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BROOKLYN, NY — Etsy Inc . (NASDAQ:ETSY), the $5.2 billion e-commerce marketplace currently trading at $48.45, has seen a notable transaction by its Chief Human Resources Officer, Nadal Toni Thompson, according to a recently filed SEC Form 4. On April 3, Thompson sold a total of 1,444 shares of Etsy common stock at prices ranging between $48.08 and $49.59, amounting to a total transaction value of approximately $69,744. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value calculations.
Earlier, on April 1, Thompson acquired 3,321 shares through the vesting of restricted stock units, which were reported at a price of $0 per share. Additionally, 817 shares were withheld to satisfy tax obligations, valued at $48.53 per share, totaling $39,649. The company maintains impressive gross profit margins of 72.4% and shows strong financial health metrics, as detailed in the comprehensive InvestingPro Research Report.
These transactions were executed as part of a pre-established 10b5-1 trading plan, which Thompson had adopted on March 11, 2024. Following these transactions, Thompson holds 592 shares of Etsy common stock directly. With the company’s next earnings report due on April 30, investors can access 10+ additional exclusive InvestingPro Tips and detailed financial metrics through InvestingPro.
In other recent news, Etsy has announced the appointment of Rafe Colburn as its new Chief Technology Officer, effective May 5, 2025. Colburn, who previously served as Chief Technology & Product Officer at Depop, will return to Etsy to lead its technical strategy and enhance buyer-seller connections. On the financial front, Etsy’s fourth-quarter Gross Merchandise Sales (GMS) fell short of expectations by approximately 3%, though its earnings before interest, taxes, depreciation, and amortization (EBITDA) exceeded estimates by 2%, according to Cantor Fitzgerald. Despite the shortfall, Guggenheim noted improvements in Etsy’s take rate and cost of revenue leverage, leading to a 3-4% adjusted EBITDA beat.
Several analysts have adjusted their price targets for Etsy. Cantor Fitzgerald reduced its target from $46.00 to $43.00, maintaining a Neutral rating, while Loop Capital reiterated a Sell rating with a $40.00 target. Guggenheim, despite lowering its price target from $80.00 to $70.00, maintained a Buy rating, citing potential for performance improvement through strategic investments. JPMorgan also reaffirmed a Neutral rating with a $50.00 price target, highlighting the potential impact of tariffs on Etsy’s GMS and advertising revenue.
These developments reflect a cautious outlook from analysts regarding Etsy’s market performance, with concerns about declining GMS and uncertainties in revenue streams. However, analysts like Guggenheim’s Steven Forbes see potential for improvement through Etsy’s initiatives in user engagement and marketing expansion. As Etsy navigates these challenges, the company remains focused on leveraging technology and enhancing the shopping experience for its users.
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