Etsy (NYSE:ETSY) Stock Price Down 7.6% - Should You Sell?

Key Points

• Etsy shares fell 7.6% to about $68.12, with trading volume roughly 48% below its average. The stock is near its 200-day moving average of $69.40 and well below its 50-day average of $79.96.
• Analyst sentiment remains generally positive, with a consensus “Moderate Buy” rating and an average price target of $86.21, although ratings range from Strong Buy to Sell.
• Etsy’s latest quarter showed mixed results: revenue of $668.31 million exceeded expectations, but EPS missed estimates by $1.24 and revenue declined 0.7% year over year. Insiders have sold more than $21 million in shares over the past three months, while institutional investors own 99.53% of the stock.

Shares of Etsy Inc (NYSE:ETSY - Get Free Report) dropped 7.6% on Thursday . The company traded as low as $68.57 and last traded at $68.1150. 1,701,717 shares traded hands during trading, a decline of 48% from the average session volume of 3,249,410 shares. The stock had previously closed at $73.70.

Analyst Upgrades and Downgrades

A number of brokerages have recently commented on ETSY. Sanford C. Bernstein raised shares of Etsy from a "hold" rating to a "strong-buy" rating in a research note on Friday, September 11th. Oppenheimer upgraded Etsy from a "market perform" rating to an "outperform" rating and set a $90.00 price target for the company in a report on Tuesday, September 15th. Wall Street Zen lowered Etsy from a "buy" rating to a "hold" rating in a research report on Sunday, May 31st. Jefferies Financial Group upped their target price on Etsy from $62.00 to $80.00 and gave the stock a "hold" rating in a research report on Tuesday, July 14th. Finally, Barclays increased their target price on Etsy from $82.00 to $94.00 and gave the company an "overweight" rating in a research note on Friday, August 7th. Three equities research analysts have rated the stock with a Strong Buy rating, fourteen have issued a Buy rating, seventeen have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of $86.21.

Etsy Trading Down 7.8%

The stock's 50-day moving average price is $79.96 and its 200-day moving average price is $69.40. The company has a market capitalization of $6.45 billion, a P/E ratio of 38.02, a P/E/G ratio of 1.88 and a beta of 1.81.

Etsy (NYSE:ETSY - Get Free Report) last released 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 the consensus estimate of $646.10 million. Etsy had a net margin of 7.32% and a negative return on equity of 34.18%. The business's quarterly revenue was down .7% on a year-over-year basis. During the same period last year, the firm posted $0.25 EPS. Sell-side analysts expect that Etsy Inc will post 3.94 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Etsy news, insider Josh Silverman sold 92,404 shares of Etsy stock in a transaction dated Wednesday, July 1st. The stock was sold at an average price of $74.93, for a total transaction of $6,923,831.72. Following the transaction, the insider owned 139,884 shares of the company's stock, valued at $10,481,508.12. The trade was a 39.78% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Frederick Wilson sold 20,000 shares of the business's stock in a transaction that occurred on Wednesday, July 1st. The shares were sold at an average price of $74.39, for a total transaction of $1,487,800.00. Following the transaction, the director directly owned 441,329 shares in the company, valued at $32,830,464.31. The trade was a 4.34% decrease in their ownership of the stock. 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. Over the last three months, insiders have sold 271,149 shares of company stock worth $21,391,497. 2.50% of the stock is owned by corporate insiders.

Institutional Trading of Etsy

Several large investors have recently made changes to their positions in ETSY. PNC Financial Services Group Inc. boosted its stake in Etsy by 2.4% during the fourth quarter. PNC Financial Services Group Inc. now owns 7,550 shares of the company's stock valued at $419,000 after buying an additional 180 shares during the period. Blue Trust Inc. boosted its position in shares of Etsy by 19.3% during the 1st quarter. Blue Trust Inc. now owns 1,238 shares of the company's stock valued at $62,000 after acquiring an additional 200 shares during the last quarter. Lmcg Investments LLC grew its holdings in shares of Etsy by 0.3% during the first quarter. Lmcg Investments LLC now owns 71,569 shares of the company's stock worth $3,577,000 after purchasing an additional 249 shares in the last quarter. Modera Wealth Management LLC increased its position in shares of Etsy by 1.3% in the first quarter. Modera Wealth Management LLC now owns 23,889 shares of the company's stock worth $1,194,000 after purchasing an additional 302 shares during the last quarter. Finally, Compound Planning Inc. raised its stake in Etsy by 8.6% in the first quarter. Compound Planning Inc. now owns 4,346 shares of the company's stock valued at $217,000 after purchasing an additional 346 shares in the last quarter. Institutional investors own 99.53% of the company's stock.

Etsy Company Profile

Etsy, Inc operates a global online marketplace that connects buyers with independent sellers offering handmade, personalized and vintage goods, as well as craft supplies. Its marketplace includes products such as jewelry, clothing, home décor, art, gifts and party supplies.

The company provides tools and services that support commerce on its platform, including seller storefronts, search and discovery features, payment processing, advertising, shipping solutions and customer support. Etsy primarily serves individual entrepreneurs and small businesses seeking to reach consumers interested in distinctive and creatively designed products.

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

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