Share Buyback Program Initiated by Etsy (NASDAQ:ETSY) Board

Etsy (NASDAQ:ETSY) declared that its Board of Directors has approved a share buyback plan on Wednesday, October 30th, RTT News reports. The company plans to buyback $1.00 billion in outstanding shares. This buyback authorization authorizes the specialty retailer to buy up to 17.8% of its shares through open market purchases. Shares buyback plans are often an indication that the company’s board believes its stock is undervalued.

Etsy Price Performance

ETSY opened at $47.99 on Thursday. The firm has a 50 day simple moving average of $52.70 and a 200 day simple moving average of $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 $5.61 billion, a price-to-earnings ratio of 21.91, a price-to-earnings-growth ratio of 4.85 and a beta of 1.97.

Etsy (NASDAQ:ETSY) last issued its earnings results on Wednesday, July 31st. The specialty retailer reported $0.41 EPS for the quarter, missing the consensus estimate of $0.46 by ($0.05). Etsy had a net margin of 10.36% and a negative return on equity of 51.94%. The business had revenue of $647.80 million for the quarter, compared to the consensus estimate of $629.87 million. During the same quarter in the previous year, the firm posted $0.83 EPS. The business’s revenue was up 3.0% on a year-over-year basis. As a group, analysts expect that Etsy will post 2.38 EPS for the current year.

Wall Street Analysts Forecast Growth

A number of research analysts recently issued reports on ETSY shares. Wolfe Research initiated coverage on shares of Etsy in a research note on Tuesday, July 16th. They issued a “peer perform” rating on the stock. The Goldman Sachs Group lowered Etsy from a “neutral” rating to a “sell” rating and lowered their target price for the company from $70.00 to $45.00 in a report on Tuesday, October 15th. Raymond James cut their price target on Etsy from $72.00 to $65.00 and set an “outperform” rating for the company in a report on Wednesday, October 23rd. Loop Capital dropped their target price on shares of Etsy from $50.00 to $45.00 and set a “sell” rating on the stock in a research report on Monday, August 12th. Finally, Piper Sandler reissued a “neutral” rating and issued a $56.00 price target on shares of Etsy in a report on Friday, August 23rd. Four analysts have rated the stock with a sell rating, twelve have assigned a hold rating, seven have issued a buy rating and one has assigned a strong buy rating to the company’s stock. According to data from MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus price target of $66.48.

Insider Activity at Etsy

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

About Etsy

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.