Etsy (NASDAQ:ETSY) Shares Gap Up on Better-Than-Expected Earnings

Etsy, Inc. (NASDAQ:ETSY)’s stock price gapped up prior to trading on Thursday after the company announced better than expected quarterly earnings. The stock had previously closed at $44.05, but opened at $48.56. Etsy shares last traded at $48.0960, with a volume of 4,875,808 shares changing hands.

The specialty retailer reported $0.92 earnings per share for the quarter, beating the consensus estimate of $0.87 by $0.05. Etsy had a net margin of 5.78% and a negative return on equity of 31.10%. During the same period in the prior year, the company earned $1.03 earnings per share. The company’s revenue was up 3.5% on a year-over-year basis.

Etsy announced that its Board of Directors has approved a share repurchase plan on Thursday, December 18th that permits the company to repurchase $750.00 million in shares. This repurchase authorization permits the specialty retailer to repurchase up to 14.2% of its shares through open market purchases. Shares repurchase plans are often a sign that the company’s board of directors believes its stock is undervalued.

Key Headlines Impacting Etsy

Here are the key news stories impacting Etsy this week:

• Positive Sentiment: Etsy agreed to sell Depop to eBay for $1.2 billion in cash — the deal reduces distraction from a non-core business, immediately boosts liquidity and simplifies the company’s strategy to focus on its core marketplace. Read More.
• Positive Sentiment: Q4 2025 results: Etsy reported $0.92 EPS vs. consensus $0.87 and slight year-over-year revenue growth (GMS up modestly) — an earnings beat that supports the stock’s upside narrative. Read More.
• Neutral Sentiment: Company outlook: Etsy says its marketplace returned to slight GMS growth in Q4 and expects GMS growth in FY2026 — positive on trend but guidance is not aggressive and execution will matter. Read More.
• Negative Sentiment: Depop sale appears to be at a markdown vs. prior carrying value — outlets report Etsy took a loss on the divestiture, which raises questions about prior investment value and write-downs. Read More.
• Negative Sentiment: Profitability and returns remain pressured: media coverage notes lower Q4 profit despite higher revenue and Etsy shows a negative return on equity (? -31%) and thin net margins — structural margin recovery is not yet proven. Read More.
• Negative Sentiment: High short interest amplified the move but also increases volatility risk — some of the share-price strength may be driven by a short squeeze rather than fundamental re-rating. Read More.

Analyst Upgrades and Downgrades

Several research firms have recently commented on ETSY. Citigroup restated a “buy” rating on shares of Etsy in a report on Tuesday, December 30th. Deutsche Bank Aktiengesellschaft reaffirmed a “hold” rating and issued a $72.00 price target on shares of Etsy in a research report on Thursday, October 23rd. B. Riley Financial reissued a “buy” rating on shares of Etsy in a report on Thursday, October 30th. Moffett Nathanson restated a “neutral” rating on shares of Etsy in a report on Wednesday, October 29th. Finally, BTIG Research cut their target price on Etsy from $81.00 to $74.00 and set a “buy” rating on the stock in a research report on Tuesday, December 30th. One analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating, eighteen have assigned a Hold rating and three have assigned a Sell rating to the company’s stock. According to data from MarketBeat, the company has a consensus rating of “Hold” and an average price target of $63.52.

Insider Activity at Etsy

In related news, CAO Merilee Buckley sold 5,636 shares of the stock in a transaction that occurred on Monday, January 5th. The stock was sold at an average price of $58.45, for a total transaction of $329,424.20. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Josh Silverman sold 86,666 shares of the business’s stock in a transaction on Friday, January 2nd. The stock was sold at an average price of $57.46, for a total value of $4,979,828.36. Following the completion of the transaction, the insider directly owned 90,661 shares in the company, valued at approximately $5,209,381.06. This represents a 48.87% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 135,634 shares of company stock valued at $7,647,664. 2.80% of the stock is currently owned by corporate insiders.

Institutional Trading of Etsy

A number of large investors have recently added to or reduced their stakes in ETSY. Smartleaf Asset Management LLC boosted its stake in Etsy by 10.0% in the second quarter. Smartleaf Asset Management LLC now owns 1,734 shares of the specialty retailer’s stock valued at $88,000 after acquiring an additional 158 shares during the last quarter. Alamea Verwaltungs GmbH lifted its stake in Etsy by 2.3% in the second quarter. Alamea Verwaltungs GmbH now owns 7,380 shares of the specialty retailer’s stock valued at $370,000 after purchasing an additional 169 shares during the last quarter. Ameritas Investment Partners Inc. grew its holdings in Etsy by 0.6% during the second quarter. Ameritas Investment Partners Inc. now owns 28,705 shares of the specialty retailer’s stock valued at $1,440,000 after purchasing an additional 172 shares during the period. PNC Financial Services Group Inc. increased its position in Etsy by 2.4% in the fourth quarter. PNC Financial Services Group Inc. now owns 7,550 shares of the specialty retailer’s stock worth $419,000 after buying an additional 180 shares during the last quarter. Finally, GAMMA Investing LLC raised its stake in shares of Etsy by 6.6% in the fourth quarter. GAMMA Investing LLC now owns 3,333 shares of the specialty retailer’s stock valued at $185,000 after buying an additional 205 shares during the period. Hedge funds and other institutional investors own 99.53% of the company’s stock.

Etsy Trading Up 9.5%

The stock has a market cap of $4.76 billion, a PE ratio of 38.93, a PEG ratio of 10.65 and a beta of 1.77. The business has a 50-day moving average price of $55.76 and a 200 day moving average price of $59.57.

About Etsy

Etsy, Inc (NASDAQ: ETSY) operates a global e-commerce marketplace focused on handmade, vintage and unique goods. The platform connects individual artisans, small businesses and collectors with buyers seeking one-of-a-kind items, ranging from handcrafted jewelry and clothing to home décor and art supplies. Etsy’s revenue is primarily generated through listing fees, transaction fees on sales and optional seller services such as advertising and shipping labels.

Founded in 2005 and headquartered in Brooklyn, New York, Etsy has cultivated a community-driven ethos, encouraging sustainable practices and personal entrepreneurship.