Etsy (NYSE:ETSY) Trading Down 5% Following Insider Selling

Key Points

• Etsy shares fell 5% to about $77.91 after insiders sold roughly 36,280 shares, including CEO Josh Silverman’s sales and director Frederick Wilson’s 20,000-share sale. The transactions were largely executed under pre-arranged Rule 10b5-1 plans.
• Analyst sentiment remains generally positive, with a consensus “Moderate Buy” rating and an average price target of $84.68, despite some recent upgrades and downgrades.
• Recent results were mixed: quarterly revenue of $668.3 million exceeded estimates but declined 0.7% year over year, while adjusted EPS significantly missed expectations. Etsy is also scheduled to participate in the Goldman Sachs Communacopia and Technology Conference on September 9.

Etsy Inc (NYSE:ETSY - Get Free Report) shares dropped 5% during mid-day trading on Friday following insider selling activity. The stock traded as low as $78.00 and last traded at $77.9060. 816,006 shares changed hands during trading, a decline of 75% from the average session volume of 3,218,738 shares. The stock had previously closed at $82.03.

Specifically, insider Josh Silverman sold 11,696 shares of Etsy stock in a transaction that occurred on Tuesday, September 1st. The stock was sold at an average price of $81.85, for a total value of $957,317.60. Following the transaction, the insider directly owned 249,559 shares of the company's stock, valued at $20,426,404.15. The trade was a 4.48% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Josh Silverman sold 1,671 shares of the business's stock in a transaction on Thursday, September 3rd. The shares were sold at an average price of $84.00, for a total transaction of $140,364.00. Following the transaction, the insider directly owned 249,559 shares in the company, valued at approximately $20,962,956. The trade was a 0.67% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In other news, Director Frederick Wilson sold 20,000 shares of Etsy stock in a transaction dated Tuesday, September 1st. The stock was sold at an average price of $81.86, for a total value of $1,637,200.00. Following the completion of the transaction, the director owned 401,329 shares of the company's stock, valued at $32,852,791.94. The trade was a 4.75% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Analyst Upgrades and Downgrades

Several research firms have recently commented on ETSY. Sanford C. Bernstein upgraded Etsy from a "hold" rating to an "outperform" rating in a research note on Thursday, August 20th. BTIG Research downgraded Etsy from a "buy" rating to a "neutral" rating in a research report on Thursday, July 16th. Needham & Company LLC lifted their price target on Etsy from $85.00 to $100.00 and gave the stock a "buy" rating in a research report on Friday, August 7th. Susquehanna downgraded Etsy to a "neutral" rating in a research report on Thursday, May 21st. Finally, Roth Capital began coverage on Etsy in a report on Thursday, May 21st. They issued a "buy" rating for the company. Three investment analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating, seventeen have issued a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $84.68.

Key Stories Impacting Etsy

Here are the key news stories impacting Etsy this week:

• Positive Sentiment: Etsy will participate in the Goldman Sachs Communacopia and Technology Conference on September 9. Management’s fireside chat could provide updates on marketplace trends, growth initiatives and its outlook, although no new guidance was announced. Etsy investor conference announcement
• Neutral Sentiment: Analyst sentiment remains generally favorable. Etsy has a consensus “Moderate Buy” rating and an average price target of $84.68, with recent targets ranging from $76 to $92. Morgan Stanley upgraded the stock to “outperform,” while Cantor Fitzgerald maintained a “neutral” rating with an $85 target. Etsy analyst coverage
• Neutral Sentiment: Recent quarterly results were mixed: revenue of $668.31 million exceeded estimates, but revenue declined 0.7% year over year and adjusted earnings fell well short of consensus. The company is expected to report approximately $3.94 in earnings per share for the current fiscal year, while its elevated valuation leaves the stock sensitive to execution and growth concerns.
• Negative Sentiment: Insiders reported sales totaling about 36,280 shares. CEO Josh Silverman sold 13,367 shares, director Frederick Wilson sold 20,000 shares, and Richard Edward Colburn III sold 2,913 shares. Silverman and Wilson used Rule 10b5-1 plans, while Colburn’s sale covered tax withholding; all sellers retained meaningful positions. The transactions may nevertheless create near-term selling pressure and raise investor scrutiny. Etsy insider transaction filing

Etsy Price Performance

The stock has a market capitalization of $7.39 billion, a P/E ratio of 43.51, a PEG ratio of 2.04 and a beta of 1.81. The stock's fifty day moving average price is $81.31 and its 200 day moving average price is $67.25.

Etsy (NYSE:ETSY - Get Free Report) last released its quarterly earnings data on Wednesday, August 5th. The company reported ($0.49) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.75 by ($1.24). Etsy had a net margin of 7.32% and a negative return on equity of 34.18%. The company had revenue of $668.31 million during the quarter, compared to analysts' expectations of $646.10 million. During the same period last year, the firm earned $0.25 earnings per share. Etsy's quarterly revenue was down .7% on a year-over-year basis. On average, sell-side analysts expect that Etsy Inc will post 3.94 earnings per share for the current year.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of the company. Corient Private Wealth LP grew its position in shares of Etsy by 226.0% during the 2nd quarter. Corient Private Wealth LP now owns 73,639 shares of the company's stock worth $5,547,000 after buying an additional 51,050 shares in the last quarter. VIRGINIA RETIREMENT SYSTEMS ET Al bought a new stake in shares of Etsy in the second quarter valued at about $1,612,000. California State Teachers Retirement System lifted its stake in Etsy by 7,217.3% in the second quarter. California State Teachers Retirement System now owns 7,561,851 shares of the company's stock worth $569,634,000 after acquiring an additional 7,458,509 shares during the period. Ameritas Advisory Services LLC bought a new position in Etsy during the 2nd quarter worth about $675,000. Finally, Wedmont Private Capital purchased a new position in Etsy during the 2nd quarter valued at about $243,000. 99.53% of the stock is currently owned by hedge funds and other institutional investors.

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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