Etsy (NYSE:ETSY) Raised to “Buy” at Wall Street Zen

Etsy (NYSE:ETSY) was upgraded by equities research analysts at Wall Street Zen from a “hold” rating to a “buy” rating in a research report issued to clients and investors on Saturday, Wall Street Zen reports.

Several other equities analysts have also recently weighed in on the company. Bank of America reissued a “buy” rating and set a $115.00 price objective on shares of Etsy in a research report on Thursday. Deutsche Bank Aktiengesellschaft restated a “hold” rating and set a $100.00 price objective on shares of Etsy in a research note on Wednesday. Piper Sandler boosted their target price on shares of Etsy from $70.00 to $80.00 and gave the stock a “neutral” rating in a research note on Friday, August 7th. Needham & Company LLC lifted their price target on Etsy from $100.00 to $110.00 and gave the company a “buy” rating in a research note on Thursday. Finally, UBS Group upped their price target on shares of Etsy from $86.00 to $100.00 and gave the stock a “neutral” rating in a report on Thursday. One research analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating, sixteen have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, Etsy has a consensus rating of “Hold” and an average target price of $94.07.

Etsy Stock Down 0.0%

Shares of ETSY stock opened at $88.95 on Friday. The business has a 50-day simple moving average of $78.74 and a 200-day simple moving average of $68.21. The stock has a market cap of $7.67 billion, a PE ratio of 10.50, a price-to-earnings-growth ratio of 2.07 and a beta of 1.75. Etsy has a 52-week low of $44.00 and a 52-week high of $94.49.

Etsy (NYSE:ETSY) last posted its quarterly earnings data on Wednesday, October 28th. The company reported $7.31 earnings per share for the quarter, beating analysts’ consensus estimates of $0.76 by $6.55. Etsy had a net margin of 34.36% and a negative return on equity of 43.65%. The firm had revenue of $692.47 million for the quarter, compared to analyst estimates of $669.04 million. During the same period last year, the firm posted $0.63 EPS. Etsy’s quarterly revenue was up 10.9% on a year-over-year basis. Sell-side analysts anticipate that Etsy will post 3.94 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, insider Richard Colburn, III sold 4,472 shares of the company’s stock in a transaction on Monday, October 5th. The shares were sold at an average price of $71.31, for a total transaction of $318,898.32. Following the transaction, the insider directly owned 6,503 shares of the company’s stock, valued at $463,728.93. This represents a 40.75% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Josh Silverman sold 417 shares of the company’s stock in a transaction that occurred on Thursday, October 15th. The shares were sold at an average price of $84.47, for a total value of $35,223.99. Following the sale, the insider owned 262,617 shares in the company, valued at $22,183,257.99. The trade was a 0.16% 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. Insiders have sold 72,143 shares of company stock worth $5,885,613 in the last ninety days. 2.50% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the stock. Renaissance Technologies LLC grew its position in shares of Etsy by 11.1% in the first quarter. Renaissance Technologies LLC now owns 5,962,210 shares of the company’s stock valued at $297,991,000 after purchasing an additional 594,768 shares in the last quarter. Arrowstreet Capital Limited Partnership raised its position in shares of Etsy by 51.4% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 3,278,123 shares of the company’s stock valued at $163,841,000 after buying an additional 1,112,520 shares in the last quarter. Assenagon Asset Management S.A. increased its stake in Etsy by 48.0% in the 2nd quarter. Assenagon Asset Management S.A. now owns 1,613,333 shares of the company’s stock worth $121,532,000 after buying an additional 523,092 shares during the period. William Blair Investment Management LLC purchased a new position in Etsy in the second quarter valued at about $120,417,000. Finally, Dimensional Fund Advisors LP increased its holdings in shares of Etsy by 6.8% in the first quarter. Dimensional Fund Advisors LP now owns 1,573,696 shares of the company’s stock valued at $78,642,000 after purchasing an additional 100,542 shares during the period. 99.53% of the stock is owned by institutional investors.

Etsy News Summary

Here are the key news stories impacting Etsy this week:

• Positive Sentiment: Strong third-quarter results support the investment case. Etsy reported revenue of approximately $692.5 million, up 10.9% year over year and above expectations. Gross merchandise sales and advertising revenue strengthened, active buyers returned to growth, and management forecast fourth-quarter GMS growth of 5% to 7%. ETSY Q3 Earnings Beat Estimates on GMS & Ads Growth, Revenues Rise Y/Y
• Positive Sentiment: Profitability was a major catalyst for the recent rally. Adjusted EBITDA reached about $210 million, representing a 30.4% margin. Analysts at Wedbush said Etsy’s internal initiatives, particularly personalization, are contributing to GMS growth. Etsy’s Internal Initiatives Drive GMS Growth, Wedbush Says
• Positive Sentiment: Several analysts raised their price targets. Needham increased its target to $110 and Rosenblatt raised its target to $105, with both firms maintaining buy ratings. BTIG Research also forecast significant potential appreciation for Etsy shares. BTIG Research Forecasts Strong Price Appreciation for Etsy Stock
• Neutral Sentiment: Etsy is tightening its rules on AI-generated listings. The new CEO is attempting to protect Etsy’s handmade-focused identity by restricting AI-related seller content. The move could improve buyer trust and help shoppers return, but users are calling for an even broader ban, creating execution and seller-retention risks. Etsy’s new CEO cracks down on AI listings—and buyers start to return
• Negative Sentiment: Valuation concerns and cautious ratings are limiting upside. Morgan Stanley raised its target to $79 while retaining an equal-weight rating, and Wells Fargo raised its target to $80 but kept an underweight rating. Both targets remain below the stock’s recent trading level, suggesting some investors view the rally as ahead of near-term fundamentals.

About Etsy

Etsy, Inc operates an online marketplace that connects independent sellers with consumers seeking unique and creative goods. Its marketplace features products such as handmade items, personalized gifts, vintage merchandise, home décor, jewelry, clothing, craft supplies and other goods made, designed, selected or sourced by individual sellers and small businesses.

The company provides tools and services that support marketplace activity, including seller storefronts, search and discovery features, payment processing, advertising, shipping assistance and customer support.