Etsy (NYSE:ETSY) Cut to "Neutral" at B. Riley Financial

Key Points

• B. Riley Financial downgraded Etsy from "buy" to "neutral" while raising its price target to $75 (from $70), implying roughly a 15% upside from current levels.
• Q1 results showed revenue of $631.3M that beat estimates and the company's first buyer growth in two years, but EPS of $0.60 slightly missed consensus and profitability metrics (negative ROE, low net margin) remain weak.
• Insider selling has been notable — including CEO Josh Silverman's sale of 70,000 shares under a 10b5‑1 plan — and the stock traded down about 6.5% to roughly $65, signaling investor caution.

Etsy (NYSE:ETSY - Get Free Report) was downgraded by stock analysts at B. Riley Financial from a "buy" rating to a "neutral" rating in a research note issued on Thursday. They presently have a $75.00 price objective on the stock, up from their previous price objective of $70.00. B. Riley Financial's price objective points to a potential upside of 15.21% from the stock's current price.

Several other research firms also recently issued reports on ETSY. Barclays raised Etsy from an "equal weight" rating to an "overweight" rating and set a $72.00 price target for the company in a research note on Thursday, February 19th. Stifel Nicolaus dropped their target price on shares of Etsy from $62.00 to $55.00 and set a "hold" rating for the company in a report on Friday, February 20th. Truist Financial lifted their target price on shares of Etsy from $80.00 to $83.00 and gave the stock a "buy" rating in a research report on Friday, February 20th. Zacks Research downgraded shares of Etsy from a "strong-buy" rating to a "hold" rating in a report on Monday, April 20th. Finally, Sanford C. Bernstein reissued a "market perform" rating on shares of Etsy in a research note on Thursday. One investment analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, nineteen have assigned a Hold rating and three have assigned a Sell rating to the company's stock. According to data from MarketBeat.com, Etsy has an average rating of "Hold" and a consensus price target of $65.08.

Etsy Trading Down 6.5%

Etsy stock opened at $65.10 on Thursday. Etsy has a one year low of $42.10 and a one year high of $76.51. The firm has a fifty day simple moving average of $55.16. The firm has a market capitalization of $6.18 billion, a P/E ratio of 50.22, a P/E/G ratio of 9.90 and a beta of 1.77.

Etsy (NYSE:ETSY - Get Free Report) last issued its earnings results on Wednesday, April 29th. The company reported $0.60 EPS for the quarter, missing the consensus estimate of $0.62 by ($0.02). The company had revenue of $631.28 million for the quarter, compared to analysts' expectations of $622.39 million. Etsy had a negative return on equity of 24.94% and a net margin of 5.65%.Etsy's revenue for the quarter was up 3.1% on a year-over-year basis. During the same quarter in the previous year, the firm posted ($0.49) earnings per share. On average, equities analysts anticipate that Etsy will post 3.12 EPS for the current fiscal year.

Insider Buying and Selling

In other Etsy news, Director Charles Andrew Ballard sold 1,790 shares of the stock in a transaction on Wednesday, March 4th. The stock was sold at an average price of $55.74, for a total transaction of $99,774.60. Following the transaction, the director owned 4,006 shares of the company's stock, valued at $223,294.44. This represents a 30.88% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this link. Also, insider Josh Silverman sold 70,000 shares of Etsy stock in a transaction dated Tuesday, April 21st. The shares were sold at an average price of $65.00, for a total value of $4,550,000.00. Following the completion of the sale, the insider owned 130,694 shares of the company's stock, valued at $8,495,110. This trade represents a 34.88% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 168,636 shares of company stock worth $10,253,703. 2.80% of the stock is owned by insiders.

Institutional Investors Weigh In On Etsy

Several institutional investors and hedge funds have recently added to or reduced their stakes in ETSY. EFG International AG acquired a new position in shares of Etsy in the 4th quarter valued at about $33,000. SJS Investment Consulting Inc. grew its holdings in shares of Etsy by 12,600.0% during the 3rd quarter. SJS Investment Consulting Inc. now owns 762 shares of the company's stock worth $51,000 after purchasing an additional 756 shares during the period. Abich Financial Wealth Management LLC acquired a new stake in Etsy during the 3rd quarter worth approximately $51,000. Salomon & Ludwin LLC acquired a new stake in Etsy during the 3rd quarter worth approximately $55,000. Finally, Blue Trust Inc. raised its holdings in Etsy by 19.3% in the first quarter. Blue Trust Inc. now owns 1,238 shares of the company's stock valued at $62,000 after buying an additional 200 shares during the period. 99.53% of the stock is currently owned by institutional investors and hedge funds.

Etsy News Summary

Here are the key news stories impacting Etsy this week:

• Positive Sentiment: Q1 revenue beat estimates and Etsy reported improving marketplace trends: revenue was roughly $631.2M and management cited returning GMS growth and higher buyer activity. Online marketplace Etsy beats revenue estimates on steady demand
• Positive Sentiment: Etsy posted its first buyer growth in two years and is highlighting AI-driven product discovery to attract shoppers — a structural improvement if sustained. Etsy posts first buyer growth in two years amid AI push
• Positive Sentiment: Analysts raised targets and reiterated buy ratings after the results — Needham lifted its target to $85 and BTIG to $78, signaling increased upside expectations from brokers. Needham raises Etsy price target to $85 BTIG raises Etsy price target to $78
• Neutral Sentiment: Earnings call characterized the recovery as “cautiously upbeat” — management sees improvement but signaled prudence on pacing investment and growth assumptions. Earnings call signals cautious recovery
• Negative Sentiment: Profitability remains a concern: GAAP EPS was roughly $0.60 (slightly below some consensus reports), net margin stayed low and return on equity was negative — metrics that limit upside until margins improve. Etsy issues earnings results (MarketBeat)

Etsy Company Profile

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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