Etsy (NASDAQ:ETSY) Shares Gap Up – Should You Buy?

Etsy, Inc. (NASDAQ:ETSY) gapped up prior to trading on Monday . The stock had previously closed at $54.91, but opened at $57.00. Etsy shares last traded at $56.65, with a volume of 1,065,516 shares trading hands.

Analyst Upgrades and Downgrades

Several equities analysts recently issued reports on ETSY shares. Cantor Fitzgerald reiterated a “neutral” rating and set a $50.00 target price on shares of Etsy in a research report on Monday, October 7th. Morgan Stanley lowered their price objective on shares of Etsy from $47.00 to $45.00 and set an “underweight” rating on the stock in a research note on Monday, January 13th. Stifel Nicolaus dropped their target price on shares of Etsy from $64.00 to $56.00 and set a “hold” rating for the company in a report on Monday, October 28th. 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 report on Tuesday, October 22nd. Finally, Barclays cut their price objective on Etsy from $60.00 to $55.00 and set an “equal weight” rating for the company in a research report on Thursday, October 31st. Four research analysts have rated the stock with a sell rating, fourteen have assigned a hold rating, seven have assigned a buy rating and one has assigned a strong buy rating to the company’s stock. According to MarketBeat, the company presently has a consensus rating of “Hold” and an average target price of $62.42.

Etsy Trading Up 0.4 %

The company’s 50 day moving average price is $55.21 and its 200-day moving average price is $54.44. The company has a market capitalization of $6.20 billion, a PE ratio of 28.18, a PEG ratio of 2.69 and a beta of 2.00.

Etsy announced that its Board of Directors has initiated a stock buyback plan on Wednesday, October 30th that authorizes the company to buyback $1.00 billion in shares. This buyback authorization authorizes the specialty retailer to purchase up to 17.8% of its shares through open market purchases. Shares buyback plans are often a sign that the company’s leadership believes its shares are undervalued.

Institutional Trading of Etsy

Several institutional investors have recently made changes to their positions in the stock. Prakash Investment Advisors LLC purchased a new stake in Etsy during the 4th quarter worth $561,000. ING Groep NV purchased a new stake in Etsy during the 4th quarter worth $13,236,000. Handelsbanken Fonder AB boosted its position in Etsy by 22.0% during the 4th quarter. Handelsbanken Fonder AB now owns 34,699 shares of the specialty retailer’s stock worth $1,835,000 after purchasing an additional 6,260 shares during the period. Ieq Capital LLC boosted its position in Etsy by 305.2% during the 4th quarter. Ieq Capital LLC now owns 78,612 shares of the specialty retailer’s stock worth $4,158,000 after purchasing an additional 59,211 shares during the period. Finally, Kestra Investment Management LLC purchased a new stake in Etsy during the 4th quarter worth $38,000. 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.