Etsy (NASDAQ:ETSY) Shares Gap Up - Time to Buy?

Etsy, Inc. (NASDAQ:ETSY - Get Free Report) gapped up before the market opened on Thursday . The stock had previously closed at $47.99, but opened at $52.46. Etsy shares last traded at $53.08, with a volume of 3,366,734 shares changing hands.

Analysts Set New Price Targets

Several research analysts recently issued reports on ETSY shares. Needham & Company LLC reaffirmed a "buy" rating and set a $60.00 target price on shares of Etsy in a research report on Thursday. Loop Capital lowered their target price on Etsy from $50.00 to $45.00 and set a "sell" rating for the company in a research report on Monday, August 12th. Oppenheimer lowered Etsy from an "outperform" rating to a "market perform" rating in a research report on Thursday, August 1st. Cantor Fitzgerald reaffirmed a "neutral" rating and set a $50.00 target price on shares of Etsy in a research report on Monday, October 7th. Finally, Wells Fargo & Company lowered their target price on Etsy from $58.00 to $47.00 and set an "underweight" rating for the company in a research report on Thursday, October 3rd. Four investment analysts have rated the stock with a sell rating, twelve have assigned a hold rating, seven have issued a buy rating and one has given a strong buy rating to the company's stock. According to MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus target price of $65.65.

Etsy Stock Performance

The business has a 50 day moving average price of $52.70 and a two-hundred day moving average price of $58.30. The stock has a market cap of $6.02 billion, a PE ratio of 23.49, a P/E/G ratio of 4.85 and a beta of 1.97.

Etsy (NASDAQ:ETSY - Get Free Report) last announced its earnings results on Wednesday, October 30th. The specialty retailer reported $0.45 earnings per share for the quarter, missing analysts' consensus estimates of $0.54 by ($0.09). Etsy had a negative return on equity of 51.94% and a net margin of 10.36%. The business had revenue of $662.40 million during the quarter, compared to analysts' expectations of $652.47 million. During the same quarter in the previous year, the firm earned $0.64 EPS. Etsy's quarterly revenue was up 4.1% on a year-over-year basis. As a group, research analysts anticipate that Etsy, Inc. will post 2.38 earnings per share for the current year.

Etsy declared that its board has approved a stock repurchase plan on Wednesday, October 30th that permits the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization permits the specialty retailer to buy up to 17.8% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company's management believes its shares are undervalued.

Insider Activity at Etsy

In related news, insider Toni Thompson Nadal sold 1,443 shares of the company's stock in a transaction that occurred on Thursday, October 3rd. The stock was sold at an average price of $51.11, for a total value of $73,751.73. Following the transaction, the insider now owns 592 shares in the company, valued at approximately $30,257.12. This represents a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. In other news, CAO Merilee Buckley sold 1,676 shares of the company's stock in a transaction on Thursday, October 3rd. The shares were sold at an average price of $51.11, for a total value of $85,660.36. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, insider Toni Thompson Nadal sold 1,443 shares of the company's stock in a transaction on Thursday, October 3rd. The stock was sold at an average price of $51.11, for a total transaction of $73,751.73. Following the completion of the transaction, the insider now directly owns 592 shares in the company, valued at approximately $30,257.12. The trade was a 0.00 % decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 4,619 shares of company stock worth $240,825. Insiders own 2.60% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Blue Trust Inc. grew its position in Etsy by 106.5% in the third quarter. Blue Trust Inc. now owns 448 shares of the specialty retailer's stock worth $26,000 after acquiring an additional 231 shares in the last quarter. Sheaff Brock Investment Advisors LLC boosted its position in Etsy by 7.0% during the first quarter. Sheaff Brock Investment Advisors LLC now owns 3,659 shares of the specialty retailer's stock valued at $251,000 after buying an additional 240 shares during the period. Meridian Management Co. boosted its position in Etsy by 0.4% during the second quarter. Meridian Management Co. now owns 63,409 shares of the specialty retailer's stock valued at $3,740,000 after buying an additional 241 shares during the period. GAMMA Investing LLC boosted its position in Etsy by 25.6% during the second quarter. GAMMA Investing LLC now owns 1,241 shares of the specialty retailer's stock valued at $73,000 after buying an additional 253 shares during the period. Finally, UMB Bank n.a. boosted its position in Etsy by 112.3% during the third quarter. UMB Bank n.a. now owns 552 shares of the specialty retailer's stock valued at $31,000 after buying an additional 292 shares during the period. 99.53% of the stock is currently owned by hedge funds and other institutional investors.

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.