Etsy (NASDAQ:ETSY) Shares Gap Down – Should You Sell?

Etsy, Inc. (NASDAQ:ETSY) gapped down prior to trading on Wednesday . The stock had previously closed at $57.29, but opened at $54.00. Etsy shares last traded at $51.99, with a volume of 2,591,236 shares trading hands.

Analysts Set New Price Targets

Several brokerages have issued reports on ETSY. Needham & Company LLC restated a “buy” rating and issued a $60.00 price target on shares of Etsy in a research report on Thursday. Canaccord Genuity Group decreased their price target on shares of Etsy from $105.00 to $76.00 and set a “buy” rating for the company in a research report on Thursday. Loop Capital decreased their price target on shares of Etsy from $45.00 to $40.00 and set a “sell” rating for the company in a research report on Thursday. Wells Fargo & Company increased their price objective on shares of Etsy from $44.00 to $47.00 and gave the stock an “underweight” rating in a research report on Thursday. Finally, Cantor Fitzgerald decreased their price objective on shares of Etsy from $46.00 to $43.00 and set a “neutral” rating for the company in a research report on Thursday. Four investment analysts have rated the stock with a sell rating, fourteen have assigned a hold rating, seven have given a buy rating and one has given a strong buy rating to the company. According to MarketBeat.com, Etsy has an average rating of “Hold” and an average price target of $60.08.

Etsy Price Performance

The firm has a market capitalization of $5.77 billion, a price-to-earnings ratio of 21.63, a PEG ratio of 2.55 and a beta of 2.00. The business’s fifty day simple moving average is $54.58 and its 200 day simple moving average is $53.81.

Etsy (NASDAQ:ETSY) last released its quarterly earnings data on Wednesday, February 19th. The specialty retailer reported $1.03 earnings per share for the quarter, beating analysts’ consensus estimates of $0.95 by $0.08. Etsy had a net margin of 10.80% and a negative return on equity of 46.62%. The firm had revenue of $852.16 million for the quarter, compared to analyst estimates of $861.37 million. During the same period last year, the firm earned $0.62 earnings per share. The business’s quarterly revenue was up 1.2% compared to the same quarter last year. Equities research analysts expect that Etsy, Inc. will post 2.6 earnings per share for the current fiscal year.

Etsy declared that its board has authorized a share repurchase plan on Wednesday, October 30th that allows the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization allows the specialty retailer to repurchase up to 17.8% of its shares through open market purchases. Shares repurchase plans are typically a sign that the company’s management believes its shares are undervalued.

Insider Buying and Selling at Etsy

In other Etsy news, insider Nicholas Daniel sold 1,500 shares of the firm’s stock in a transaction on Monday, February 3rd. The shares were sold at an average price of $55.34, for a total value of $83,010.00. Following the transaction, the insider now directly owns 22,198 shares of the company’s stock, valued at approximately $1,228,437.32. This trade represents a 6.33 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders own 2.60% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in the company. Lindbrook Capital LLC lifted its position in shares of Etsy by 55.7% during the fourth quarter. Lindbrook Capital LLC now owns 506 shares of the specialty retailer’s stock valued at $27,000 after purchasing an additional 181 shares in the last quarter. Larson Financial Group LLC lifted its position in shares of Etsy by 8.7% during the fourth quarter. Larson Financial Group LLC now owns 2,728 shares of the specialty retailer’s stock valued at $144,000 after purchasing an additional 218 shares in the last quarter. Blue Trust Inc. lifted its position in shares of Etsy by 106.5% during the third quarter. Blue Trust Inc. now owns 448 shares of the specialty retailer’s stock valued at $26,000 after purchasing an additional 231 shares in the last quarter. Heron Bay Capital Management lifted its position in shares of Etsy by 1.3% during the fourth quarter. Heron Bay Capital Management now owns 20,260 shares of the specialty retailer’s stock valued at $1,072,000 after purchasing an additional 258 shares in the last quarter. Finally, Denver PWM LLC lifted its position in shares of Etsy by 36.1% during the fourth quarter. Denver PWM LLC now owns 1,090 shares of the specialty retailer’s stock valued at $58,000 after purchasing an additional 289 shares in the last quarter. 99.53% of the stock is owned by institutional investors.

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.