Etsy (NASDAQ:ETSY) Shares Down 6.5% – Should You Sell?

Etsy, Inc. (NASDAQ:ETSY)’s share price was down 6.5% during trading on Thursday . The stock traded as low as $49.78 and last traded at $49.58. Approximately 1,070,788 shares changed hands during mid-day trading, a decline of 75% from the average daily volume of 4,227,725 shares. The stock had previously closed at $53.05.

Wall Street Analysts Forecast Growth

A number of brokerages have recently weighed in on ETSY. Piper Sandler lowered their price target on Etsy from $52.00 to $40.00 and set a “neutral” rating on the stock in a report on Friday, April 11th. Stifel Nicolaus decreased their price objective on Etsy from $51.00 to $45.00 and set a “hold” rating for the company in a research report on Wednesday, April 23rd. Evercore ISI dropped their target price on Etsy from $60.00 to $54.00 and set an “outperform” rating on the stock in a report on Thursday, May 1st. Morgan Stanley lowered their price objective on shares of Etsy from $40.00 to $38.00 and set an “underweight” rating on the stock in a research report on Thursday, May 1st. Finally, Citigroup dropped their price objective on shares of Etsy from $53.00 to $48.00 and set a “neutral” rating on the stock in a research note on Friday, April 25th. Six research analysts have rated the stock with a sell rating, fifteen have given a hold rating and six have assigned a buy rating to the stock. According to data from MarketBeat.com, the company has an average rating of “Hold” and an average price target of $49.87.

Etsy Trading Up 0.0%

The stock has a market capitalization of $5.28 billion, a price-to-earnings ratio of 36.17, a price-to-earnings-growth ratio of 2.78 and a beta of 1.80. The company has a fifty day moving average of $51.09 and a two-hundred day moving average of $51.06.

Etsy (NASDAQ:ETSY) last posted its quarterly earnings data on Wednesday, April 30th. The specialty retailer reported $0.46 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.50 by ($0.04). The firm had revenue of $651.18 million for the quarter, compared to the consensus estimate of $642.22 million. Etsy had a negative return on equity of 39.60% and a net margin of 6.69%. Etsy’s quarterly revenue was up .8% on a year-over-year basis. During the same period in the prior year, the company posted $0.48 earnings per share. As a group, sell-side analysts predict that Etsy, Inc. will post 2.57 earnings per share for the current fiscal year.

Insider Transactions at Etsy

In other news, CEO Josh Silverman sold 151,666 shares of the business’s stock in a transaction dated Monday, June 2nd. The shares were sold at an average price of $57.68, for a total transaction of $8,748,094.88. Following the transaction, the chief executive officer now owns 107,809 shares in the company, valued at approximately $6,218,423.12. The trade was a 58.45% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, insider Nicholas Daniel sold 1,500 shares of the company’s stock in a transaction dated Tuesday, April 1st. The shares were sold at an average price of $48.24, for a total transaction of $72,360.00. Following the transaction, the insider now directly owns 34,822 shares of the company’s stock, valued at $1,679,813.28. This represents a 4.13% decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 205,418 shares of company stock worth $11,234,192. Company insiders own 2.80% of the company’s stock.

Hedge Funds Weigh In On Etsy

Several institutional investors and hedge funds have recently added to or reduced their stakes in ETSY. AQR Capital Management LLC grew its holdings in shares of Etsy by 423.7% during the 1st quarter. AQR Capital Management LLC now owns 4,658,225 shares of the specialty retailer’s stock worth $218,890,000 after purchasing an additional 3,768,787 shares in the last quarter. Acadian Asset Management LLC lifted its position in Etsy by 112.8% in the first quarter. Acadian Asset Management LLC now owns 2,803,956 shares of the specialty retailer’s stock worth $132,273,000 after purchasing an additional 1,486,142 shares during the period. Norges Bank bought a new position in Etsy in the fourth quarter worth $74,235,000. Victory Capital Management Inc. boosted its stake in Etsy by 703.8% during the fourth quarter. Victory Capital Management Inc. now owns 812,671 shares of the specialty retailer’s stock worth $42,982,000 after buying an additional 711,572 shares in the last quarter. Finally, Assenagon Asset Management S.A. increased its holdings in Etsy by 36.0% in the 1st quarter. Assenagon Asset Management S.A. now owns 2,026,263 shares of the specialty retailer’s stock valued at $95,599,000 after buying an additional 535,864 shares during the period. 99.53% of the stock is currently owned by institutional investors.

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.