Etsy (NASDAQ:ETSY) Reaches New 1-Year Low – Time to Sell?

Etsy, Inc. (NASDAQ:ETSY)’s stock price hit a new 52-week low on Wednesday . The company traded as low as $43.68 and last traded at $43.74, with a volume of 1175291 shares traded. The stock had previously closed at $44.66.

Analyst Upgrades and Downgrades

A number of brokerages recently weighed in on ETSY. JPMorgan Chase & Co. began coverage on shares of Etsy in a research report on Wednesday. They set a “neutral” rating and a $50.00 target price for the company. 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 research report on Thursday, February 20th. 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 research report on Thursday, February 20th. Deutsche Bank Aktiengesellschaft lowered shares of Etsy to a “hold” rating and dropped their target price for the stock from $45.00 to $43.00 in a research report on Wednesday, February 12th. Finally, Moffett Nathanson upped their target price on shares of Etsy from $60.00 to $61.00 and gave the stock a “neutral” rating in a research report on Tuesday, November 26th. Four research analysts have rated the stock with a sell rating, fifteen have assigned a hold rating, seven have issued a buy rating and one has issued a strong buy rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average target price of $58.42.

Etsy Stock Performance

The company’s fifty day simple moving average is $52.06 and its 200-day simple moving average is $53.07. The company has a market capitalization of $4.80 billion, a P/E ratio of 18.84, a PEG ratio of 2.57 and a beta of 2.23.

Etsy (NASDAQ:ETSY) last issued its earnings results on Wednesday, February 19th. The specialty retailer reported $1.03 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.95 by $0.08. Etsy had a net margin of 10.80% and a negative return on equity of 46.62%. The company had revenue of $852.16 million for the quarter, compared to analysts’ expectations of $861.37 million. During the same period in the prior year, the business earned $0.62 EPS. The firm’s quarterly revenue was up 1.2% on a year-over-year basis. On average, sell-side analysts predict that Etsy, Inc. will post 2.57 EPS for the current year.

Insiders Place Their Bets

In related news, insider Nicholas Daniel sold 1,500 shares of the stock in a transaction that occurred on Monday, March 3rd. The shares were sold at an average price of $50.48, for a total transaction of $75,720.00. Following the completion of the sale, the insider now owns 20,698 shares of the company’s stock, valued at $1,044,835.04. This represents a 6.76 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, CEO Josh Silverman sold 21,666 shares of Etsy stock in a transaction on Monday, February 24th. The stock was sold at an average price of $52.05, for a total transaction of $1,127,715.30. Following the completion of the transaction, the chief executive officer now directly owns 5,004 shares in the company, valued at $260,458.20. This represents a 81.24 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 24,666 shares of company stock worth $1,286,445 in the last three months. Corporate insiders own 2.60% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in ETSY. Lindbrook Capital LLC grew its stake in Etsy by 55.7% during the 4th quarter. Lindbrook Capital LLC now owns 506 shares of the specialty retailer’s stock worth $27,000 after buying an additional 181 shares during the last quarter. True Wealth Design LLC grew its stake in Etsy by 112.7% during the 4th quarter. True Wealth Design LLC now owns 551 shares of the specialty retailer’s stock worth $29,000 after buying an additional 292 shares during the last quarter. Hurley Capital LLC purchased a new position in Etsy during the 4th quarter worth $32,000. Strategic Investment Solutions Inc. IL purchased a new position in Etsy during the 4th quarter worth $34,000. Finally, Summit Securities Group LLC purchased a new position in Etsy during the 4th quarter worth $37,000. 99.53% of the stock is currently 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.