Etsy (NASDAQ:ETSY) Shares Gap Up Following Better-Than-Expected Earnings

Shares of Etsy, Inc. (NASDAQ:ETSY) gapped up prior to trading on Thursday following a better than expected earnings announcement. The stock had previously closed at $44.05, but opened at $48.56. Etsy shares last traded at $48.0960, with a volume of 4,875,808 shares traded.

The specialty retailer reported $0.92 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.87 by $0.05. Etsy had a negative return on equity of 31.10% and a net margin of 5.78%.The firm’s quarterly revenue was up 3.5% compared to the same quarter last year. During the same quarter in the prior year, the business posted $1.03 EPS.

Etsy declared that its board has approved a share repurchase plan on Thursday, December 18th that allows the company to buyback $750.00 million in outstanding shares. This buyback authorization allows the specialty retailer to buy up to 14.2% of its shares through open market purchases. Shares buyback plans are often a sign that the company’s board believes its stock is undervalued.

Trending Headlines about Etsy

Here are the key news stories impacting Etsy this week:

• Positive Sentiment: Sale of Depop to eBay for $1.2 billion in cash — the deal immediately raises over $1B in non‑core proceeds, gives Etsy cash to invest in its core marketplace (or return capital), and was the primary catalyst for the rally. Forbes: Ebay Goes Long On Fashion Resale By Acquiring Depop From Etsy For $1.2 Billion
• Positive Sentiment: Quarterly beat on EPS: Etsy reported $0.92 vs. ~$0.87 expected and revenue grew ~3.5% YoY; management cited returning GMS growth and expects FY‑2026 improvement — supports a constructive near‑term view despite mixed underlying trends. Etsy Press Release: Q4 and Full Year 2025 Results
• Positive Sentiment: Strategic refocus: management is shifting capital and execution toward core marketplace growth initiatives (AI/agentic commerce and mobile engagement), which could accelerate buyer re‑engagement if execution succeeds. PYMNTS: Etsy Sells Depop, Pushes AI and Mobile to Restart Growth
• Neutral Sentiment: Technical drivers: elevated short interest in ETSY likely amplified the rally as positions covered after the Depop news, creating momentum beyond fundamentals. Benzinga: Highly‑Shorted Stock Etsy Skyrockets — Here’s Why
• Neutral Sentiment: Insider sale: a director sold 300 shares on Feb. 17 (small dollar amount relative to company market cap); more informational than directional. InsiderTrades: Marla J. Blow SEC Filing
• Negative Sentiment: Sale likely at a markdown vs. prior cost — some outlets note the Depop divestiture comes at a loss versus what Etsy paid, which could pressure reported results and investor perception of prior M&A execution. The Information: Etsy Sells Depop to eBay At A Loss
• Negative Sentiment: Mixed underlying results and margin/engagement pressure — Etsy posted lower profit despite revenue growth, cited demand pressures and margin/headwinds that investors will watch closely in upcoming guidance. WSJ: Etsy Posts Lower Profit Despite Higher Revenue

Wall Street Analysts Forecast Growth

Several equities analysts recently issued reports on the stock. B. Riley Financial reissued a “buy” rating on shares of Etsy in a report on Thursday, October 30th. Cantor Fitzgerald reduced their price target on Etsy from $64.00 to $55.00 and set a “neutral” rating for the company in a research report on Thursday, January 8th. Wedbush decreased their price objective on Etsy from $72.00 to $66.00 and set a “neutral” rating for the company in a research note on Friday, December 19th. Raymond James Financial reiterated an “outperform” rating and issued a $78.00 target price (down previously from $80.00) on shares of Etsy in a research note on Thursday, October 30th. Finally, Needham & Company LLC increased their price target on shares of Etsy from $72.00 to $76.00 and gave the company a “buy” rating in a research report on Thursday, October 30th. One analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating, eighteen have assigned a Hold rating and three have issued a Sell rating to the company’s stock. According to MarketBeat, the stock currently has an average rating of “Hold” and an average target price of $63.52.

Insiders Place Their Bets

In other Etsy news, CAO Merilee Buckley sold 5,636 shares of the firm’s stock in a transaction on Monday, January 5th. The stock was sold at an average price of $58.45, for a total value of $329,424.20. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Josh Silverman sold 86,666 shares of Etsy stock in a transaction on Friday, January 2nd. The shares were sold at an average price of $57.46, for a total value of $4,979,828.36. Following the completion of the sale, the insider owned 90,661 shares in the company, valued at $5,209,381.06. This represents a 48.87% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 135,934 shares of company stock worth $7,661,068 in the last three months. 2.80% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Etsy

Several large investors have recently bought and sold shares of the stock. Heritage Wealth Advisors raised its position in Etsy by 476.5% during the 2nd quarter. Heritage Wealth Advisors now owns 490 shares of the specialty retailer’s stock worth $25,000 after buying an additional 405 shares during the last quarter. EFG International AG purchased a new position in shares of Etsy in the 4th quarter valued at $33,000. Elevation Point Wealth Partners LLC purchased a new stake in shares of Etsy during the second quarter worth about $35,000. Employees Retirement System of Texas bought a new position in Etsy during the 2nd quarter valued at $47,000. Finally, SJS Investment Consulting Inc. lifted its stake in Etsy by 12,600.0% during the third quarter. SJS Investment Consulting Inc. now owns 762 shares of the specialty retailer’s stock worth $51,000 after purchasing an additional 756 shares during the last quarter. Hedge funds and other institutional investors own 99.53% of the company’s stock.

Etsy Stock Up 9.5%

The firm’s 50 day simple moving average is $55.66 and its 200 day simple moving average is $59.49. The company has a market cap of $4.76 billion, a price-to-earnings ratio of 38.91, a price-to-earnings-growth ratio of 10.65 and a beta of 1.77.

About Etsy

Etsy, Inc (NASDAQ: ETSY) operates a global e-commerce marketplace focused on handmade, vintage and unique goods. The platform connects individual artisans, small businesses and collectors with buyers seeking one-of-a-kind items, ranging from handcrafted jewelry and clothing to home décor and art supplies. Etsy’s revenue is primarily generated through listing fees, transaction fees on sales and optional seller services such as advertising and shipping labels.

Founded in 2005 and headquartered in Brooklyn, New York, Etsy has cultivated a community-driven ethos, encouraging sustainable practices and personal entrepreneurship.