Etsy (NYSE:ETSY) Shares Up 5.5% - Here's Why

Key Points

• Etsy shares rose 5.5% to approximately $73.06 in mid-day trading, though trading volume was 93% below the average daily level.
• Analyst sentiment remains positive, with MarketBeat reporting a “Moderate Buy” consensus rating and an average price target of $86.21.
• Etsy exceeded revenue expectations in its latest quarter but missed EPS estimates significantly; insiders have also sold about $13.0 million of stock over the past 90 days.

Etsy Inc (NYSE:ETSY - Get Free Report) shares were up 5.5% during mid-day trading on Wednesday. The company traded as high as $71.60 and last traded at $73.0580. 221,085 shares changed hands during mid-day trading, a decline of 93% from the average daily volume of 3,240,676 shares. The stock had previously closed at $69.28.

Wall Street Analyst Weigh In

A number of analysts have weighed in on the stock. Zacks Research raised shares of Etsy from a "hold" rating to a "strong-buy" rating in a report on Monday, August 31st. Truist Financial upped their target price on shares of Etsy from $85.00 to $90.00 and gave the company a "buy" rating in a report on Wednesday, July 22nd. Wells Fargo & Company increased their target price on shares of Etsy from $61.00 to $76.00 and gave the company an "underweight" rating in a research report on Friday, August 7th. Barclays lifted their price target on shares of Etsy from $82.00 to $94.00 and gave the stock an "overweight" rating in a research note on Friday, August 7th. Finally, Jefferies Financial Group boosted their price target on shares of Etsy from $62.00 to $80.00 and gave the company a "hold" rating in a research report on Tuesday, July 14th. Three equities research analysts have rated the stock with a Strong Buy rating, fourteen have given a Buy rating, seventeen have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $86.21.

Etsy Price Performance

The company has a market cap of $6.88 billion, a PE ratio of 40.51, a PEG ratio of 1.72 and a beta of 1.81. The stock has a 50 day simple moving average of $78.80 and a two-hundred day simple moving average of $69.80.

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

Insider Buying and Selling at Etsy

In other Etsy news, insider Josh Silverman sold 41,108 shares of Etsy stock in a transaction on Monday, August 3rd. The shares were sold at an average price of $83.11, for a total value of $3,416,485.88. Following the transaction, the insider directly owned 171,932 shares in the company, valued at approximately $14,289,268.52. The trade was a 19.30% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Charles Ballard sold 4,500 shares of the company's stock in a transaction dated Wednesday, August 26th. The shares were sold at an average price of $81.85, for a total transaction of $368,325.00. Following the completion of the sale, the director directly owned 4,239 shares of the company's stock, valued at $346,962.15. The trade was a 51.49% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 158,745 shares of company stock valued at $12,979,866. Company insiders own 2.50% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Global Retirement Partners LLC acquired a new stake in shares of Etsy during the second quarter worth $34,000. EFG International AG acquired a new position in Etsy in the 2nd quarter valued at $45,000. CoreCap Advisors LLC increased its stake in Etsy by 2,379.1% in the 2nd quarter. CoreCap Advisors LLC now owns 1,066 shares of the company's stock valued at $80,000 after buying an additional 1,023 shares during the period. Blue Trust Inc. raised its position in Etsy by 19.3% during 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. Finally, Johnson Financial Group Inc. purchased a new position in Etsy during the 2nd quarter worth $105,000. 99.53% of the stock is currently owned by hedge funds and other institutional investors.

About Etsy

Etsy, Inc operates a global online marketplace focused on unique and creative goods. Its platform connects buyers with independent sellers offering handmade products, vintage items, craft supplies, personalized merchandise, home décor, jewelry, clothing, and other specialty goods.

The company generates revenue primarily through marketplace services, including seller listing and transaction fees, payment processing, advertising, and other seller-focused services. Etsy also provides tools intended to help independent merchants manage their shops, market products, process orders, and reach customers.

Founded in 2005 and headquartered in Brooklyn, New York, Etsy serves buyers and sellers in numerous countries.

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