Stifel Nicolaus Lowers Etsy's Stock Price Target

Etsy (NASDAQ:ETSY – Free Report) has seen its price target revised downward by Stifel Nicolaus from $64.00 to $56.00. This change was noted in a research note shared with investors on Monday, as reported by Benzinga. Stifel Nicolaus has currently assigned a 'hold' rating on the stock.

The outlook for Etsy has been further underscored by a variety of opinions from other investment firms. For instance, on October 23rd, Needham & Company LLC maintained a 'buy' rating for Etsy and set a target price of $60.00. Additionally, Wedbush adjusted their target, reducing it from $65.00 to $58.00 while offering a 'neutral' rating in a note dated October 22nd.

Moreover, Oppenheimer changed their stance on Etsy from 'outperform' to 'market perform' in a report released on August 1st. The Goldman Sachs Group also made significant adjustments on October 15th, downgrading their rating from 'neutral' to 'sell' and slashing their price target from $70.00 to $45.00. Furthermore, Wells Fargo & Company cut their target for Etsy from $58.00 to $47.00 and categorized the stock as 'underweight' in a note dated October 3rd.

Overall, the sentiment around Etsy is mixed, with four analysts rating the stock as a 'sell,' twelve giving it a 'hold' rating, seven issuing a 'buy' recommendation, and one analyst assigning a 'strong buy' rating. According to MarketBeat.com, the average rating for Etsy's stock stands at 'Hold,' with a consensus target price of $66.48.

Etsy Stock Performance

As of Monday, Etsy's stock opened at $47.99. The company has a market capitalization of $5.61 billion, with a PE ratio of 21.91 and a price-to-earnings-growth ratio of 4.85. Currently, Etsy's 12-month low is $47.10, while its 12-month high reaches up to $89.58. The stock's 50-day moving average price is $52.70, with its 200-day moving average at $58.30.

Earnings Report Insights

Etsy recently disclosed its earnings results on July 31st, where it reported an earnings per share (EPS) of $0.41, which was below the average estimate of $0.46, missing expectations by $0.05. The company experienced a negative return on equity of 51.94% and achieved a net margin of 10.36%. In terms of revenue, Etsy generated $647.80 million for the quarter, surpassing analyst predictions of $629.87 million. This revenue marks a modest increase of 3.0% compared to the same quarter the previous year. Analysts anticipate Etsy will report an EPS of 2.38 for the ongoing fiscal year.

Share Buyback Announcement

On October 30th, Etsy's Board of Directors approved a substantial share repurchase program, allowing the company to buy back $1.00 billion of its outstanding shares. This plan facilitates the purchase of up to 17.8% of its shares through open market transactions, reflecting the management's confidence that the stock is undervalued.

Insider Trading Activity

In related developments, insider Nicholas Daniel sold 750 shares of Etsy on September 3rd, executing this transaction at an average price of $55.40, which totaled $41,550. Following this sale, Daniel holds 18,083 shares valued at approximately $1,001,798.20. Notably, this sale does not significantly alter his ownership percentage. Additionally, CAO Merilee Buckley sold 1,676 shares on October 3rd, with those shares averaging $51.11 each, leading to a total sale of about $85,660.36. In the prior quarter, insiders sold a total of 4,619 shares valued at $240,825, and company insiders collectively own about 2.60% of Etsy's stock.

Institutional Investors' Moves

Several institutional investors recently adjusted their stakes in Etsy. Amalgamated Bank increased its holding by 9.9% during the third quarter, owning 37,176 shares valued at approximately $2,064,000 after acquiring an additional 3,351 shares. United Advisor Group LLC established a new stake worth $220,000 in the same quarter. Other firms like Moloney Securities Asset Management LLC invested an estimated $1,134,000 in Etsy, while Harbor Capital Advisors Inc. expanded its position by 134.9%, bringing its total shares to 48,226, worth around $2,678,000. Furthermore, Rice Hall James & Associates LLC raised its stake by an impressive 647.7%, now holding 191,062 shares valued at about $10,610,000. Institutional investors control around 99.53% of Etsy's stock.

Company Overview

Etsy, Inc., along with its subsidiaries, operates two-sided online marketplaces connecting buyers and sellers across various countries, including the United States, the United Kingdom, Germany, Canada, Australia, and France. Its main platform, Etsy.com, serves as a marketplace for artisans and entrepreneurs to reach consumers. Etsy also runs Reverb (a musical instrument marketplace), Depop (focused on fashion resale), and Elo7 (a platform for unique items based in Brazil).

Etsy, Stocks, Forecast