Morgan Stanley Cuts Etsy (NASDAQ:ETSY) Price Target to $45.00

Etsy (NASDAQ:ETSY) had its price target decreased by equities research analysts at Morgan Stanley from $47.00 to $45.00 in a report released on Monday,Benzinga reports. The firm currently has an “underweight” rating on the specialty retailer’s stock. Morgan Stanley’s target price would indicate a potential downside of 14.35% from the company’s previous close.

A number of other analysts have also commented on ETSY. UBS Group cut their price target on Etsy from $65.00 to $58.00 and set a “neutral” rating on the stock in a research note on Tuesday, October 15th. Truist Financial lowered their target price on Etsy from $76.00 to $70.00 and set a “buy” rating for the company in a research report on Thursday, October 31st. The Goldman Sachs Group lowered Etsy from a “neutral” rating to a “sell” rating and reduced their price target for the company from $70.00 to $45.00 in a research report on Tuesday, October 15th. Needham & Company LLC restated a “buy” rating and set a $60.00 price objective on shares of Etsy in a research report on Thursday, October 31st. Finally, Cantor Fitzgerald reiterated a “neutral” rating and issued a $50.00 target price on shares of Etsy in a report on Monday, October 7th. Four equities research analysts have rated the stock with a sell rating, fourteen have assigned a hold rating, seven have given a buy rating and one has issued a strong buy rating to the company’s stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average target price of $62.54.

Etsy Price Performance

ETSY traded down $0.03 during trading on Monday, hitting $52.54. The stock had a trading volume of 598,641 shares, compared to its average volume of 2,797,754. Etsy has a one year low of $47.10 and a one year high of $80.30. The firm has a market cap of $5.91 billion, a price-to-earnings ratio of 26.81, a P/E/G ratio of 6.96 and a beta of 1.99. The company has a 50 day moving average price of $54.79 and a 200-day moving average price of $55.03.

Etsy (NASDAQ:ETSY) last posted its quarterly earnings results on Wednesday, October 30th. The specialty retailer reported $0.45 EPS for the quarter, missing analysts’ consensus estimates of $0.54 by ($0.09). Etsy had a negative return on equity of 46.79% and a net margin of 9.17%. The business had revenue of $662.40 million for the quarter, compared to analyst estimates of $652.47 million. During the same period last year, the firm posted $0.64 EPS. Etsy’s quarterly revenue was up 4.1% on a year-over-year basis. As a group, sell-side analysts predict that Etsy will post 2.25 EPS for the current fiscal year.

Etsy announced that its Board of Directors has approved a stock repurchase program on Wednesday, October 30th that authorizes the company to repurchase $1.00 billion in shares. This repurchase authorization authorizes the specialty retailer to purchase up to 17.8% of its shares through open market purchases. Shares repurchase programs are typically an indication that the company’s leadership believes its stock is undervalued.

Insider Activity

In other Etsy news, insider Nicholas Daniel sold 750 shares of Etsy stock in a transaction that occurred on Friday, November 1st. The shares were sold at an average price of $52.50, for a total transaction of $39,375.00. Following the transaction, the insider now owns 24,371 shares of the company’s stock, valued at $1,279,477.50. This trade represents a 2.99 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Corporate insiders own 2.60% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of the business. Blue Trust Inc. raised its stake in shares of Etsy by 106.5% during the 3rd quarter. Blue Trust Inc. now owns 448 shares of the specialty retailer’s stock worth $26,000 after purchasing an additional 231 shares during the period. UMB Bank n.a. raised its position in Etsy by 112.3% in the third quarter. UMB Bank n.a. now owns 552 shares of the specialty retailer’s stock worth $31,000 after acquiring an additional 292 shares during the period. Capital Performance Advisors LLP purchased a new position in Etsy in the third quarter valued at about $43,000. Versant Capital Management Inc grew its position in shares of Etsy by 153.1% during the 4th quarter. Versant Capital Management Inc now owns 825 shares of the specialty retailer’s stock valued at $44,000 after acquiring an additional 499 shares during the period. Finally, Prospera Private Wealth LLC purchased a new stake in shares of Etsy during the 3rd quarter worth approximately $59,000. Institutional investors own 99.53% of the company’s stock.

About Etsy

Etsy, Inc, together with its subsidiaries, operates two-sided online marketplaces that connect buyers and sellers in the United States, the United Kingdom, Germany, Canada, Australia, and France. Its primary marketplace is Etsy.com that connects artisans and entrepreneurs with various consumers. The company also offers Reverb, a musical instrument marketplace; Depop, a fashion resale marketplace; and Elo7, a Brazil-based marketplace for handmade and unique items.