Etsy (NYSE:ETSY) Trading Down 7.1% After Earnings Miss

Shares of Etsy Inc (NYSE:ETSY) were down 7.1% during mid-day trading on Thursday following a dissappointing earnings announcement. The company traded as low as $64.94 and last traded at $64.6770. Approximately 589,019 shares were traded during mid-day trading, a decline of 83% from the average daily volume of 3,471,031 shares. The stock had previously closed at $69.60.

The company reported $0.60 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.62 by ($0.02). The business had revenue of $631.28 million during the quarter, compared to analysts’ expectations of $622.39 million. Etsy had a negative return on equity of 24.94% and a net margin of 5.65%.The firm’s revenue was up 3.1% on a year-over-year basis. During the same period in the prior year, the company posted ($0.49) earnings per share.

Trending Headlines about Etsy

Here are the key news stories impacting Etsy this week:

• Positive Sentiment: Q1 revenue beat estimates and Etsy reported improving marketplace trends: revenue was roughly $631.2M and management cited returning GMS growth and higher buyer activity. Online marketplace Etsy beats revenue estimates on steady demand
• Positive Sentiment: Etsy posted its first buyer growth in two years and is highlighting AI-driven product discovery to attract shoppers — a structural improvement if sustained. Etsy posts first buyer growth in two years amid AI push
• Positive Sentiment: Analysts raised targets and reiterated buy ratings after the results — Needham lifted its target to $85 and BTIG to $78, signaling increased upside expectations from brokers. Needham raises Etsy price target to $85 BTIG raises Etsy price target to $78
• Neutral Sentiment: Earnings call characterized the recovery as “cautiously upbeat” — management sees improvement but signaled prudence on pacing investment and growth assumptions. Earnings call signals cautious recovery
• Negative Sentiment: Profitability remains a concern: GAAP EPS was roughly $0.60 (slightly below some consensus reports), net margin stayed low and return on equity was negative — metrics that limit upside until margins improve. Etsy issues earnings results (MarketBeat)

Wall Street Analysts Forecast Growth

Several equities research analysts recently issued reports on ETSY shares. Wells Fargo & Company reduced their price objective on Etsy from $52.00 to $47.00 and set an “underweight” rating for the company in a research note on Friday, February 20th. Morgan Stanley set a $64.00 price target on Etsy in a research note on Wednesday. Deutsche Bank Aktiengesellschaft raised their price target on Etsy from $74.00 to $75.00 and gave the stock a “hold” rating in a research note on Thursday. B. Riley Financial downgraded Etsy from a “buy” rating to a “neutral” rating and raised their price target for the stock from $70.00 to $75.00 in a research note on Thursday. Finally, Jefferies Financial Group cut their price target on Etsy from $62.00 to $55.00 and set a “hold” rating for the company in a research note on Thursday, February 12th. One analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, nineteen have assigned a Hold rating and three have given a Sell rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of “Hold” and an average price target of $66.67.

Insider Activity at Etsy

In related news, CAO Merilee Buckley sold 1,993 shares of the firm’s stock in a transaction that occurred on Monday, April 6th. The stock was sold at an average price of $52.92, for a total value of $105,469.56. Following the transaction, the chief accounting officer directly owned 809 shares of the company’s stock, valued at approximately $42,812.28. This trade represents a 71.13% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Charles Andrew Ballard sold 1,790 shares of the firm’s stock in a transaction that occurred on Wednesday, March 4th. The shares were sold at an average price of $55.74, for a total value of $99,774.60. Following the completion of the transaction, the director directly owned 4,006 shares in the company, valued at $223,294.44. The trade was a 30.88% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 168,636 shares of company stock valued at $10,253,703. Corporate insiders own 2.80% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the stock. Seelaus Asset Management LLC bought a new position in shares of Etsy in the 1st quarter valued at approximately $494,000. Lmcg Investments LLC grew its holdings in Etsy by 0.3% in the 1st quarter. Lmcg Investments LLC now owns 71,569 shares of the company’s stock valued at $3,577,000 after buying an additional 249 shares during the last quarter. Childress Capital Advisors LLC acquired a new stake in Etsy in the 1st quarter valued at approximately $221,000. HB Wealth Management LLC acquired a new stake in Etsy in the 1st quarter valued at approximately $231,000. Finally, Janney Montgomery Scott LLC grew its holdings in Etsy by 8.6% in the 1st quarter. Janney Montgomery Scott LLC now owns 6,359 shares of the company’s stock valued at $318,000 after buying an additional 504 shares during the last quarter. 99.53% of the stock is owned by institutional investors.

Etsy Stock Performance

The firm has a market capitalization of $6.08 billion, a PE ratio of 48.72, a price-to-earnings-growth ratio of 9.90 and a beta of 1.77. The business’s fifty day moving average is $55.16.

Etsy Company Profile

Etsy, Inc operates two-sided online marketplaces that connect buyers and sellers primarily in the United States, the United Kingdom, Germany, Canada, Australia, France, and India. 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. In addition, it offers various seller services, including Etsy Payments, a payment processing service; Etsy Ads, an advertising platform; and Shipping Labels, which allows sellers in the United States, Canada, the United Kingdom, Australia, and India to purchase discounted shipping labels.