Etsy (NASDAQ:ETSY) Reaches New 12-Month Low After Earnings Miss

Etsy, Inc. (NASDAQ:ETSY) hit a new 52-week low on Thursday after the company announced weaker than expected quarterly earnings. The company traded as low as $56.60 and last traded at $58.00, with a volume of 4434449 shares. The stock had previously closed at $69.74.

The specialty retailer reported $0.48 earnings per share for the quarter, missing analysts’ consensus estimates of $0.49 by ($0.01). Etsy had a negative return on equity of 68.52% and a net margin of 10.75%. The business had revenue of $646.00 million during the quarter, compared to analysts’ expectations of $646.30 million. During the same period last year, the company earned $0.53 earnings per share. The firm’s revenue was up .8% compared to the same quarter last year.

Analyst Upgrades and Downgrades

ETSY has been the subject of a number of recent research reports. Piper Sandler boosted their price objective on shares of Etsy from $90.00 to $103.00 and gave the stock an “overweight” rating in a research note on Thursday, February 22nd. Needham & Company LLC reduced their price target on Etsy from $95.00 to $75.00 and set a “buy” rating for the company in a research report on Thursday. Canaccord Genuity Group cut their target price on Etsy from $125.00 to $105.00 and set a “buy” rating on the stock in a research note on Thursday. Wedbush decreased their price target on shares of Etsy from $70.00 to $65.00 and set a “neutral” rating for the company in a research report on Thursday. Finally, The Goldman Sachs Group lowered their price target on shares of Etsy from $80.00 to $70.00 and set a “neutral” rating on the stock in a report on Thursday. Four investment analysts have rated the stock with a sell rating, ten have assigned a hold rating and twelve have assigned a buy rating to the company. According to data from MarketBeat.com, Etsy has a consensus rating of “Hold” and a consensus target price of $79.96.

Insider Activity

In related news, CAO Merilee Buckley sold 1,671 shares of Etsy stock in a transaction dated Wednesday, April 3rd. The stock was sold at an average price of $65.04, for a total transaction of $108,681.84. Following the completion of the sale, the chief accounting officer now owns 2,827 shares of the company’s stock, valued at $183,868.08. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. In other Etsy news, CEO Josh Silverman sold 63,047 shares of the stock in a transaction dated Tuesday, February 27th. The stock was sold at an average price of $72.50, for a total transaction of $4,570,907.50. Following the sale, the chief executive officer now directly owns 23,140 shares of the company’s stock, valued at approximately $1,677,650. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CAO Merilee Buckley sold 1,671 shares of the business’s stock in a transaction dated Wednesday, April 3rd. The shares were sold at an average price of $65.04, for a total value of $108,681.84. Following the completion of the transaction, the chief accounting officer now directly owns 2,827 shares of the company’s stock, valued at approximately $183,868.08. The disclosure for this sale can be found here. Over the last three months, insiders have sold 66,968 shares of company stock valued at $4,836,827. Company insiders own 2.60% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of ETSY. Connor Clark & Lunn Investment Management Ltd. grew its stake in shares of Etsy by 23.0% during the 3rd quarter. Connor Clark & Lunn Investment Management Ltd. now owns 309,333 shares of the specialty retailer’s stock worth $19,977,000 after purchasing an additional 57,785 shares during the period. Northern Trust Corp increased its holdings in Etsy by 4.3% in the third quarter. Northern Trust Corp now owns 1,194,153 shares of the specialty retailer’s stock valued at $77,118,000 after buying an additional 48,934 shares in the last quarter. Harel Insurance Investments & Financial Services Ltd. acquired a new position in shares of Etsy in the fourth quarter worth about $2,273,000. International Assets Investment Management LLC purchased a new stake in shares of Etsy during the 4th quarter worth about $38,490,000. Finally, CVA Family Office LLC acquired a new stake in shares of Etsy during the 4th quarter valued at about $27,000. 99.53% of the stock is currently owned by hedge funds and other institutional investors.

Etsy Stock Performance

The stock has a market cap of $7.02 billion, a PE ratio of 27.05, a price-to-earnings-growth ratio of 4.89 and a beta of 2.00. The company has a 50 day moving average of $68.05 and a two-hundred day moving average of $71.56.

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.