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

Etsy, Inc. (NASDAQ:ETSY) 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 trading hands.

Analysts Set New Price Targets

Several analysts recently commented on the company. Morgan Stanley cut their price objective on Etsy from $47.00 to $45.00 and set an “underweight” rating for the company in a report on Monday, January 13th. Moffett Nathanson boosted their price target on Etsy from $60.00 to $61.00 and gave the company a “neutral” rating in a research note on Tuesday, November 26th. Deutsche Bank Aktiengesellschaft increased their price objective on shares of Etsy from $48.00 to $50.00 and gave the stock a “hold” rating in a research note on Friday, November 1st. Citigroup boosted their target price on shares of Etsy from $54.00 to $56.00 and gave the company a “neutral” rating in a research report on Friday, February 14th. Finally, JMP Securities reiterated a “market perform” rating on shares of Etsy in a research report on Monday, December 16th. Four equities research analysts have rated the stock with a sell rating, fourteen have issued a hold rating, seven have issued a buy rating and one has assigned a strong buy rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus target price of $62.50.

Etsy Stock Down 10.5 %

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

Etsy (NASDAQ:ETSY) last announced its quarterly earnings results 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 period in the previous year, the company posted $0.62 EPS. As a group, analysts anticipate that Etsy, Inc. will post 2.25 earnings per share for the current fiscal year.

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

Insiders Place Their Bets

In related news, insider Nicholas Daniel sold 1,500 shares of the firm’s stock in a transaction on Monday, February 3rd. The shares were sold at an average price of $55.34, for a total value of $83,010.00. Following the completion of the transaction, the insider now directly owns 22,198 shares of the company’s stock, valued at approximately $1,228,437.32. This trade represents a 6.33 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Corporate insiders own 2.60% of the company’s stock.

Hedge Funds Weigh In On Etsy

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