Etsy (NYSE:ETSY) Rating Increased to Buy at Bank of America

Key Points

• Bank of America upgraded Etsy from “neutral” to “buy” and raised its price target from $88 to $105, implying approximately 30% upside from the reported share price.
• Analyst sentiment remains mixed: Etsy has an average “hold” rating and a consensus price target of $83.88, despite several recent buy ratings and target increases.
• Etsy’s latest quarter included a substantial EPS miss, though revenue exceeded estimates; quarterly revenue declined 0.7% year over year, while insiders sold roughly $45.1 million of stock during the last quarter.

Etsy (NYSE:ETSY - Get Free Report) was upgraded by research analysts at Bank of America from a "neutral" rating to a "buy" rating in a research note issued on Thursday,Benzinga reports. The firm currently has a $105.00 price target on the stock, up from their previous price target of $88.00. Bank of America's price objective points to a potential upside of 30.11% from the company's current price.

Other equities analysts also recently issued research reports about the company. Roth Capital initiated coverage on Etsy in a research report on Thursday, May 21st. They issued a "buy" rating on the stock. Needham & Company LLC upped their price target on shares of Etsy from $85.00 to $100.00 and gave the company a "buy" rating in a research note on Friday, August 7th. Wells Fargo & Company lifted their price objective on shares of Etsy from $61.00 to $76.00 and gave the stock an "underweight" rating in a research note on Friday, August 7th. Weiss Ratings downgraded shares of Etsy from a "hold (c)" rating to a "hold (c-)" rating in a research report on Thursday, August 6th. Finally, Guggenheim lifted their price objective on Etsy from $85.00 to $95.00 and gave the company a "buy" rating in a report on Friday, August 7th. One investment analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating, nineteen have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, Etsy has an average rating of "Hold" and a consensus target price of $83.88.

Etsy Price Performance

Etsy stock opened at $80.70 on Thursday. The company's 50-day moving average is $79.30 and its 200-day moving average is $64.88. The firm has a market capitalization of $7.66 billion, a PE ratio of 45.08, a P/E/G ratio of 5.48 and a beta of 1.84. Etsy has a fifty-two week low of $44.00 and a fifty-two week high of $87.97.

Etsy (NYSE:ETSY - Get Free Report) last announced its quarterly earnings results on Wednesday, August 5th. The company reported ($0.49) earnings per share for the quarter, missing analysts' consensus estimates of $0.75 by ($1.24). The business had revenue of $668.31 million for the quarter, compared to analyst estimates of $646.10 million. Etsy had a negative return on equity of 34.18% and a net margin of 7.32%.Etsy's quarterly revenue was down .7% compared to the same quarter last year. During the same period last year, the firm earned $0.25 EPS. As a group, analysts expect that Etsy will post 3.94 EPS for the current year.

Insider Buying and Selling

In related news, Director Frederick R. Wilson sold 20,000 shares of the business's stock in a transaction on Monday, August 3rd. The shares were sold at an average price of $83.22, for a total value of $1,664,400.00. Following the sale, the director owned 421,329 shares of the company's stock, valued at $35,062,999.38. The trade was a 4.53% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Josh Silverman sold 134,730 shares of the company's stock in a transaction dated Monday, June 1st. The shares were sold at an average price of $68.89, for a total value of $9,281,549.70. Following the completion of the sale, the insider owned 130,694 shares in the company, valued at $9,003,509.66. This trade represents a 50.76% decrease in their position. 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. In the last quarter, insiders sold 604,967 shares of company stock valued at $45,141,231. 2.50% of the stock is owned by company insiders.

Hedge Funds Weigh In On Etsy

A number of hedge funds have recently bought and sold shares of the company. Renaissance Technologies LLC raised its position in shares of Etsy by 11.1% in the 1st quarter. Renaissance Technologies LLC now owns 5,962,210 shares of the company's stock worth $297,991,000 after acquiring an additional 594,768 shares in the last quarter. AQR Capital Management LLC grew its position in shares of Etsy by 40.1% during the 4th 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 during the period. Van ECK Associates Corp lifted its position in shares of Etsy by 1.1% during the 4th quarter. Van ECK Associates Corp now owns 3,734,156 shares of the company's stock valued at $207,022,000 after acquiring an additional 39,067 shares during the period. Arrowstreet Capital Limited Partnership lifted its position in shares of Etsy by 51.4% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 3,278,123 shares of the company's stock valued at $163,841,000 after acquiring an additional 1,112,520 shares during the period. Finally, Assenagon Asset Management S.A. boosted its stake in Etsy by 48.0% during the second quarter. Assenagon Asset Management S.A. now owns 1,613,333 shares of the company's stock worth $121,532,000 after acquiring an additional 523,092 shares in the last quarter. Institutional investors own 99.53% of the company's stock.

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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