Morgan Stanley Issues Positive Forecast for Etsy (NASDAQ:ETSY) Stock Price

Key Points

• Morgan Stanley has raised its price target for Etsy from $50.00 to $54.00, indicating a potential downside of 3.50% from the current stock price.
• Despite a missed earnings estimate in its latest quarterly report, Etsy's revenue of $672.66 million surpassed expectations, with a year-over-year increase of 3.8%.
• Overall, Etsy's stock is rated as a "Hold" by analysts, with a consensus target price of $56.76, encompassing a mix of buy, hold, and sell ratings from various brokerages.

Etsy (NASDAQ:ETSY - Get Free Report) had its price objective increased by equities research analysts at Morgan Stanley from $50.00 to $54.00 in a research note issued to investors on Thursday,Benzinga reports. The brokerage presently has an "equal weight" rating on the specialty retailer's stock. Morgan Stanley's price target suggests a potential downside of 3.50% from the stock's current price.

A number of other research analysts have also recently commented on ETSY. Arete Research upgraded Etsy to a "strong sell" rating in a research note on Wednesday, June 11th. Truist Financial raised their target price on Etsy from $55.00 to $60.00 and gave the stock a "buy" rating in a research report on Tuesday, June 17th. Piper Sandler lowered their target price on Etsy from $52.00 to $40.00 and set a "neutral" rating for the company in a research report on Friday, April 11th. Raymond James Financial raised their target price on Etsy from $50.00 to $70.00 and gave the stock an "outperform" rating in a research report on Tuesday, July 22nd. Finally, Needham & Company LLC raised their target price on Etsy from $55.00 to $72.00 and gave the stock a "buy" rating in a research report on Thursday. Five investment analysts have rated the stock with a sell rating, sixteen have given a hold rating and eight have assigned a buy rating to the stock. According to MarketBeat.com, Etsy has a consensus rating of "Hold" and a consensus target price of $56.76.

Etsy Stock Performance

Shares of ETSY traded down $6.02 during trading hours on Thursday, reaching $55.96. The stock had a trading volume of 3,775,988 shares, compared to its average volume of 4,789,836. Etsy has a 12 month low of $40.05 and a 12 month high of $68.45. The stock has a market capitalization of $5.84 billion, a PE ratio of 39.97, a PEG ratio of 3.29 and a beta of 1.74. The company's 50-day moving average is $56.48 and its two-hundred day moving average is $51.38.

Etsy (NASDAQ:ETSY - Get Free Report) last announced 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). Etsy had a net margin of 6.69% and a negative return on equity of 39.60%. The firm had revenue of $672.66 million during the quarter, compared to the consensus estimate of $645.16 million. During the same quarter in the previous year, the company posted $0.41 earnings per share. The firm's revenue was up 3.8% on a year-over-year basis. Equities analysts anticipate that Etsy will post 2.57 earnings per share for the current fiscal year.

Insider Transactions at Etsy

In related news, insider Nicholas Daniel sold 1,500 shares of the company's stock in a transaction on Tuesday, July 1st. The shares were sold at an average price of $51.36, for a total value of $77,040.00. Following the completion of the transaction, the insider directly owned 34,683 shares in the company, valued at approximately $1,781,318.88. The trade was a 4.15% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Josh Silverman sold 151,666 shares of the company's stock in a transaction on Monday, June 2nd. The stock was sold at an average price of $57.68, for a total transaction of $8,748,094.88. Following the completion of the transaction, the chief executive officer owned 107,809 shares of the company's stock, valued at $6,218,423.12. This trade represents a 58.45% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 319,132 shares of company stock valued at $19,257,846. 2.80% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Sumitomo Mitsui Trust Group Inc. grew its position in Etsy by 155.7% in the second quarter. Sumitomo Mitsui Trust Group Inc. now owns 14,680 shares of the specialty retailer's stock worth $736,000 after acquiring an additional 8,940 shares in the last quarter. Ground Swell Capital LLC purchased a new position in Etsy in the second quarter worth $383,000. Caitong International Asset Management Co. Ltd purchased a new position in Etsy in the second quarter worth $106,000. Cardinal Point Capital Management ULC purchased a new position in Etsy in the second quarter worth $250,000. Finally, West Tower Group LLC bought a new position in shares of Etsy during the second quarter valued at about $201,000. 99.53% of the stock is currently owned by hedge funds and other institutional investors.

Etsy Company Profile

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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