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

Etsy (NASDAQ:ETSY) had its target price dropped by research analysts at Morgan Stanley from $65.00 to $60.00 in a report released on Friday, Marketbeat Ratings reports. The brokerage presently has an “equal weight” rating on the specialty retailer’s stock. Morgan Stanley’s price objective indicates a potential upside of 14.94% from the company’s current price.

Several other equities research analysts have also recently commented on the company. Raymond James Financial restated an “outperform” rating and set a $78.00 price target (down previously from $80.00) on shares of Etsy in a research note on Thursday, October 30th. B. Riley Financial reissued a “buy” rating on shares of Etsy in a research note on Thursday, October 30th. Wedbush reduced their target price on shares of Etsy from $72.00 to $66.00 and set a “neutral” rating for the company in a research note on Friday, December 19th. BNP Paribas Exane started coverage on shares of Etsy in a report on Monday, November 24th. They issued a “neutral” rating on the stock. Finally, Needham & Company LLC dropped their price target on shares of Etsy from $76.00 to $65.00 and set a “buy” rating on the stock in a research note on Friday. One analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating, eighteen have given a Hold rating and three have assigned a Sell rating to the company. According to MarketBeat.com, the company has a consensus rating of “Hold” and an average target price of $61.12.

Etsy Stock Up 8.4%

ETSY opened at $52.20 on Friday. Etsy has a 52 week low of $40.05 and a 52 week high of $76.51. The business has a 50 day moving average price of $55.62 and a two-hundred day moving average price of $59.48. The company has a market cap of $5.15 billion, a PE ratio of 42.10, a P/E/G ratio of 10.65 and a beta of 1.77.

Etsy announced that its Board of Directors has approved a stock repurchase program on Thursday, December 18th that authorizes the company to buyback $750.00 million in outstanding shares. This buyback authorization authorizes the specialty retailer to purchase up to 14.2% of its stock through open market purchases. Stock buyback programs are generally a sign that the company’s board believes its shares are undervalued.

Insiders Place Their Bets

In other Etsy news, insider Josh Silverman sold 86,666 shares of the company’s stock in a transaction dated Friday, January 2nd. The shares were sold at an average price of $57.46, for a total transaction of $4,979,828.36. Following the transaction, the insider directly owned 90,661 shares in the company, valued at approximately $5,209,381.06. This represents a 48.87% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, CAO Merilee Buckley sold 5,636 shares of the stock in a transaction dated Monday, January 5th. The shares were sold at an average price of $58.45, for a total transaction of $329,424.20. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 135,934 shares of company stock worth $7,661,068. Corporate insiders own 2.80% of the company’s stock.

Institutional Investors Weigh In On Etsy

A number of institutional investors and hedge funds have recently modified their holdings of the company. Compound Planning Inc. raised its holdings in Etsy by 16.6% during the fourth quarter. Compound Planning Inc. now owns 4,000 shares of the specialty retailer’s stock worth $222,000 after purchasing an additional 570 shares during the last quarter. Invesco Ltd. increased its position in shares of Etsy by 26.8% in the fourth quarter. Invesco Ltd. now owns 361,193 shares of the specialty retailer’s stock valued at $20,025,000 after buying an additional 76,379 shares in the last quarter. Rare Wolf Capital LLC acquired a new position in shares of Etsy during the 4th quarter worth $1,247,000. Corient Private Wealth LLC boosted its position in shares of Etsy by 33.7% in the 4th quarter. Corient Private Wealth LLC now owns 23,023 shares of the specialty retailer’s stock worth $1,276,000 after buying an additional 5,797 shares in the last quarter. Finally, Mercer Global Advisors Inc. ADV grew its stake in Etsy by 64.6% in the 4th quarter. Mercer Global Advisors Inc. ADV now owns 39,736 shares of the specialty retailer’s stock valued at $2,203,000 after acquiring an additional 15,596 shares during the last quarter. Institutional investors and hedge funds own 99.53% of the company’s stock.

Key Stories Impacting Etsy

Here are the key news stories impacting Etsy this week:

• Positive Sentiment: Sale of Depop to eBay for $1.2 billion in cash — provides >$1B of immediate liquidity, lets Etsy refocus on its core marketplace and was the main fundamental catalyst for the move higher. TechCrunch: Etsy sells Depop to eBay
• Positive Sentiment: Q4 beat on EPS and return to slight year-over-year GMS growth — Etsy topped EPS estimates and showed early stabilization in buyer engagement, helping investors look past near-term margin pressure. PR Newswire: Etsy Q4 and FY2025 results
• Positive Sentiment: Selected bullish analyst moves (Truist raise to $83, Needham buy maintained) give headline upside narratives that supported momentum for some buyers. Benzinga: analyst coverage
• Positive Sentiment: Wider market catalyst — a Supreme Court ruling that lifted e‑commerce names provided an additional short‑term bid to Etsy along with peers. CNBC: e‑commerce stocks pop after Supreme Court ruling
• Neutral Sentiment: Technical factors — elevated short interest amplified the rally (short squeeze component), so part of the move appears driven by positioning rather than new fundamentals. Benzinga: short interest note
• Neutral Sentiment: UBS and other cautious notes: some analysts view the Depop divestiture as improving profitability but still flag modest GMS growth and a valuation reset — a watch‑and‑wait stance. TipRanks: UBS commentary
• Negative Sentiment: Multiple analyst price‑target cuts and downgrades (JPMorgan, Wells Fargo, Morgan Stanley, Stifel, Cantor Fitzgerald and others) signal medium‑term caution on growth and valuation — these offsets could cap upside without clearer margin/GMS improvement. MarketScreener: analyst cuts
• Negative Sentiment: Mixed fundamentals and margin pressure — revenue roughly inline but profit and operating metrics showed strain, supporting views that a valuation reset may be underway. WSJ: profit vs revenue note
• Negative Sentiment: Insider sale disclosed (director sold 300 shares) — small in dollar terms but sometimes noted by traders as a modest negative signal. SEC Form 4: director sale

Etsy Company Profile

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.