by 717.7% during the first quarter. SG Americas Securities LLC now owns 1,497,174 shares of the company's stock worth $74,829,000 after buying an additional 1,314,071 shares in the last quarter. AQR Capital Management LLC grew its stake in Etsy by 40.1% during the fourth quarter. AQR Capital Management LLC now owns 4,111,639 shares of the company's stock worth $227,785,000 after buying an additional 1,177,301 shares in the last quarter. Allianz Asset Management GmbH grew its stake in Etsy by 1,648.1% during the third quarter. Allianz Asset Management GmbH now owns 706,679 shares of the company's stock worth $46,916,000 after buying an additional 666,253 shares in the last quarter. Finally, Norges Bank acquired a new stake in shares of Etsy in the 4th quarter valued at approximately $33,903,000. 99.53% of the stock is currently owned by institutional investors and hedge funds.

More Etsy News

Here are the key news stories impacting Etsy this week:

• Positive Sentiment: Q1 results beat estimates: revenue and EPS topped forecasts; Etsy reported mid-single-digit GMS growth and its first buyer growth in two years, signaling improving marketplace momentum. ETSY Q1 Earnings & Revenues Surpass Estimates
• Positive Sentiment: Gross merchandise sales (GMS) +5.5% in Q1 and improving revenue mix as advertising/services drive growth and margins — key fundamentals investors reward. Etsy marketplace GMS rises 5.5% in first quarter
• Positive Sentiment: Several brokers raised price targets and issued buy/overweight calls (Needham to $85 buy; Canaccord to $80 buy; Barclays to $82 overweight; Truist to $85 buy), providing bullish analyst support. Broker Price Target Actions
• Neutral Sentiment: Management commentary and coverage note a “cautious recovery” from the earnings call — positive operational signs but management is measured on cadence of improvement. Earnings Call Highlights
• Neutral Sentiment: Product/marketplace stories emphasize a platform rebuild and trend-tailwinds (nostalgia/bold design) that may support long-term engagement but are execution-dependent. Marketplace Rebuild Paying Off
• Neutral Sentiment: Press pieces highlight AI/SEO algorithm changes that create urgency for sellers — mixed near-term impact (implementation frictions vs. longer-term search improvements). AI SEO Urgency for Sellers
• Negative Sentiment: Insider sale: former CEO Josh Silverman sold ~36,443 shares under a 10b5‑1 plan, reducing his stake by ~21.8% — often interpreted by markets as a near-term negative signal despite pre-arrangement. SEC Form 4
• Negative Sentiment: B. Riley downgraded ETSY from buy to neutral (PT $75) and Wells Fargo remains underweight despite a raised target — mixed-to-cautious analyst views could cap upside in the near term. B. Riley Downgrade
• Negative Sentiment: Morgan Stanley flagged sustainability questions even as growth returns — ESG scrutiny can pressure multiples and investor sentiment. Sustainability Questions

About Etsy

Etsy, Inc operates two-sided online marketplaces that connect buyers and sellers primarily in the United States, the United Kingdom, Germany, Canada, Australia, France, and India. 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. In addition, it offers various seller services, including Etsy Payments, a payment processing service; Etsy Ads, an advertising platform; and Shipping Labels, which allows sellers in the United States, Canada, the United Kingdom, Australia, and India to purchase discounted shipping labels.

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