Etsy (NASDAQ:ETSY) Trading Down 9.3% – Here’s What Happened

Shares of Etsy, Inc. (NASDAQ:ETSY) fell 9.3% during trading on Wednesday . The stock traded as low as $49.77 and last traded at $49.0380. 1,417,514 shares changed hands during mid-day trading, a decline of 58% from the average session volume of 3,341,947 shares. The stock had previously closed at $54.08.

Analysts Set New Price Targets

Several brokerages have recently commented on ETSY. Citigroup restated a “buy” rating on shares of Etsy in a research report on Tuesday, December 30th. UBS Group boosted their price objective on shares of Etsy from $67.00 to $75.00 and gave the company a “neutral” rating in a research report on Monday, October 20th. Stifel Nicolaus reduced their target price on Etsy from $65.00 to $62.00 and set a “hold” rating on the stock in a report on Tuesday, January 27th. Morgan Stanley lifted their price target on Etsy from $61.00 to $65.00 and gave the company an “equal weight” rating in a research note on Wednesday, October 29th. Finally, Cantor Fitzgerald lowered their price target on Etsy from $64.00 to $55.00 and set a “neutral” rating for the company in a report on Thursday, January 8th. One analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating, eighteen have issued a Hold rating and three have given a Sell rating to the stock. According to MarketBeat, Etsy has a consensus rating of “Hold” and an average target price of $63.72.

Etsy Trading Down 12.3%

The firm has a market cap of $4.68 billion, a P/E ratio of 38.24, a price-to-earnings-growth ratio of 10.65 and a beta of 1.77. The business has a 50-day moving average of $56.75 and a two-hundred day moving average of $60.19.

Etsy announced that its board has approved a stock repurchase program on Thursday, December 18th that allows the company to buyback $750.00 million in outstanding shares. This buyback authorization allows the specialty retailer to purchase up to 14.2% of its stock through open market purchases. Stock buyback programs are often an indication that the company’s board of directors believes its shares are undervalued.

Insiders Place Their Bets

In other news, CAO Merilee Buckley sold 5,636 shares of the firm’s stock in a transaction dated 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 can be accessed through the SEC website. Also, insider Josh Silverman sold 21,666 shares of Etsy stock in a transaction that occurred on Monday, February 2nd. The stock was sold at an average price of $53.26, for a total value of $1,153,931.16. Following the completion of the transaction, the insider directly owned 90,661 shares in the company, valued at approximately $4,828,604.86. This represents a 19.29% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 135,934 shares of company stock valued at $7,663,369 over the last 90 days. 2.80% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the company. Heritage Wealth Advisors boosted its stake in shares of Etsy by 476.5% in the 2nd quarter. Heritage Wealth Advisors now owns 490 shares of the specialty retailer’s stock valued at $25,000 after purchasing an additional 405 shares during the last quarter. Elevation Point Wealth Partners LLC acquired a new position in Etsy in the second quarter valued at $35,000. Salomon & Ludwin LLC bought a new stake in Etsy during the third quarter valued at $55,000. SJS Investment Consulting Inc. grew its holdings in Etsy by 12,600.0% during the 3rd quarter. SJS Investment Consulting Inc. now owns 762 shares of the specialty retailer’s stock worth $51,000 after acquiring an additional 756 shares during the period. Finally, Abich Financial Wealth Management LLC bought a new position in shares of Etsy in the 3rd quarter worth about $51,000. Institutional investors and hedge funds own 99.53% of the company’s stock.

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.