Etsy (NASDAQ:ETSY) Shares Up 7.1% on Analyst Upgrade

Etsy, Inc. (NASDAQ:ETSY) shares rose 7.1% during mid-day trading on Friday after Truist Financial raised their price target on the stock from $80.00 to $83.00. Truist Financial currently has a buy rating on the stock. Etsy traded as high as $50.67 and last traded at $51.54. 1,133,939 shares were traded during trading, a decline of 71% from the average session volume of 3,911,097 shares. The stock had previously closed at $48.14.

Other research analysts also recently issued reports about the stock. B. Riley Financial reissued a “buy” rating on shares of Etsy in a research report on Thursday, October 30th. Morgan Stanley lowered their price target on Etsy from $65.00 to $60.00 and set an “equal weight” rating on the stock in a report on Friday. The Goldman Sachs Group boosted their price target on Etsy from $48.00 to $57.00 and gave the company a “sell” rating in a research report on Thursday, October 30th. Needham & Company LLC decreased their price objective on Etsy from $76.00 to $65.00 and set a “buy” rating for the company in a research report on Friday. Finally, Citigroup reiterated a “buy” rating on shares of Etsy in a research note on Tuesday, December 30th. One investment 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 assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, Etsy currently has an average rating of “Hold” and an average price target of $61.12.

Insiders Place Their Bets

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

Etsy News Summary

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

Institutional Investors Weigh In On Etsy

A number of large investors have recently added to or reduced their stakes in ETSY. Holocene Advisors LP raised its position in shares of Etsy by 697.4% during the 2nd quarter. Holocene Advisors LP now owns 5,343,797 shares of the specialty retailer’s stock worth $268,045,000 after purchasing an additional 4,673,615 shares during the last quarter. AQR Capital Management LLC increased its position in Etsy by 40.1% during the fourth quarter. AQR Capital Management LLC now owns 4,111,639 shares of the specialty retailer’s stock worth $227,785,000 after buying an additional 1,177,301 shares in the last quarter. Lone Pine Capital LLC acquired a new position in shares of Etsy in the third quarter worth $257,614,000. Van ECK Associates Corp raised its holdings in shares of Etsy by 1.1% in the fourth quarter. Van ECK Associates Corp now owns 3,734,156 shares of the specialty retailer’s stock worth $207,022,000 after acquiring an additional 39,067 shares during the last quarter. Finally, Arrowstreet Capital Limited Partnership lifted its position in shares of Etsy by 62.3% in the second quarter. Arrowstreet Capital Limited Partnership now owns 3,692,134 shares of the specialty retailer’s stock valued at $185,197,000 after acquiring an additional 1,416,772 shares in the last quarter. 99.53% of the stock is owned by institutional investors and hedge funds.

Etsy Stock Up 8.4%

The firm has a market cap of $5.15 billion, a price-to-earnings ratio of 42.10, a price-to-earnings-growth ratio of 10.65 and a beta of 1.77. The business has a 50 day moving average of $55.62 and a 200 day moving average of $59.45.

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

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.