Etsy (NASDAQ:ETSY) Trading Down 3.2% – Time to Sell?

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

Wall Street Analyst Weigh In

A number of brokerages have commented on ETSY. Needham & Company LLC restated a “buy” rating and set a $60.00 price objective on shares of Etsy in a research report on Thursday, October 31st. Cantor Fitzgerald reaffirmed a “neutral” rating and set a $50.00 price objective on shares of Etsy in a research report on Monday, October 7th. Wells Fargo & Company cut their target price on shares of Etsy from $47.00 to $44.00 and set an “underweight” rating for the company in a research report on Friday, November 1st. Bank of America decreased their target price on shares of Etsy from $61.00 to $58.00 and set a “neutral” rating for the company in a research note on Thursday, October 24th. Finally, Barclays cut their price objective on Etsy from $60.00 to $55.00 and set an “equal weight” rating for the company 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 issued a buy rating and one has issued a strong buy rating to the company’s stock. According to data from MarketBeat.com, Etsy has a consensus rating of “Hold” and an average price target of $63.17.

Etsy Stock Performance

The company has a market cap 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. The stock has a 50-day simple moving average of $54.51 and a 200 day simple moving average of $55.21.

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

Etsy announced that its Board of Directors has approved a stock buyback plan on Wednesday, October 30th that permits the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization permits the specialty retailer to buy up to 17.8% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company’s board believes its shares are undervalued.

Insider Transactions at Etsy

In other Etsy news, insider Nicholas Daniel sold 750 shares of the company’s stock in a transaction dated Friday, November 1st. The shares were sold at an average price of $52.50, for a total transaction of $39,375.00. Following the sale, the insider now directly owns 24,371 shares of the company’s stock, valued at approximately $1,279,477.50. This represents a 2.99 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. 2.60% of the stock is owned by insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the business. Pacer Advisors Inc. boosted its stake in Etsy by 183.9% in the third quarter. Pacer Advisors Inc. now owns 5,961,952 shares of the specialty retailer’s stock worth $331,067,000 after purchasing an additional 3,861,668 shares in the last quarter. Renaissance Technologies LLC grew its holdings in Etsy by 21.1% during the 2nd quarter. Renaissance Technologies LLC now owns 4,215,370 shares of the specialty retailer’s stock worth $248,623,000 after acquiring an additional 734,200 shares during the last quarter. Marshall Wace LLP increased its position in Etsy by 304.2% in the 2nd quarter. Marshall Wace LLP now owns 1,402,216 shares of the specialty retailer’s stock valued at $82,703,000 after acquiring an additional 1,055,296 shares in the last quarter. AQR Capital Management LLC raised its stake in shares of Etsy by 76.2% in the second quarter. AQR Capital Management LLC now owns 1,196,932 shares of the specialty retailer’s stock worth $69,685,000 after acquiring an additional 517,480 shares during the last quarter. Finally, Healthcare of Ontario Pension Plan Trust Fund acquired a new position in shares of Etsy during the third quarter worth approximately $55,530,000. 99.53% of the stock is owned by institutional investors and hedge funds.

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.