Etsy (NASDAQ:ETSY) Shares Gap Down - Here's What Happened

Etsy, Inc. (NASDAQ:ETSY - Get Free Report)'s share price 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 changing hands.

Analyst Ratings Changes

A number of research analysts have issued reports on ETSY shares. Citigroup dropped their target price on shares of Etsy from $56.00 to $53.00 and set a "neutral" rating for the company in a report on Thursday. Canaccord Genuity Group dropped their target price on shares of Etsy from $105.00 to $76.00 and set a "buy" rating for the company in a report on Thursday. Needham & Company LLC reaffirmed a "buy" rating and issued a $60.00 target price on shares of Etsy in a report on Thursday. Deutsche Bank Aktiengesellschaft cut shares of Etsy to a "hold" rating and dropped their target price for the company from $45.00 to $43.00 in a report on Wednesday, February 12th. Finally, Morgan Stanley dropped their target price on shares of Etsy from $45.00 to $44.00 and set an "underweight" rating for the company in a report on Thursday. Four research analysts have rated the stock with a sell rating, fourteen have issued a hold rating, seven have issued a buy rating and one has issued a strong buy rating to the company. According to data from MarketBeat, Etsy currently has a consensus rating of "Hold" and an average price target of $60.08.

Etsy Trading Down 0.3 %

The stock has a market capitalization of $5.77 billion, a PE ratio of 21.63, a PEG ratio of 2.55 and a beta of 2.00. The company's 50 day simple moving average is $54.58 and its 200 day simple moving average is $53.81.

Etsy (NASDAQ:ETSY - Get Free Report) last announced its quarterly earnings results 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. The company had revenue of $852.16 million for the quarter, compared to analyst estimates of $861.37 million. Etsy had a net margin of 10.80% and a negative return on equity of 46.62%. Etsy's revenue for the quarter was up 1.2% on a year-over-year basis. During the same quarter last year, the business earned $0.62 EPS. As a group, analysts predict that Etsy, Inc. will post 2.6 EPS for the current year.

Etsy declared that its Board of Directors has authorized a share buyback plan on Wednesday, October 30th that authorizes the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization authorizes the specialty retailer to buy up to 17.8% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company's leadership believes its shares are undervalued.

Insider Buying and Selling at Etsy

In related news, insider Nicholas Daniel sold 1,500 shares of Etsy stock in a transaction on Monday, February 3rd. The shares were sold at an average price of $55.34, for a total transaction of $83,010.00. Following the transaction, the insider now owns 22,198 shares in the company, valued at approximately $1,228,437.32. The trade was a 6.33 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. 2.60% of the stock is owned by company insiders.

Hedge Funds Weigh In On Etsy

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Lindbrook Capital LLC lifted its holdings in shares of Etsy by 55.7% during the 4th quarter. Lindbrook Capital LLC now owns 506 shares of the specialty retailer's stock valued at $27,000 after acquiring an additional 181 shares in the last quarter. Larson Financial Group LLC lifted its holdings in shares of Etsy by 8.7% during the 4th quarter. Larson Financial Group LLC now owns 2,728 shares of the specialty retailer's stock valued at $144,000 after acquiring an additional 218 shares in the last quarter. Blue Trust Inc. lifted its holdings in shares of Etsy by 106.5% during the 3rd quarter. Blue Trust Inc. now owns 448 shares of the specialty retailer's stock valued at $26,000 after acquiring an additional 231 shares in the last quarter. Heron Bay Capital Management lifted its holdings in shares of Etsy by 1.3% during the 4th quarter. Heron Bay Capital Management now owns 20,260 shares of the specialty retailer's stock valued at $1,072,000 after acquiring an additional 258 shares in the last quarter. Finally, Denver PWM LLC lifted its holdings in shares of Etsy by 36.1% during the 4th quarter. Denver PWM LLC now owns 1,090 shares of the specialty retailer's stock valued at $58,000 after acquiring an additional 289 shares in the last quarter. Institutional investors and hedge funds own 99.53% of the company's stock.

Etsy Company Profile

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.