Etsy (NASDAQ:ETSY) Announces Quarterly Earnings Results, Misses Estimates By $0.09 EPS

Etsy (NASDAQ:ETSY) posted its quarterly earnings results on Wednesday. The specialty retailer reported $0.45 earnings per share for the quarter, missing the consensus estimate of $0.54 by ($0.09), Briefing.com reports. The company had revenue of $662.40 million for the quarter, compared to analyst estimates of $652.47 million. Etsy had a negative return on equity of 51.94% and a net margin of 10.36%. The firm’s revenue for the quarter was up 4.1% compared to the same quarter last year. During the same period last year, the firm earned $0.64 EPS.

Etsy Trading Up 8.3 %

NASDAQ ETSY traded up $3.97 during trading on Thursday, hitting $51.96. 5,786,582 shares of the company’s stock were exchanged, compared to its average volume of 3,740,919. The stock’s 50 day moving average price is $52.70 and its two-hundred day moving average price is $58.30. Etsy has a fifty-two week low of $47.10 and a fifty-two week high of $89.58. The company has a market cap of $6.08 billion, a PE ratio of 24.88, a P/E/G ratio of 4.85 and a beta of 1.97.

Etsy declared that its board has initiated a share buyback 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 reacquire up to 17.8% of its stock through open market purchases. Stock repurchase plans are usually an indication that the company’s leadership believes its stock is undervalued.

Insider Activity at Etsy

In other Etsy news, CAO Merilee Buckley sold 1,676 shares of the firm’s stock in a transaction that occurred on Thursday, October 3rd. The shares were sold at an average price of $51.11, for a total value of $85,660.36. The sale was disclosed in a document filed with the SEC, which is available at this link. In related news, insider Nicholas Daniel sold 750 shares of Etsy stock in a transaction that occurred on Tuesday, September 3rd. The shares were sold at an average price of $55.40, for a total transaction of $41,550.00. Following the sale, the insider now directly owns 18,083 shares in the company, valued at $1,001,798.20. This trade represents a 0.00 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CAO Merilee Buckley sold 1,676 shares of the company’s stock in a transaction that occurred on Thursday, October 3rd. The shares were sold at an average price of $51.11, for a total transaction of $85,660.36. The disclosure for this sale can be found here. In the last three months, insiders have sold 4,619 shares of company stock valued at $240,825. 2.60% of the stock is owned by insiders.

Wall Street Analyst Weigh In

ETSY has been the topic of a number of recent analyst reports. Evercore ISI upgraded shares of Etsy to a “strong-buy” rating in a report on Thursday, August 1st. Needham & Company LLC reiterated a “buy” rating and issued a $60.00 target price on shares of Etsy in a research note on Thursday. Raymond James cut their price objective on Etsy from $72.00 to $65.00 and set an “outperform” rating for the company in a research report on Wednesday, October 23rd. The Goldman Sachs Group cut shares of Etsy from a “neutral” rating to a “sell” rating and cut their target price for the stock from $70.00 to $45.00 in a research note on Tuesday, October 15th. Finally, Stifel Nicolaus lowered their price target on shares of Etsy from $64.00 to $56.00 and set a “hold” rating on the stock in a report on Monday. Four investment analysts have rated the stock with a sell rating, twelve have assigned a hold rating, seven have given a buy rating and one has assigned a strong buy rating to the company. According to data from MarketBeat, the company presently has an average rating of “Hold” and a consensus price target of $66.48.

Etsy Company Profile

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.