Etsy (NASDAQ:ETSY) Trading Down 3.2% – What’s Next?

Etsy, Inc. (NASDAQ:ETSY)’s share price dropped 3.2% during mid-day trading on Tuesday . The stock traded as low as $54.78 and last traded at $54.80. Approximately 323,045 shares were traded during mid-day trading, a decline of 86% from the average daily volume of 2,378,700 shares. The stock had previously closed at $56.61.

Analyst Upgrades and Downgrades

ETSY has been the subject of several analyst reports. Citigroup lowered their price target on shares of Etsy from $65.00 to $54.00 and set a “neutral” rating for the company in a research report on Thursday, October 31st. Cantor Fitzgerald reaffirmed a “neutral” rating and set a $50.00 target price on shares of Etsy in a report on Monday, October 7th. JMP Securities reissued a “market perform” rating on shares of Etsy in a research note on Monday, December 16th. UBS Group dropped their price objective on Etsy from $65.00 to $58.00 and set a “neutral” rating for the company in a report on Tuesday, October 15th. Finally, Needham & Company LLC restated a “buy” rating and set a $60.00 target price on shares of Etsy in a report on Thursday, October 31st. Four equities research analysts have rated the stock with a sell rating, thirteen have given a hold rating, seven have given a buy rating and one has given a strong buy rating to the company’s stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus price target of $63.17.

Etsy Trading Down 5.2 %

The company has a 50 day moving average of $54.51 and a 200-day moving average of $55.21. The firm has a market capitalization of $6.04 billion, a P/E ratio of 27.39, a P/E/G ratio of 6.96 and a beta of 1.99.

Etsy (NASDAQ:ETSY) last announced its earnings results on Wednesday, October 30th. The specialty retailer reported $0.45 EPS for the quarter, missing the consensus estimate of $0.54 by ($0.09). The business had revenue of $662.40 million for the quarter, compared to the consensus estimate of $652.47 million. Etsy had a negative return on equity of 46.79% and a net margin of 9.17%. The firm’s revenue for the quarter was up 4.1% compared to the same quarter last year. During the same period in the prior year, the business posted $0.64 earnings per share. As a group, sell-side analysts forecast that Etsy, Inc. will post 2.25 EPS for the current fiscal year.

Etsy announced that its Board of Directors has initiated a share repurchase program on Wednesday, October 30th that permits the company to buyback $1.00 billion in outstanding shares. This buyback authorization permits the specialty retailer to purchase up to 17.8% of its stock through open market purchases. Stock buyback programs are typically a sign that the company’s leadership believes its stock is undervalued.

Insider Buying and Selling at Etsy

In other news, insider Nicholas Daniel sold 750 shares of the business’s stock in a transaction on Friday, November 1st. The stock was sold at an average price of $52.50, for a total transaction of $39,375.00. Following the completion of the transaction, the insider now owns 24,371 shares of the company’s stock, valued at approximately $1,279,477.50. The trade was a 2.99 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders own 2.60% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the business. Meritage Portfolio Management boosted its stake in shares of Etsy by 152.4% in the 3rd quarter. Meritage Portfolio Management now owns 264,689 shares of the specialty retailer’s stock valued at $14,698,000 after purchasing an additional 159,820 shares in the last quarter. Everence Capital Management Inc. bought a new stake in shares of Etsy during the third quarter worth $834,000. Pacer Advisors Inc. increased its holdings in shares of Etsy by 183.9% during the third quarter. Pacer Advisors Inc. now owns 5,961,952 shares of the specialty retailer’s stock worth $331,067,000 after buying an additional 3,861,668 shares in the last quarter. Principal Financial Group Inc. raised its position in Etsy by 313.1% in the third quarter. Principal Financial Group Inc. now owns 542,505 shares of the specialty retailer’s stock valued at $30,125,000 after purchasing an additional 411,165 shares during the last quarter. Finally, Thrivent Financial for Lutherans boosted its stake in shares of Etsy by 258.5% during the third quarter. Thrivent Financial for Lutherans now owns 118,434 shares of the specialty retailer’s stock valued at $6,576,000 after purchasing an additional 85,396 shares in the last quarter. Institutional investors own 99.53% of the company’s stock.

About Etsy

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.