Etsy (NASDAQ:ETSY) Stock Price Down 3.2% – Should You Sell?

Shares of Etsy, Inc. (NASDAQ:ETSY) were down 3.2% during mid-day trading on Tuesday . The company traded as low as $54.78 and last traded at $54.80. Approximately 323,045 shares changed hands during trading, a decline of 86% from the average daily volume of 2,378,700 shares. The stock had previously closed at $56.61.

Wall Street Analysts Forecast Growth

Several brokerages recently commented on ETSY. Cantor Fitzgerald restated a “neutral” rating and issued a $50.00 price target on shares of Etsy in a research report on Monday, October 7th. Deutsche Bank Aktiengesellschaft raised their target price on Etsy from $48.00 to $50.00 and gave the stock a “hold” rating in a research report on Friday, November 1st. Barclays dropped their price target on Etsy from $60.00 to $55.00 and set an “equal weight” rating on the stock in a research report on Thursday, October 31st. Truist Financial decreased their price objective on Etsy from $76.00 to $70.00 and set a “buy” rating for the company in a research report on Thursday, October 31st. Finally, Stifel Nicolaus dropped their target price on Etsy from $64.00 to $56.00 and set a “hold” rating on the stock in a report on Monday, October 28th. Four equities research analysts have rated the stock with a sell rating, thirteen have assigned a hold rating, seven have assigned a buy rating and one has issued a strong buy rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus price target of $63.17.

Etsy Trading Down 1.0 %

The stock has a market capitalization of $6.01 billion, a price-to-earnings ratio of 27.26, a price-to-earnings-growth ratio of 6.96 and a beta of 1.99. The company has a fifty day moving average of $54.75 and a two-hundred day moving average of $55.16.

Etsy (NASDAQ:ETSY) last issued its quarterly earnings data on Wednesday, October 30th. The specialty retailer reported $0.45 earnings per share for the quarter, missing analysts’ consensus estimates of $0.54 by ($0.09). Etsy had a negative return on equity of 46.79% and a net margin of 9.17%. The firm had revenue of $662.40 million during the quarter, compared to analyst estimates of $652.47 million. During the same quarter in the previous year, the firm posted $0.64 earnings per share. Etsy’s quarterly revenue was up 4.1% compared to the same quarter last year. As a group, sell-side analysts predict that Etsy, Inc. will post 2.25 earnings per share for the current fiscal year.

Etsy declared that its Board of Directors has approved a share repurchase program on Wednesday, October 30th that allows the company to buyback $1.00 billion in shares. This buyback authorization allows the specialty retailer to repurchase up to 17.8% of its stock through open market purchases. Stock buyback programs are usually an indication that the company’s leadership believes its shares are undervalued.

Insider Activity

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

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of ETSY. Pacer Advisors Inc. increased its holdings in Etsy by 183.9% in the 3rd quarter. Pacer Advisors Inc. now owns 5,961,952 shares of the specialty retailer’s stock valued at $331,067,000 after buying an additional 3,861,668 shares during the period. Marshall Wace LLP increased its stake in Etsy by 304.2% in the second 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 during the period. Healthcare of Ontario Pension Plan Trust Fund acquired a new position in Etsy in the third quarter worth about $55,530,000. Holocene Advisors LP bought a new position in Etsy during the third quarter worth about $49,061,000. Finally, Renaissance Technologies LLC boosted its holdings in Etsy by 21.1% during the second quarter. Renaissance Technologies LLC now owns 4,215,370 shares of the specialty retailer’s stock valued at $248,623,000 after purchasing an additional 734,200 shares in the last quarter. 99.53% of the stock is 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.