Etsy Target of Unusually Large Options Trading (NASDAQ:ETSY)

Etsy, Inc. (NASDAQ:ETSY) was the target of some unusual options trading activity on Wednesday. Investors acquired 31,826 call options on the stock. This is an increase of approximately 80% compared to the average volume of 17,650 call options.

Etsy Price Performance

ETSY stock opened at $59.06 on Thursday. The firm’s fifty day simple moving average is $52.10 and its 200-day simple moving average is $56.19. The company has a market capitalization of $6.64 billion, a P/E ratio of 30.31, a price-to-earnings-growth ratio of 6.55 and a beta of 1.99. Etsy has a 12 month low of $47.10 and a 12 month high of $89.58.

Etsy (NASDAQ:ETSY) last released its quarterly earnings data on Wednesday, October 30th. The specialty retailer reported $0.45 EPS for the quarter, missing the consensus estimate of $0.54 by ($0.09). The business had revenue of $662.40 million during the quarter, compared to analysts’ expectations of $652.47 million. Etsy had a net margin of 9.17% and a negative return on equity of 46.79%. The firm’s revenue was up 4.1% on a year-over-year basis. During the same period last year, the company earned $0.64 earnings per share. As a group, sell-side analysts forecast that Etsy will post 2.25 earnings per share for the current year.

Etsy announced that its board has approved a stock repurchase plan on Wednesday, October 30th that allows the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization allows the specialty retailer to purchase up to 17.8% of its shares through open market purchases. Shares repurchase plans are often a sign that the company’s board of directors believes its shares are undervalued.

Wall Street Analysts Forecast Growth

ETSY has been the topic of several recent analyst reports. Cantor Fitzgerald reaffirmed a “neutral” rating and issued a $50.00 price target on shares of Etsy in a research note on Monday, October 7th. The Goldman Sachs Group downgraded shares of Etsy from a “neutral” rating to a “sell” rating and reduced their price target for the stock from $70.00 to $45.00 in a research note on Tuesday, October 15th. Wedbush reduced their price target on shares of Etsy from $65.00 to $58.00 and set a “neutral” rating on the stock in a research note on Tuesday, October 22nd. UBS Group reduced their price target on shares of Etsy from $65.00 to $58.00 and set a “neutral” rating for the company in a report on Tuesday, October 15th. Finally, Raymond James reduced their price target on shares of Etsy from $72.00 to $65.00 and set an “outperform” rating for the company in a report on Wednesday, October 23rd. Four equities research analysts have rated the stock with a sell rating, thirteen have issued a hold rating, seven have given a buy rating and one has assigned a strong buy rating to the company’s stock. According to MarketBeat, the company currently has an average rating of “Hold” and a consensus price target of $64.71.

Insider Activity

In other news, insider Toni Thompson Nadal sold 1,443 shares of the stock in a transaction on Thursday, October 3rd. The shares were sold at an average price of $51.11, for a total value of $73,751.73. Following the sale, the insider now owns 592 shares of the company’s stock, valued at approximately $30,257.12. This represents a 70.91 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider Nicholas Daniel sold 750 shares of the stock in a transaction on Tuesday, October 1st. The shares were sold at an average price of $53.15, for a total transaction of $39,862.50. Following the completion of the sale, the insider now directly owns 25,121 shares in the company, valued at approximately $1,335,181.15. This represents a 2.90 % decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 5,069 shares of company stock valued at $261,888. 2.60% of the stock is currently owned by company insiders.

Institutional Trading of Etsy

Several large investors have recently made changes to their positions in the business. Blue Trust Inc. lifted its stake in shares of Etsy by 106.5% in the 3rd quarter. Blue Trust Inc. now owns 448 shares of the specialty retailer’s stock valued at $26,000 after purchasing an additional 231 shares during the period. Meridian Management Co. lifted its stake in shares of Etsy by 0.4% in the 2nd quarter. Meridian Management Co. now owns 63,409 shares of the specialty retailer’s stock valued at $3,740,000 after purchasing an additional 241 shares during the period. GAMMA Investing LLC lifted its stake in shares of Etsy by 25.6% in the 2nd quarter. GAMMA Investing LLC now owns 1,241 shares of the specialty retailer’s stock valued at $73,000 after purchasing an additional 253 shares during the period. UMB Bank n.a. lifted its stake in shares of Etsy by 112.3% in the 3rd quarter. UMB Bank n.a. now owns 552 shares of the specialty retailer’s stock valued at $31,000 after purchasing an additional 292 shares during the period. Finally, Nisa Investment Advisors LLC lifted its stake in shares of Etsy by 3.7% in the 2nd quarter. Nisa Investment Advisors LLC now owns 8,915 shares of the specialty retailer’s stock valued at $526,000 after purchasing an additional 316 shares during the period. 99.53% of the stock is owned by hedge funds and other institutional investors.

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.