Etsy (NASDAQ:ETSY) Shares Gap Up – Here’s Why

Etsy, Inc. (NASDAQ:ETSY) shares gapped up prior to trading on Monday . The stock had previously closed at $54.91, but opened at $57.00. Etsy shares last traded at $56.65, with a volume of 1,065,516 shares traded.

Analysts Set New Price Targets

ETSY has been the topic of a number of analyst reports. Bank of America cut their price objective on shares of Etsy from $61.00 to $58.00 and set a “neutral” rating on the stock in a research report on Thursday, October 24th. UBS Group reduced their price objective on shares of Etsy from $65.00 to $58.00 and set a “neutral” rating on the stock in a research report on Tuesday, October 15th. Morgan Stanley cut their target price on Etsy from $47.00 to $45.00 and set an “underweight” rating on the stock in a research note on Monday, January 13th. Jefferies Financial Group raised Etsy from an “underperform” rating to a “hold” rating and raised their price target for the stock from $45.00 to $55.00 in a research note on Monday, January 13th. Finally, Stifel Nicolaus reduced their target price on Etsy from $64.00 to $56.00 and set a “hold” rating on the stock in a research note on Monday, October 28th. Four research analysts have rated the stock with a sell rating, fourteen have issued a hold rating, seven have assigned a buy rating and one has given a strong buy rating to the stock. According to MarketBeat.com, Etsy currently has a consensus rating of “Hold” and an average target price of $62.42.

Etsy Stock Performance

The firm has a market capitalization of $6.07 billion, a price-to-earnings ratio of 27.53, a PEG ratio of 2.69 and a beta of 2.00. The firm’s 50 day simple moving average is $55.17 and its 200 day simple moving average is $54.31.

Etsy announced that its board has initiated a stock buyback program on Wednesday, October 30th that permits the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization permits the specialty retailer to repurchase up to 17.8% of its stock through open market purchases. Stock repurchase programs are often an indication that the company’s management believes its stock is undervalued.

Insider Buying and Selling at Etsy

In related news, insider Nicholas Daniel sold 1,500 shares of the company’s stock in a transaction that occurred 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 sale, the insider now directly owns 22,198 shares in the company, valued at approximately $1,228,437.32. This 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 the SEC website. 2.60% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Etsy

Several institutional investors have recently modified their holdings of the company. Blue Trust Inc. grew 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 worth $26,000 after acquiring an additional 231 shares during the last quarter. UMB Bank n.a. boosted its stake in shares of Etsy by 112.3% during the third quarter. UMB Bank n.a. now owns 552 shares of the specialty retailer’s stock worth $31,000 after buying an additional 292 shares during the period. Kestra Investment Management LLC purchased a new stake in Etsy during the 4th quarter valued at approximately $38,000. Capital Performance Advisors LLP acquired a new stake in Etsy during the 3rd quarter worth approximately $43,000. Finally, Versant Capital Management Inc increased its holdings in shares of Etsy by 153.1% in the fourth quarter. Versant Capital Management Inc now owns 825 shares of the specialty retailer’s stock valued at $44,000 after purchasing an additional 499 shares during the period. 99.53% of the stock is owned by hedge funds and other 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.