Etsy (NASDAQ:ETSY) Shares Gap Down – What’s Next?

Etsy, Inc. (NASDAQ:ETSY)’s stock price gapped down before the market opened on Wednesday . The stock had previously closed at $57.29, but opened at $54.00. Etsy shares last traded at $51.99, with a volume of 2,591,236 shares changing hands.

Wall Street Analyst Weigh In

A number of research firms recently weighed in on ETSY. Barclays reduced their price objective on shares of Etsy from $60.00 to $55.00 and set an “equal weight” rating on the stock in a research report on Thursday, October 31st. Bank of America decreased their price target on Etsy from $61.00 to $58.00 and set a “neutral” rating for the company in a research note on Thursday, October 24th. Wedbush 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 22nd. Deutsche Bank Aktiengesellschaft increased their target price on Etsy from $48.00 to $50.00 and gave the stock a “hold” rating in a research note on Friday, November 1st. Finally, Needham & Company LLC restated a “buy” rating and issued a $60.00 price target on shares of Etsy in a report on Thursday, October 31st. Four research analysts have rated the stock with a sell rating, fourteen have assigned a hold rating, seven have assigned a buy rating and one has assigned a strong buy rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus target price of $62.50.

Etsy Price Performance

The firm has a market capitalization of $5.77 billion, a P/E ratio of 26.19, a P/E/G ratio of 2.83 and a beta of 2.00. The stock’s fifty day simple moving average is $54.88 and its 200 day simple moving average is $53.84.

Etsy (NASDAQ:ETSY) last posted its quarterly earnings data on Wednesday, February 19th. The specialty retailer reported $1.03 EPS for the quarter, topping the consensus estimate of $0.95 by $0.08. Etsy had a net margin of 9.17% and a negative return on equity of 46.79%. During the same quarter last year, the firm posted $0.62 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 approved a stock repurchase plan on Wednesday, October 30th that allows the company to buyback $1.00 billion in shares. This buyback authorization allows the specialty retailer to buy up to 17.8% of its stock through open market purchases. Stock buyback plans are generally an indication that the company’s management believes its stock is undervalued.

Insider Transactions at Etsy

In other news, insider Nicholas Daniel sold 1,500 shares of the company’s stock in a transaction dated Monday, February 3rd. The shares were sold at an average price of $55.34, for a total transaction of $83,010.00. Following the transaction, the insider now owns 22,198 shares in the company, valued at $1,228,437.32. This represents a 6.33 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Insiders own 2.60% of the company’s stock.

Institutional Trading of Etsy

Several large investors have recently bought and sold shares of the stock. Meritage Portfolio Management lifted its stake in shares of Etsy by 152.4% during the third quarter. Meritage Portfolio Management now owns 264,689 shares of the specialty retailer’s stock worth $14,698,000 after buying an additional 159,820 shares during the period. Pacer Advisors Inc. raised its stake in Etsy by 183.9% in the 3rd quarter. Pacer Advisors Inc. now owns 5,961,952 shares of the specialty retailer’s stock worth $331,067,000 after acquiring an additional 3,861,668 shares during the last quarter. Principal Financial Group Inc. lifted its position in Etsy by 313.1% during the 3rd quarter. Principal Financial Group Inc. now owns 542,505 shares of the specialty retailer’s stock worth $30,125,000 after acquiring an additional 411,165 shares during the period. Thrivent Financial for Lutherans grew its stake in Etsy by 258.5% during the 3rd 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 during the last quarter. Finally, Louisiana State Employees Retirement System increased its holdings in shares of Etsy by 740.9% in the third quarter. Louisiana State Employees Retirement System now owns 55,500 shares of the specialty retailer’s stock valued at $3,082,000 after purchasing an additional 48,900 shares during the period. Hedge funds and other institutional investors own 99.53% of the company’s stock.

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.