Investors Purchase Large Volume of Put Options on Etsy (NASDAQ:ETSY)

Etsy, Inc. (NASDAQ:ETSY) was the target of unusually large options trading on Tuesday. Investors purchased 26,061 put options on the stock. This represents an increase of approximately 13% compared to the typical daily volume of 23,024 put options.

Analysts Set New Price Targets

ETSY has been the topic of a number of recent research reports. Moffett Nathanson reaffirmed a “neutral” rating on shares of Etsy in a research note on Wednesday, October 29th. Bank of America raised their price target on shares of Etsy from $71.00 to $75.00 and gave the company a “neutral” rating in a research report on Friday, October 10th. Deutsche Bank Aktiengesellschaft reiterated a “hold” rating and set a $72.00 price target on shares of Etsy in a research note on Thursday, October 23rd. Jefferies Financial Group lowered their price objective on Etsy from $70.00 to $60.00 and set a “hold” rating for the company in a research note on Thursday, December 11th. Finally, Wells Fargo & Company dropped their target price on Etsy from $58.00 to $52.00 and set an “underweight” rating on the stock in a report on Thursday, October 30th. One research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating, nineteen have issued a Hold rating and three have given a Sell rating to the company’s stock. According to MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus price target of $64.24.

Etsy Stock Up 0.6%

Etsy stock opened at $61.77 on Thursday. Etsy has a 52 week low of $40.05 and a 52 week high of $76.51. The company’s 50 day moving average price is $56.11 and its two-hundred day moving average price is $59.78. The stock has a market cap of $6.10 billion, a P/E ratio of 49.82, a P/E/G ratio of 10.65 and a beta of 1.74.

Etsy (NASDAQ:ETSY) last released its earnings results on Wednesday, October 29th. The specialty retailer reported $0.63 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.57 by $0.06. The company had revenue of $678.03 million during the quarter, compared to analyst estimates of $655.83 million. Etsy had a negative return on equity of 31.10% and a net margin of 5.78%.Etsy’s quarterly revenue was up 2.4% on a year-over-year basis. During the same period in the prior year, the company posted $0.45 earnings per share. On average, equities analysts anticipate that Etsy will post 2.57 EPS for the current year.

Etsy announced that its board has approved a share buyback program on Thursday, December 18th that allows the company to buyback $750.00 million in outstanding shares. This buyback authorization allows 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 of directors believes its stock is undervalued.

Insider Transactions at Etsy

In other news, insider Josh Silverman sold 86,666 shares of the business’s stock in a transaction that occurred on Friday, January 2nd. The stock was sold at an average price of $57.46, for a total transaction 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. The trade was a 48.87% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CAO Merilee Buckley sold 5,636 shares of the company’s stock in a transaction that occurred on Monday, January 5th. The stock was sold at an average price of $58.45, for a total value of $329,424.20. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 154,056 shares of company stock worth $8,931,918. 2.80% of the stock is currently owned by insiders.

Institutional Trading of Etsy

A number of large investors have recently added to or reduced their stakes in the stock. Heritage Wealth Advisors boosted its stake in Etsy by 476.5% in the second quarter. Heritage Wealth Advisors now owns 490 shares of the specialty retailer’s stock valued at $25,000 after acquiring an additional 405 shares during the last quarter. Signaturefd LLC grew its holdings in Etsy by 52.7% during the second quarter. Signaturefd LLC now owns 556 shares of the specialty retailer’s stock valued at $28,000 after purchasing an additional 192 shares during the period. Elevation Point Wealth Partners LLC purchased a new stake in Etsy in the second quarter worth $35,000. Employees Retirement System of Texas purchased a new stake in Etsy in the second quarter worth $47,000. Finally, SJS Investment Consulting Inc. raised its stake in shares of Etsy by 12,600.0% in the third quarter. SJS Investment Consulting Inc. now owns 762 shares of the specialty retailer’s stock valued at $51,000 after buying an additional 756 shares during the period. Hedge funds and other institutional investors own 99.53% of the company’s stock.

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.