Etsy (NASDAQ:ETSY) Shares Gap Up – Should You Buy?

Etsy, Inc. (NASDAQ:ETSY) gapped up before the market opened 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.

Wall Street Analyst Weigh In

Several research analysts have recently commented on ETSY shares. Truist Financial reduced their price target on Etsy from $70.00 to $67.00 and set a “buy” rating on the stock in a report on Wednesday, January 29th. JMP Securities reissued a “market perform” rating on shares of Etsy in a research report on Monday, December 16th. Wedbush cut their price objective on Etsy from $65.00 to $58.00 and set a “neutral” rating for the company in a research report on Tuesday, October 22nd. Morgan Stanley cut their price objective on Etsy from $47.00 to $45.00 and set an “underweight” rating for the company in a research report on Monday, January 13th. Finally, Wells Fargo & Company cut their price objective on Etsy from $47.00 to $44.00 and set an “underweight” rating for the company in a research report on Friday, November 1st. 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, the stock has a consensus rating of “Hold” and a consensus target price of $62.42.

Etsy Trading Up 0.4 %

The stock has a market cap of $6.20 billion, a price-to-earnings ratio of 28.18, a PEG ratio of 2.69 and a beta of 2.00. The stock’s 50 day moving average is $55.21 and its two-hundred day moving average is $54.44.

Etsy announced that its Board of Directors has authorized a share buyback program on Wednesday, October 30th that allows the company to buyback $1.00 billion in shares. This buyback authorization allows the specialty retailer to reacquire up to 17.8% of its stock through open market purchases. Stock buyback programs are often an indication that the company’s board of directors believes its shares are undervalued.

Institutional Trading of Etsy

Hedge funds have recently made changes to their positions in the company. Meritage Portfolio Management lifted its stake in shares of Etsy by 152.4% in the 3rd quarter. Meritage Portfolio Management now owns 264,689 shares of the specialty retailer’s stock worth $14,698,000 after acquiring an additional 159,820 shares during the period. Everence Capital Management Inc. acquired a new stake in Etsy in the third quarter valued at $834,000. Pacer Advisors Inc. grew its stake in shares of Etsy by 183.9% during the 3rd quarter. Pacer Advisors Inc. now owns 5,961,952 shares of the specialty retailer’s stock worth $331,067,000 after purchasing an additional 3,861,668 shares during the period. Principal Financial Group Inc. grew its stake in shares of Etsy by 313.1% during the 3rd quarter. Principal Financial Group Inc. now owns 542,505 shares of the specialty retailer’s stock worth $30,125,000 after purchasing an additional 411,165 shares during the period. Finally, Thrivent Financial for Lutherans increased its holdings in shares of Etsy by 258.5% in the 3rd quarter. Thrivent Financial for Lutherans now owns 118,434 shares of the specialty retailer’s stock valued at $6,576,000 after purchasing an additional 85,396 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.