Etsy Inc. (NASDAQ: ETSY) stock jumped 3.89% on Friday to $108.50 against a previous-day closing price of $104.44. With 3.39 million shares changed hands, the volume of the stock remained lighter than its average volume of 5.09 million shares. During the session, the Internet Retail company that operates in wider Consumer Cyclical sector, reached to the highest price of $109.73 whereas the lowest price it dropped to was $104.58. The 52-week range on ETSY shows that it touched its highest point at $307.75 and its lowest point at $67.01 during that stretch. It currently has a 1-year price target of $117.52. Beta for the stock currently stands at 1.87.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of ETSY was up-trending over the past week, with a rise of 13.61%, but this was up by 22.96% over a month. Three-month performance surged to 7.93% while six-month performance fell -28.69%. The stock lost -43.03% in the past year, while it has lost -50.44% so far this year. A look at the trailing 12-month EPS for ETSY yields 2.79 with Next year EPS estimates of 2.70. For the next quarter, that number is 0.36. This implies an EPS growth rate of 23.60% for this year and 24.14% for next year. EPS is expected to grow by 41.95% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 71.40%.
Float and Shares Shorts:
At present, 127.09 million ETSY shares are outstanding with a float of 126.55 million shares on hand for trading. On Jul 14, 2022, short shares totaled 16.11 million, which was 12.67% higher than short shares on Jun 14, 2022. In addition to Mr. Joshua G. Silverman as the firm’s CEO, Pres & Director, Ms. Rachel C. Glaser serves as its Chief Financial Officer.
Through their ownership of 99.26% of ETSY’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 57.55% of ETSY, in contrast to 39.89% held by mutual funds. Shares owned by individuals account for 12.77%. As the largest shareholder in ETSY with 10.38% of the stake, The Vanguard Group, Inc. holds 13,191,639 shares worth 13,191,639. A second-largest stockholder of ETSY, Wellington Management Co. LLP, holds 7,638,684 shares, controlling over 6.01% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in ETSY, holding 7,138,192 shares or 5.62% stake. With a 2.95% stake in ETSY, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 3,751,050 shares are owned by the mutual fund manager. The Vanguard Mid Cap Index Fund, which owns about 2.30% of ETSY stock, is the second-largest Mutual Fund holder. It holds 2,926,557 shares valued at 214.25 million. Vanguard 500 Index Fund holds 2.21% of the stake in ETSY, owning 2,814,721 shares worth 206.07 million.
An Overview of Recent Financials:
Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jun 29, 2022, ETSY reported revenue of $585.13M and operating income of $72.56M. Over the past year, revenue came in at $2.41B while operating income stood at $382.87M. It generated $73.12M net income for the quarter, which came to $410.72M over the last twelve months. The EBITDA in the recently reported quarter was $97.59M and diluted EPS was $0.51. EBITDA for the full year was $482.99M.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for ETSY since 24 analysts follow the stock currently. There are 11 analysts who recommend BUY ratings, while 1 suggest SELL ratings. Of the remaining analysts, 9 believe that the stock is worth HOLDING, 3 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With ETSY analysts setting a high price target of $186.00 and a low target of $51.00, the average target price over the next 12 months is $116.03. Based on these targets, ETSY could surge 71.43% to reach the target high and fall by -53.0% to reach the target low. Reaching the average price target will result in a growth of 6.94% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. ETSY will report FY 2022 earnings on 02/28/2023. Analysts have provided yearly estimates in a range of $2.57 being high and $1.80 being low. For ETSY, this leads to a yearly average estimate of $2.12. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Etsy Inc. surprised analysts by $0.19 when it reported $0.51 EPS against a consensus estimate of $0.32. The surprise factor in the prior quarter was $0.03. Based on analyst estimates, the high estimate for the next quarter is $0.46 and the low estimate is $0.24. The average estimate for the next quarter is thus $0.37.
Summary of Insider Activity:
Insiders traded ETSY stock several times over the past three months with 13 Buys and 24 Sells. In these transactions, 92,133 shares were bought while 84,629 shares were sold. The number of buy transactions has increased to 87 while that of sell transactions has risen to 318 over the past year. The total number of shares bought during that period was 940,419 while 822,117 shares were sold.