Etsy (NYSE:ETSY) Stock Price Down 7.6% Following Analyst Downgrade

Etsy Inc (NYSE:ETSY) shares were down 7.6% on Thursday after Arete Research downgraded the stock from a buy rating to a hold rating. Arete Research now has a $81.00 price target on the stock. Etsy traded as low as $68.57 and last traded at $68.1150. 1,701,717 shares changed hands during mid-day trading, a decline of 48% from the average session volume of 3,249,410 shares. The stock had previously closed at $73.70.

A number of other analysts also recently commented on the company. Guggenheim boosted their price objective on Etsy from $85.00 to $95.00 and gave the stock a “buy” rating in a research note on Friday, August 7th. Sanford C. Bernstein upgraded shares of Etsy from a “hold” rating to a “strong-buy” rating in a research report on Friday, September 11th. Loop Capital set a $105.00 price target on shares of Etsy in a research report on Thursday, August 20th. Citigroup upped their price target on shares of Etsy from $60.00 to $92.00 and gave the company a “neutral” rating in a report on Friday, August 7th. Finally, Morgan Stanley upgraded shares of Etsy from an “underweight” rating to an “outperform” rating in a research report on Thursday, August 20th. Three research analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, seventeen have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $86.21.

Insider Buying and Selling at Etsy

In other Etsy news, CAO Merilee Buckley sold 405 shares of the business’s stock in a transaction dated Monday, August 17th. The stock was sold at an average price of $79.50, for a total transaction of $32,197.50. Following the sale, the chief accounting officer owned 167 shares in the company, valued at approximately $13,276.50. The trade was a 70.80% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Richard Edward Colburn III sold 2,913 shares of the business’s stock in a transaction dated Thursday, September 3rd. The stock was sold at an average price of $82.11, for a total value of $239,186.43. Following the sale, the insider owned 6,503 shares in the company, valued at approximately $533,961.33. The trade was a 30.94% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 271,149 shares of company stock valued at $21,391,497 over the last 90 days. 2.50% of the stock is owned by insiders.

Etsy News Roundup

Here are the key news stories impacting Etsy this week:

• Neutral Sentiment: Arete Research downgraded Etsy from “Buy” to “Hold” and lowered its price target to $81 from $85. Although the revised target remains above the recent trading level, the downgrade signals reduced confidence in Etsy’s near-term upside. Arete Downgrades Etsy to Neutral From Buy, Adjusts Price Target to $81 From $85
• Negative Sentiment: Reports say some Etsy sellers are considering or already moving off the platform as AI-generated products increasingly appear alongside handmade goods. A larger volume of low-quality “AI slop” could weaken Etsy’s curated, handmade-marketplace identity, reduce buyer trust and make it harder for genuine sellers to compete. Etsy sellers are quitting as AI slop floods the handmade marketplace
• Negative Sentiment: Investor concerns over Meta’s Muse AI agent are weighing on Etsy and other online marketplaces. Muse is designed to shop across websites on a user’s behalf, raising fears that AI agents could bypass direct visits to Etsy, weaken customer acquisition and reduce the value of Etsy’s marketplace gateway. Why Etsy Stock Is Trading Lower Today
• Negative Sentiment: The broader selloff in marketplace stocks linked to AI-agent adoption suggests the pressure is sector-wide, but Etsy may be particularly exposed because its valuation depends on maintaining unique buyer traffic and seller engagement. Etsy, CarGurus, Cars.com, and EverQuote Shares Are Falling

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the business. Sequoia Financial Advisors LLC boosted its position in Etsy by 10.3% during the 2nd quarter. Sequoia Financial Advisors LLC now owns 4,584 shares of the company’s stock worth $345,000 after acquiring an additional 429 shares during the period. Engineers Gate Manager LP lifted its position in shares of Etsy by 56.2% in the second quarter. Engineers Gate Manager LP now owns 77,568 shares of the company’s stock worth $5,843,000 after purchasing an additional 27,908 shares in the last quarter. Baird Financial Group Inc. purchased a new stake in shares of Etsy in the second quarter worth approximately $226,000. Allworth Financial LP boosted its holdings in shares of Etsy by 37.8% during the second quarter. Allworth Financial LP now owns 1,808 shares of the company’s stock worth $136,000 after purchasing an additional 496 shares during the period. Finally, Empirical Finance LLC purchased a new position in Etsy during the second quarter valued at approximately $267,000. 99.53% of the stock is owned by institutional investors and hedge funds.

Etsy Stock Performance

The stock has a market cap of $6.51 billion, a price-to-earnings ratio of 38.32, a price-to-earnings-growth ratio of 1.72 and a beta of 1.81. The company’s 50 day simple moving average is $79.36 and its two-hundred day simple moving average is $69.48.

Etsy (NYSE:ETSY) last issued its earnings results on Wednesday, August 5th. The company reported ($0.49) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.75 by ($1.24). Etsy had a net margin of 7.32% and a negative return on equity of 34.18%. The company had revenue of $668.31 million for the quarter, compared to analyst estimates of $646.10 million. During the same period last year, the business earned $0.25 EPS. The company’s quarterly revenue was down .7% on a year-over-year basis. On average, equities research analysts predict that Etsy Inc will post 3.94 earnings per share for the current fiscal year.

About Etsy

Etsy, Inc operates a global online marketplace that connects buyers with independent sellers offering handmade, personalized and vintage goods, as well as craft supplies. Its marketplace includes products such as jewelry, clothing, home décor, art, gifts and party supplies.

The company provides tools and services that support commerce on its platform, including seller storefronts, search and discovery features, payment processing, advertising, shipping solutions and customer support. Etsy primarily serves individual entrepreneurs and small businesses seeking to reach consumers interested in distinctive and creatively designed products.

Founded in 2005 and headquartered in Brooklyn, New York, Etsy serves buyers and sellers in numerous countries.