Etsy (NYSE:ETSY) Stock Price Up 5.4% - Here's Why

Key Points

• Etsy shares rose 5.4% to $85.37 in midday trading, exceeding both the 50-day moving average of $79.76 and the 200-day average of $65.28.
• Analyst sentiment has improved, with Bank of America upgrading Etsy to “buy” and raising its target to $95, while Barclays lifted its target to $94. Despite these increases, the consensus rating remains “Hold,” with an average price target of $84.68.
• Etsy’s latest quarter included a significant EPS miss, though revenue exceeded expectations; meanwhile, insiders sold approximately $43.9 million of stock over the past three months under pre-arranged trading plans.

Shares of Etsy Inc (NYSE:ETSY - Get Free Report) were up 5.4% on Monday . The company traded as high as $85.37 and last traded at $85.37. 1,281,420 shares changed hands during mid-day trading, a decline of 60% from the average session volume of 3,243,100 shares. The stock had previously closed at $81.03.

Analysts Set New Price Targets

Several brokerages have recently commented on ETSY. Bank of America raised shares of Etsy from a "neutral" rating to a "buy" rating and raised their price objective for the stock from $88.00 to $95.00 in a research report on Thursday. Barclays raised their price target on shares of Etsy from $82.00 to $94.00 and gave the stock an "overweight" rating in a report on Friday, August 7th. Evercore set a $83.00 price objective on shares of Etsy in a report on Thursday, August 6th. Jefferies Financial Group raised their target price on Etsy from $62.00 to $80.00 and gave the company a "hold" rating in a research note on Tuesday, July 14th. Finally, Deutsche Bank Aktiengesellschaft upped their price target on Etsy from $74.00 to $75.00 and gave the stock a "hold" rating in a research note on Thursday, April 30th. Two investment analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating, eighteen have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus price target of $84.68.

Etsy Stock Up 5.4%

The firm's 50-day moving average price is $79.76 and its 200 day moving average price is $65.28. The company has a market capitalization of $8.11 billion, a P/E ratio of 47.67, a P/E/G ratio of 3.92 and a beta of 1.84.

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 the consensus estimate of $0.75 by ($1.24). The business had revenue of $668.31 million during the quarter, compared to the consensus estimate of $646.10 million. Etsy had a net margin of 7.32% and a negative return on equity of 34.18%. Etsy's revenue was down .7% compared to the same quarter last year. During the same period in the previous year, the business posted $0.25 EPS. As a group, equities research analysts expect that Etsy Inc will post 3.94 EPS for the current year.

Insider Buying and Selling at Etsy

In other news, CAO Merilee Buckley sold 405 shares of the company's stock in a transaction on Monday, August 17th. The shares were sold at an average price of $79.50, for a total value of $32,197.50. Following the completion of the sale, the chief accounting officer owned 167 shares in the company, valued at $13,276.50. This represents a 70.80% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Charles Baker sold 1,564 shares of the firm's stock in a transaction dated Tuesday, August 4th. The shares were sold at an average price of $85.88, for a total transaction of $134,316.32. Following the transaction, the chief financial officer directly owned 11,357 shares in the company, valued at $975,339.16. The trade was a 12.10% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 584,967 shares of company stock valued at $43,908,631 in the last three months. Insiders own 2.50% of the company's stock.

Hedge Funds Weigh In On Etsy

Several hedge funds have recently modified their holdings of the company. EFG International AG purchased a new stake in shares of Etsy during the fourth quarter valued at approximately $33,000. Global Retirement Partners LLC bought a new stake in shares of Etsy during the 2nd quarter worth $34,000. Blue Trust Inc. boosted its holdings in shares of Etsy by 19.3% in the 1st quarter. Blue Trust Inc. now owns 1,238 shares of the company's stock worth $62,000 after buying an additional 200 shares during the last quarter. Danske Bank A S bought a new position in Etsy during the third quarter valued at about $66,000. Finally, Federation des caisses Desjardins du Quebec increased its holdings in Etsy by 22.8% during the fourth quarter. Federation des caisses Desjardins du Quebec now owns 1,210 shares of the company's stock worth $67,000 after buying an additional 225 shares during the last quarter. Institutional investors own 99.53% of the company's stock.

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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