Morgan Stanley Issues Pessimistic Forecast for Etsy (NASDAQ:ETSY) Stock Price

Etsy (NASDAQ:ETSY) had its price target lowered by analysts at Morgan Stanley from $45.00 to $44.00 in a report issued on Thursday,Benzinga reports. The brokerage presently has an “underweight” rating on the specialty retailer’s stock. Morgan Stanley’s price objective would indicate a potential downside of 13.76% from the company’s previous close.

Several other research firms have also weighed in on ETSY. Bank of America dropped their price objective on shares of Etsy from $61.00 to $58.00 and set a “neutral” rating on the stock in a research note on Thursday, October 24th. Raymond James dropped their price target on Etsy from $72.00 to $65.00 and set an “outperform” rating on the stock in a research report on Wednesday, October 23rd. Needham & Company LLC restated a “buy” rating and set a $60.00 price objective on shares of Etsy in a research note on Thursday. Stifel Nicolaus cut 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. Finally, Deutsche Bank Aktiengesellschaft lowered shares of Etsy to a “hold” rating and lowered their price target for the stock from $45.00 to $43.00 in a research report on Wednesday, February 12th. Four investment analysts have rated the stock with a sell rating, fourteen have given a hold rating, seven have assigned a buy rating and one has given a strong buy rating to the company. According to MarketBeat, Etsy currently has an average rating of “Hold” and an average price target of $60.63.

Etsy Trading Down 1.0 %

NASDAQ ETSY traded down $0.51 during mid-day trading on Thursday, reaching $51.02. 1,760,294 shares of the company’s stock traded hands, compared to its average volume of 3,209,437. Etsy has a 1-year low of $47.10 and a 1-year high of $78.65. The company has a market cap of $5.74 billion, a price-to-earnings ratio of 26.07, a P/E/G ratio of 2.83 and a beta of 2.00. The company has a fifty day simple moving average of $54.73 and a 200-day simple moving average of $53.83.

Etsy (NASDAQ:ETSY) last posted its quarterly earnings results on Wednesday, February 19th. The specialty retailer reported $1.03 EPS for the quarter, topping analysts’ consensus estimates of $0.95 by $0.08. Etsy had a negative return on equity of 46.79% and a net margin of 9.17%. The business had revenue of $852.16 million during the quarter, compared to the consensus estimate of $861.37 million. During the same period last year, the firm earned $0.62 earnings per share. The company’s revenue for the quarter was up 1.2% compared to the same quarter last year. Equities research analysts forecast that Etsy will post 2.25 earnings per share for the current fiscal year.

Etsy announced that its Board of Directors has authorized a share buyback plan on Wednesday, October 30th that allows the company to repurchase $1.00 billion in shares. This repurchase authorization allows the specialty retailer to repurchase up to 17.8% of its shares through open market purchases. Shares repurchase plans are generally a sign that the company’s management believes its shares are undervalued.

Insider Activity

In related news, insider Nicholas Daniel sold 1,500 shares of the business’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 value of $83,010.00. Following the sale, the insider now directly owns 22,198 shares in the company, valued at $1,228,437.32. The trade was a 6.33 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Insiders own 2.60% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in ETSY. Pacer Advisors Inc. lifted its position 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 valued at $331,067,000 after acquiring an additional 3,861,668 shares during the last quarter. Norges Bank acquired a new stake in shares of Etsy during the fourth quarter worth $74,235,000. Healthcare of Ontario Pension Plan Trust Fund purchased a new stake in shares of Etsy during the third quarter valued at $55,530,000. Holocene Advisors LP acquired a new position in shares of Etsy in the 3rd quarter valued at $49,061,000. Finally, Assenagon Asset Management S.A. increased its stake in Etsy by 132.9% in the 4th quarter. Assenagon Asset Management S.A. now owns 1,490,399 shares of the specialty retailer’s stock worth $78,827,000 after purchasing an additional 850,520 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.