Wedbush Issues Pessimistic Outlook for Etsy Earnings

Etsy, Inc. (NASDAQ:ETSY) – Research analysts at Wedbush lowered their Q1 2025 EPS estimates for shares of Etsy in a research report issued to clients and investors on Wednesday, February 19th. Wedbush analyst S. Devitt now expects that the specialty retailer will earn $0.43 per share for the quarter, down from their previous estimate of $0.51. The consensus estimate for Etsy’s current full-year earnings is $2.60 per share. Wedbush also issued estimates for Etsy’s Q2 2025 earnings at $0.48 EPS, Q3 2025 earnings at $0.58 EPS, Q4 2025 earnings at $1.09 EPS, FY2025 earnings at $2.58 EPS and FY2026 earnings at $2.86 EPS.

Several other research analysts have also recently issued reports on the company. Loop Capital dropped their price objective on Etsy from $45.00 to $40.00 and set a “sell” rating on the stock in a research note on Thursday. Wells Fargo & Company lifted their price objective on Etsy from $44.00 to $47.00 and gave the company an “underweight” rating in a report on Thursday. Cantor Fitzgerald reduced their price target on shares of Etsy from $46.00 to $43.00 and set a “neutral” rating for the company in a report on Thursday. Stifel Nicolaus lowered their price target on shares of Etsy from $56.00 to $51.00 and set a “hold” rating for the company in a research report on Thursday. Finally, Barclays reduced their price objective on shares of Etsy from $60.00 to $55.00 and set an “equal weight” rating for the company in a research note on Thursday, October 31st. Four investment analysts have rated the stock with a sell rating, fourteen have given a hold rating, seven have issued a buy rating and one has given a strong buy rating to the company’s stock. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus price target of $60.08.

Etsy Price Performance

Shares of ETSY stock opened at $51.40 on Friday. The company has a market capitalization of $5.78 billion, a P/E ratio of 21.69, a P/E/G ratio of 2.55 and a beta of 2.00. The company’s 50-day simple moving average is $54.58 and its two-hundred day simple moving average is $53.81. Etsy has a one year low of $47.10 and a one year high of $78.65.

Etsy (NASDAQ:ETSY) last posted its quarterly earnings results on Wednesday, February 19th. The specialty retailer reported $1.03 EPS for the quarter, topping analysts’ consensus estimates of $0.95 by $0.08. Etsy had a net margin of 10.80% and a negative return on equity of 46.62%. The firm had revenue of $852.16 million for the quarter, compared to analysts’ expectations of $861.37 million. During the same period in the prior year, the business posted $0.62 earnings per share. The business’s revenue for the quarter was up 1.2% on a year-over-year basis.

Institutional Investors Weigh In On Etsy

Several hedge funds have recently bought and sold shares of the stock. Blue Trust Inc. boosted its holdings in Etsy by 106.5% during the third quarter. Blue Trust Inc. now owns 448 shares of the specialty retailer’s stock worth $26,000 after buying an additional 231 shares in the last quarter. Lindbrook Capital LLC increased its stake in shares of Etsy by 55.7% in the 4th quarter. Lindbrook Capital LLC now owns 506 shares of the specialty retailer’s stock valued at $27,000 after purchasing an additional 181 shares in the last quarter. True Wealth Design LLC raised its holdings in Etsy by 112.7% in the 4th quarter. True Wealth Design LLC now owns 551 shares of the specialty retailer’s stock worth $29,000 after purchasing an additional 292 shares during the period. Hurley Capital LLC purchased a new position in Etsy during the fourth quarter worth approximately $32,000. Finally, Strategic Investment Solutions Inc. IL acquired a new stake in Etsy in the fourth quarter valued at approximately $34,000. Hedge funds and other institutional investors own 99.53% of the company’s stock.

Insider Activity at Etsy

In related news, insider Nicholas Daniel sold 1,500 shares of Etsy stock in a transaction that occurred on Monday, February 3rd. The stock was sold at an average price of $55.34, for a total transaction of $83,010.00. Following the completion of the transaction, the insider now directly owns 22,198 shares in the company, valued at approximately $1,228,437.32. This trade represents a 6.33 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 2.60% of the stock is currently owned by insiders.

Etsy announced that its Board of Directors has approved a stock repurchase program on Wednesday, October 30th that authorizes the company to repurchase $1.00 billion in shares. This repurchase authorization authorizes the specialty retailer to buy up to 17.8% of its shares through open market purchases. Shares repurchase programs are often an indication that the company’s board believes its shares are undervalued.

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.