Wedbush Research Analysts Lower Earnings Estimates for Etsy

Etsy, Inc. (NASDAQ:ETSY) – Analysts at Wedbush lowered their Q1 2025 EPS estimates for Etsy in a note issued to investors on Wednesday, February 19th. Wedbush analyst S. Devitt now anticipates that the specialty retailer will post earnings per share of $0.43 for the quarter, down from their prior estimate of $0.51. The consensus estimate for Etsy’s current full-year earnings is $2.60 per share. Wedbush also issued estimates for Etsy’s Q2 2025 earnings at $0.48 EPS, Q3 2025 earnings at $0.58 EPS, Q4 2025 earnings at $1.09 EPS, FY2025 earnings at $2.58 EPS and FY2026 earnings at $2.86 EPS.

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

A number of other brokerages have also issued reports on ETSY. UBS Group dropped their target price on shares of Etsy from $55.00 to $54.00 and set a “neutral” rating on the stock in a research report on Thursday. Canaccord Genuity Group dropped their price objective on shares of Etsy from $105.00 to $76.00 and set a “buy” rating on the stock in a report on Thursday. Truist Financial reduced their target price on shares of Etsy from $70.00 to $67.00 and set a “buy” rating for the company in a research note on Wednesday, January 29th. Moffett Nathanson boosted their price target on Etsy from $60.00 to $61.00 and gave the company a “neutral” rating in a research note on Tuesday, November 26th. Finally, Wells Fargo & Company upped their price target on Etsy from $44.00 to $47.00 and gave the company an “underweight” rating in a report on Thursday. 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 issued a strong buy rating to the stock. According to MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus target price of $60.08.

Etsy Stock Performance

Shares of NASDAQ:ETSY opened at $51.26 on Friday. The stock’s 50-day moving average is $54.43 and its 200-day moving average is $53.78. The company has a market cap of $5.77 billion, a P/E ratio of 21.63, a P/E/G ratio of 2.55 and a beta of 2.00. Etsy has a 52-week low of $47.10 and a 52-week high of $74.82.

Hedge Funds Weigh In On Etsy

Institutional investors have recently modified their holdings of the company. Vanguard Group Inc. increased its holdings in shares of Etsy by 0.5% in the fourth quarter. Vanguard Group Inc. now owns 12,309,622 shares of the specialty retailer’s stock worth $651,056,000 after buying an additional 56,772 shares during the period. Pacer Advisors Inc. increased its stake in Etsy by 183.9% in 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. Renaissance Technologies LLC lifted its position in Etsy by 4.5% in the fourth quarter. Renaissance Technologies LLC now owns 5,421,641 shares of the specialty retailer’s stock valued at $286,751,000 after purchasing an additional 235,550 shares during the last quarter. Van ECK Associates Corp boosted its stake in shares of Etsy by 17.4% during the fourth quarter. Van ECK Associates Corp now owns 3,527,742 shares of the specialty retailer’s stock valued at $186,583,000 after purchasing an additional 522,111 shares during the period. Finally, DAVENPORT & Co LLC boosted its stake in shares of Etsy by 12.1% during the fourth quarter. DAVENPORT & Co LLC now owns 1,748,008 shares of the specialty retailer’s stock valued at $92,452,000 after purchasing an additional 188,386 shares during the period. 99.53% of the stock is currently owned by institutional investors.

Insider Activity at Etsy

In other news, insider Nicholas Daniel sold 1,500 shares of the business’s stock in a transaction dated Monday, February 3rd. The stock was sold at an average price of $55.34, for a total transaction of $83,010.00. Following the completion of the transaction, the insider now owns 22,198 shares of the company’s stock, valued at approximately $1,228,437.32. The trade was a 6.33 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. 2.60% of the stock is owned by corporate insiders.

Etsy declared that its board has initiated a share repurchase plan on Wednesday, October 30th that permits the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization permits the specialty retailer to buy up to 17.8% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company’s management believes its shares are undervalued.

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.