Etsy (NYSE:ETSY) Stock Rating Raised to Buy at Wall Street Zen

Wall Street Zen upgraded shares of Etsy (NYSE:ETSY) from a hold rating to a buy rating in a research note released on Saturday morning,Wall Street Zen reports.

A number of other brokerages have also recently weighed in on ETSY. The Goldman Sachs Group increased their price target on Etsy from $89.00 to $108.00 and gave the stock a “neutral” rating in a research report on Wednesday. Seaport Research Partners upgraded Etsy to a “buy” rating in a research report on Thursday, August 20th. B. Riley Financial upped their price objective on Etsy from $82.00 to $87.00 and gave the stock a “neutral” rating in a research note on Thursday. Piper Sandler increased their target price on Etsy from $70.00 to $80.00 and gave the stock a “neutral” rating in a research report on Friday, August 7th. Finally, Wedbush raised their target price on Etsy from $88.00 to $99.00 and gave the company a “neutral” rating in a research note on Thursday. One research analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating, seventeen have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company currently has an average rating of “Hold” and an average price target of $94.07.

Etsy Trading Down 2.9%

Etsy stock opened at $88.95 on Friday. Etsy has a 52 week low of $44.00 and a 52 week high of $94.49. The stock has a market cap of $7.67 billion, a P/E ratio of 10.50, a price-to-earnings-growth ratio of 2.07 and a beta of 1.86. The stock has a 50 day moving average of $78.74 and a 200-day moving average of $68.21.

Etsy (NYSE:ETSY) last announced its quarterly earnings data on Wednesday, October 28th. The company reported $7.31 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.76 by $6.55. Etsy had a negative return on equity of 43.65% and a net margin of 34.36%. The firm had revenue of $692.47 million for the quarter, compared to analysts’ expectations of $669.04 million. During the same quarter in the prior year, the firm posted $0.63 earnings per share. Etsy’s revenue for the quarter was up 10.9% compared to the same quarter last year. As a group, equities analysts predict that Etsy will post 3.94 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, insider Josh Silverman sold 417 shares of the company’s stock in a transaction that occurred on Thursday, October 15th. The shares were sold at an average price of $84.47, for a total value of $35,223.99. Following the completion of the sale, the insider directly owned 262,617 shares of the company’s stock, valued at approximately $22,183,257.99. This represents a 0.16% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Richard Colburn, III sold 4,472 shares of the stock in a transaction that occurred on Monday, October 5th. The shares were sold at an average price of $71.31, for a total transaction of $318,898.32. Following the completion of the transaction, the insider owned 6,503 shares of the company’s stock, valued at $463,728.93. This trade represents a 40.75% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 133,251 shares of company stock worth $10,966,499. 2.50% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Etsy

Several hedge funds have recently modified their holdings of ETSY. Global Retirement Partners LLC bought a new stake in shares of Etsy in the 2nd quarter worth approximately $34,000. EFG International AG bought a new stake in shares of Etsy in the 2nd quarter worth about $45,000. Signaturefd LLC increased its holdings in shares of Etsy by 61.8% during the third quarter. Signaturefd LLC now owns 762 shares of the company’s stock worth $54,000 after buying an additional 291 shares in the last quarter. CoreCap Advisors LLC increased its holdings in Etsy by 2,379.1% during the 2nd quarter. CoreCap Advisors LLC now owns 1,066 shares of the company’s stock valued at $80,000 after purchasing an additional 1,023 shares in the last quarter. Finally, Johnson Financial Group Inc. bought a new position in Etsy in the 2nd quarter valued at $105,000. 99.53% of the stock is currently owned by institutional investors and hedge funds.

Key Etsy News

Here are the key news stories impacting Etsy this week:

• Positive Sentiment: Strong third-quarter results support the investment case. Etsy reported revenue of approximately $692.5 million, up 10.9% year over year and above expectations. Gross merchandise sales and advertising revenue strengthened, active buyers returned to growth, and management forecast fourth-quarter GMS growth of 5% to 7%. ETSY Q3 Earnings Beat Estimates on GMS & Ads Growth, Revenues Rise Y/Y
• Positive Sentiment: Profitability was a major catalyst for the recent rally. Adjusted EBITDA reached about $210 million, representing a 30.4% margin. Analysts at Wedbush said Etsy’s internal initiatives, particularly personalization, are contributing to GMS growth. Etsy’s Internal Initiatives Drive GMS Growth, Wedbush Says
• Positive Sentiment: Several analysts raised their price targets. Needham increased its target to $110 and Rosenblatt raised its target to $105, with both firms maintaining buy ratings. BTIG Research also forecast significant potential appreciation for Etsy shares. BTIG Research Forecasts Strong Price Appreciation for Etsy Stock
• Neutral Sentiment: Etsy is tightening its rules on AI-generated listings. The new CEO is attempting to protect Etsy’s handmade-focused identity by restricting AI-related seller content. The move could improve buyer trust and help shoppers return, but users are calling for an even broader ban, creating execution and seller-retention risks. Etsy’s new CEO cracks down on AI listings—and buyers start to return
• Negative Sentiment: Valuation concerns and cautious ratings are limiting upside. Morgan Stanley raised its target to $79 while retaining an equal-weight rating, and Wells Fargo raised its target to $80 but kept an underweight rating. Both targets remain below the stock’s recent trading level, suggesting some investors view the rally as ahead of near-term fundamentals.

About Etsy

Etsy, Inc operates an online marketplace that connects independent sellers with consumers seeking unique and creative goods. Its marketplace features products such as handmade items, personalized gifts, vintage merchandise, home décor, jewelry, clothing, craft supplies and other goods made, designed, selected or sourced by individual sellers and small businesses.

The company provides tools and services that support marketplace activity, including seller storefronts, search and discovery features, payment processing, advertising, shipping assistance and customer support.