Look For Institutional Buying In Etsy Inc (NASDAQ: ETSY)

Capital Research & Management Co has recently announced that it has increased stake in Etsy Inc (NASDAQ:ETSY) by 1.35%. After grabbing 8.13 million shares, the institutional investor is now in possession of 0.11 million shares of the Consumer Cyclical Company. The new investment brought the stake of investor firm to 6.79% having worth around $616.33 million. Moreover, Bares Capital Management, Inc. increased its share by 1.48 million to have a control over 4.04 million shares. And Van Eck Associates Corp. raised its holdings to 1.05 million shares by acquiring 3.65 million shares or 3.05% of the stake.

Etsy Inc (ETSY) concluded trading on 01/10/24 at a closing price of $74.72, with 3.43 million shares of worth about $255.97 million changed hands on the day. Half year performance of the stock remained negative as price took a plunge of -18.34% during that period and on Wednesday the price saw a loss of about -2.72%. Currently the company’s common shares owned by public are about 125.05M shares, out of which, 118.72M shares are available for trading.

A deeper look into what the analysts at Wall Street are thinking about the price target of this stock provides us with the following: 33 analysts are covering the ETSY stock and their offered price forecasts bring an average price target of $81.41. Over the next 12 months, analysts forecasted that the stock’s price could jump as high as $125.00 and could fall to a lowest price of $47.00. The stock’s current price level is 8.22% above of average price target set by the analysts, while a rise to estimated low would result in loss of -58.98% for the stock. However, touching the estimated high of $125.00 would mean a gain of 40.22% for the stock.

According to filings with the U.S. Securities and Exchange Commission (SEC), insiders took part in trade of the company’s stock for 180 times over the past 12 months. They bought 545,141 shares in 55 of the transactions. In 125 selling transactions, insiders dumped 455,605 shares.

Vanguard Total Stock Market ETF, VanEck Morningstar Wide Moat ETF, and American Funds Growth Fund of Ame are the top 3 mutual funds which are holding stakes in Etsy Inc Vanguard Total Stock Market ETF is currently holding 3.85 million shares of worth totaling $291.58 million. The company recently came buying 4896.0 shares which brought its stake up to 3.21% of the company’s outstanding shares. VanEck Morningstar Wide Moat ETF bought 7308.0 shares, after which its hold over company’s outstanding shares expand to 3.08%, leaving 3.68 million shares with the mutual fund that have a worth of about $279.23 million. American Funds Growth Fund of Ame, after selling 3.28 million shares, have now control over 2.74% of the stake in the company. It holds -0.28 million shares of worth $248.6 million.

Etsy Inc (NASDAQ: ETSY) started trading at $75.47, below -$1.34 from concluding price of the previous day. However, the stock later moved at a day high price of 76.09, or with a loss of -2.72%. Stock saw a price change of -5.57% in past 5 days and over the past one month there was a price change of -6.69%. Year-to-date (YTD), ETSY shares are showing a performance of -7.81% which decreased to -38.24% when we look at its performance for past 12 months. Over the period of past 52 weeks, stock dropped to lowest price of $58.20 but also hit the highest price of $149.91 during that period. The average intraday trading volume for Etsy Inc shares is 4.27 million. The stock is currently trading -8.79% below its 20-day simple moving average (SMA20), while that difference is down -0.34% for SMA50 and it goes to -9.06% lower than SMA200.

Capital Research & Management Co acquired 8.13 million shares of Etsy Inc having value of about $616.33 million. Data submitted at the U.S SEC by Capital Research & Management Co revealed that the firm now holds 0.11 million shares in the company valued at close to $8085077.6, or have control over 1.35% stake in the company. Etsy Inc (NASDAQ: ETSY) currently have 125.05M outstanding shares and institutions hold larger chunk of about 94.19% of that. Holding of mutual funds in the company is about 41.49% while other institutional holders and individual stake holders have control over 53.85% and 13.66% of the stake respectively.

The stock has a current market capitalization of $8.95B and its 3Y-monthly beta is at 2.07. PE ratio of stock for trailing 12 months is 31.29, while it has posted earnings per share of $2.39 in the same period. Its PEG reads 1.96 and has Quick Ratio of 2.45. Volatility of a stock is a metric used to know how much the price of that stock is under influence and for ETSY, volatility over the week remained 2.89% while standing at 4.22% over the month.

Analysts are in expectations that Etsy Inc (ETSY) stock would likely to be making an EPS of $0.78 in the current quarter, while forecast for next quarter EPS is $0.56 and it is $2.68 for next year. For the current quarter EPS, analysts have given the company a lowest target $0.37 which is $0.9 at the higher side of the target for the same. When we compare those targets with actual EPS, we find that company posted an EPS of $0.77 in the same quarter a year ago. Stock’s fiscal year EPS is expected to rise by 143.09% while it is estimated to increase by 12.63% in next year.

Analysts at 33 brokerage firms have issued recommendations for the Etsy Inc (ETSY)’s stock and average of those rates the stock at a “Moderate Buy” and assign it a score of 2.36. Out of those 33 Wall Street analysts, 13 recommended a “Buy” rating, while 16 were in favor recommending the stock as a “Hold” and 3 analyst recommended the stock as “Sell”.

Digging deeper we find that several firms have released their research notes about the support levels of the stock. Most recent of them is a note released by Goldman on Jan-11-24 offering a Neutral rating for the stock and assigned a target price range of between $84 and $80 to it.