Is Etsy Stock a Good Investment?
Etsy Investment Advice | ETSY |
- Examine Etsy's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Etsy's leadership team and their track record. Good management can help Etsy navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Broadline Retail space and any emerging trends that could impact Etsy's business and its evolving consumer preferences.
- Compare Etsy's performance and market position to its competitors. Analyze how Etsy is positioned in terms of product offerings, innovation, and market share.
- Check if Etsy pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Etsy's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Etsy Inc stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Etsy Inc is a good investment.
Sell | Buy |
Hold
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Below Average | Details | |
Economic Sensitivity | Follows the market closely | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Etsy Stock
Researching Etsy's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 99.0% of the company shares are held by institutions such as insurance companies. The company has Price/Earnings To Growth (PEG) ratio of 1.2. Etsy Inc had not issued any dividends in recent years.
To determine if Etsy is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Etsy's research are outlined below:
| Etsy Inc generated a negative expected return over the last 90 days | |
| Over 99.0% of the company shares are held by institutions such as insurance companies | |
| Latest headline from gurufocus.com: Etsy Inc Trading 3.15 percent Higher on Nov 11 |
Etsy Quarterly Good Will |
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Etsy uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Etsy Inc. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Etsy's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 28th of February 2024 Upcoming Quarterly Report | View | |
| 1st of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 28th of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact Etsy's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Etsy's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2018-08-06 | 2018-06-30 | 0.04 | 0.03 | -0.01 | 25 | ||
2015-08-04 | 2015-06-30 | -0.08 | -0.07 | 0.01 | 12 | ||
2019-08-01 | 2019-06-30 | 0.13 | 0.15 | 0.02 | 15 | ||
2017-05-02 | 2017-03-31 | 0.01 | 0.0386 | 0.0286 | 286 | ||
2016-05-03 | 2016-03-31 | -0.02 | 0.01 | 0.03 | 150 | ||
2016-02-23 | 2015-12-31 | -0.01 | -0.04 | -0.03 | 300 | ||
2015-11-03 | 2015-09-30 | -0.06 | -0.03 | 0.03 | 50 | ||
2018-05-08 | 2018-03-31 | 0.06 | 0.1 | 0.04 | 66 |
Etsy Target Price Consensus
Etsy target price is determined by taking all analyst projections and averaging them out. There is no one specific way to measure analysts' performance other than comparing it to past results via a very sophisticated attribution analysis. Etsy's target price projections below should be used in combination with other traditional price prediction techniques such as stock price forecasting, investor sentiment analysis, technical analysis, earnings estimate, and various momentum models.
| 32 | Buy |
Most Etsy analysts issue ratings four times a year, at intervals of three months. Ratings are usually accompanied by a target price to help potential investors understand Etsy stock's fair price compared to its market value. Analysts arrive at stock ratings after researching the public financial statements of Etsy Inc, talking to its executives and customers, or listening to those companies' conference calls.
Macroaxis Advice Exposure ValuationEtsy Target Price Projection
Etsy's current and average target prices are 49.63 and 98.21, respectively. The current price of Etsy is the price at which Etsy Inc is currently trading. On the other hand, Etsy's target price is what analysts think the stock is worth or could sell for in the future. The more significant the discrepancy between the two prices, the more it stimulates investors to act.Target Price
Analyst Consensus On Etsy Target Price
Etsy Analyst Ratings
Etsy's analyst stock recommendations are determined by taking an average estimate of all analysts we track and classifying them as Strong Buy, Buy, Hold, Strong Sell, or Sell. Ratings generally communicate what analysts sense about Etsy stock, and they use a lot of effort and time to analyze it and arrive at a rating. That suggests that analyst recommendations are the outcome of an objective and thorough examination of Etsy's financials, market performance, and future outlook by experienced professionals. Etsy's historical ratings below, therefore, can serve as a valuable tool for investors.Know Etsy's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Etsy is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Etsy Inc backward and forwards among themselves. Etsy's institutional investor refers to the entity that pools money to purchase Etsy's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Morgan Stanley - Brokerage Accounts | 2024-06-30 | 2.7 M | Harris Associates L.p. | 2024-06-30 | 2.5 M | Pacer Advisors, Inc. | 2024-06-30 | 2.1 M | Fmr Inc | 2024-06-30 | 2.1 M | Nomura Holdings Inc | 2024-06-30 | 2 M | Clearbridge Advisors, Llc | 2024-06-30 | 1.9 M | Davenport & Company Llc | 2024-09-30 | 1.6 M | Bank Of New York Mellon Corp | 2024-06-30 | 1.4 M | Marshall Wace Asset Management Ltd | 2024-06-30 | 1.4 M | Vanguard Group Inc | 2024-06-30 | 13.4 M | Blackrock Inc | 2024-06-30 | 10.1 M |
Etsy's market capitalization trends
The company currently falls under 'Mid-Cap' category with a current market capitalization of 5.58 B.Market Cap |
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Etsy's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.15 | 0.15 | |
| Return On Capital Employed | 0.14 | 0.15 | |
| Return On Assets | 0.11 | 0.12 | |
| Return On Equity | (0.57) | (0.54) |
Determining Etsy's profitability involves analyzing its financial statements and using various financial metrics to determine if Etsy is a good buy. For example, gross profit margin measures Etsy's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Etsy's profitability and make more informed investment decisions.
Etsy's Earnings Breakdown by Geography
Please note, the imprecision that can be found in Etsy's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of Etsy Inc. Check Etsy's Beneish M Score to see the likelihood of Etsy's management manipulating its earnings.
Evaluate Etsy's management efficiency
Etsy Inc has return on total asset (ROA) of 0.0941 % which means that it generated a profit of $0.0941 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of (12.245) %, meaning that it created substantial loss on money invested by shareholders. Etsy's management efficiency ratios could be used to measure how well Etsy manages its routine affairs as well as how well it operates its assets and liabilities. At this time, Etsy's Return On Tangible Assets are fairly stable compared to the past year. Return On Capital Employed is likely to rise to 0.15 in 2024, despite the fact that Return On Equity is likely to grow to (0.54). At this time, Etsy's Other Assets are fairly stable compared to the past year. Intangible Assets is likely to rise to about 480 M in 2024, whereas Total Assets are likely to drop slightly above 1.6 B in 2024.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | (4.44) | (4.22) | |
| Tangible Book Value Per Share | (9.30) | (8.83) | |
| Enterprise Value Over EBITDA | 28.64 | 27.21 | |
| Price Book Value Ratio | (18.26) | (17.35) | |
| Enterprise Value Multiple | 28.64 | 27.21 | |
| Price Fair Value | (18.26) | (17.35) | |
| Enterprise Value | 11.4 B | 8.4 B |
Leadership at Etsy emphasizes sustainable growth and financial prudence. Our analysis evaluates how these priorities impact the stock's performance in the market.
Beta 1.992 |
Basic technical analysis of Etsy Stock
As of the 17th of November 2024, Etsy shows the Standard Deviation of 2.33, mean deviation of 1.61, and Variance of 5.42. Etsy Inc technical analysis allows you to utilize historical prices and volume patterns in order to determine a pattern that computes the direction of the firm's future prices.Etsy's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Etsy insiders, such as employees or executives, is commonly permitted as long as it does not rely on Etsy's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Etsy insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Nadal Toni Thompson over two months ago Disposition of 1104 shares by Nadal Toni Thompson of Etsy at 55.79 subject to Rule 16b-3 | ||
Ballard Andy over two months ago Disposition of 1860 shares by Ballard Andy of Etsy at 53.843 subject to Rule 16b-3 | ||
Merilee Buckley over three months ago Disposition of 3293 shares by Merilee Buckley of Etsy at 53.98 subject to Rule 16b-3 | ||
Nadal Toni Thompson over three months ago Disposition of 1316 shares by Nadal Toni Thompson of Etsy at 65.73 subject to Rule 16b-3 | ||
Ballard Andy over three months ago Disposition of 1875 shares by Ballard Andy of Etsy at 64.03 subject to Rule 16b-3 | ||
Raina Moskowitz over six months ago Disposition of 4846 shares by Raina Moskowitz of Etsy subject to Rule 16b-3 | ||
Daniel Nicholas over six months ago Disposition of 1391 shares by Daniel Nicholas of Etsy at 71.77 subject to Rule 16b-3 | ||
Josh Silverman over six months ago Acquisition by Josh Silverman of 69163 shares of Etsy subject to Rule 16b-3 |
Etsy's Outstanding Corporate Bonds
Etsy issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Etsy Inc uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Etsy bonds can be classified according to their maturity, which is the date when Etsy Inc has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| Volcan Compania Minera Corp BondUSP98047AC08 | View | |
| MPLX LP 52 Corp BondUS55336VAL45 | View | |
| US29786AAL08 Corp BondUS29786AAL08 | View | |
| MGM Resorts International Corp BondUS552953CD18 | View | |
| Valero Energy Partners Corp BondUS91914JAA07 | View |
Understand Etsy's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Etsy's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | (0.02) | |||
| Market Risk Adjusted Performance | (0.13) | |||
| Mean Deviation | 1.61 | |||
| Coefficient Of Variation | (2,485) | |||
| Standard Deviation | 2.33 | |||
| Variance | 5.42 | |||
| Information Ratio | (0.09) | |||
| Jensen Alpha | (0.17) | |||
| Total Risk Alpha | (0.40) | |||
| Treynor Ratio | (0.14) | |||
| Maximum Drawdown | 13.37 | |||
| Value At Risk | (4.28) | |||
| Potential Upside | 3.33 | |||
| Skewness | 0.5243 | |||
| Kurtosis | 2.32 |
| Risk Adjusted Performance | (0.02) | |||
| Market Risk Adjusted Performance | (0.13) | |||
| Mean Deviation | 1.61 | |||
| Coefficient Of Variation | (2,485) | |||
| Standard Deviation | 2.33 | |||
| Variance | 5.42 | |||
| Information Ratio | (0.09) | |||
| Jensen Alpha | (0.17) | |||
| Total Risk Alpha | (0.40) | |||
| Treynor Ratio | (0.14) | |||
| Maximum Drawdown | 13.37 | |||
| Value At Risk | (4.28) | |||
| Potential Upside | 3.33 | |||
| Skewness | 0.5243 | |||
| Kurtosis | 2.32 |
Consider Etsy's intraday indicators
Etsy intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Etsy stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Etsy Corporate Filings
13A | 13th of November 2024 An amended filing to the original Schedule 13G | ViewVerify |
F4 | 5th of November 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
10Q | 31st of October 2024 Quarterly performance report mandated by Securities and Exchange Commission (SEC), to be filed by publicly traded corporations | ViewVerify |
8K | 30th of October 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
Etsy Stock media impact
Far too much social signal, news, headlines, and media speculation about Etsy that are available to investors today. That information is available publicly through Etsy media outlets and privately through word of mouth or via Etsy internal channels. However, regardless of the origin, that massive amount of Etsy data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Etsy news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Etsy relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Etsy's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Etsy alpha.
Etsy Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Etsy can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Etsy Inc Historical Investor Sentiment
Investor biases related to Etsy's public news can be used to forecast risks associated with an investment in Etsy. The trend in average sentiment can be used to explain how an investor holding Etsy can time the market purely based on public headlines and social activities around Etsy Inc. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Etsy's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Etsy and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Etsy news discussions. The higher the estimate score, the more favorable the investor's outlook on Etsy.
Etsy Maximum Pain Price across 2024-11-22 Option Contracts
Etsy's options can also be used to analyze investors' bias and current market sentiment in the context of behavioral finance. For example, Max pain usually refers to a trading concept that asserts that market manipulation can cause the market price of Etsy close to the expiration of its current option contract to expire worthlessly. According to most research, about 35% of options are not executed, with roughly 50% traded out before expiration. So, Max pain occurs when market makers reach a net favorable position across all options at a strike price where option holders stand to lose the most money. By contrast, option sellers may reap the most after selling more options than buying, causing them to expire worthlessly. Please continue to view the detailed analysis of Etsy's options.
Etsy Corporate Management
| Jared Tarbell | CoFounder | Profile | |
| Michael Fisher | Chief Officer | Profile | |
| Ryan Scott | Chief Marketing Officer | Profile | |
| Robert Kalin | CoFounder | Profile | |
| Colin Stretch | Chief Secretary | Profile | |
| Nicholas Daniel | Chief Officer | Profile |
Additional Tools for Etsy Stock Analysis
When running Etsy's price analysis, check to measure Etsy's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Etsy is operating at the current time. Most of Etsy's value examination focuses on studying past and present price action to predict the probability of Etsy's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Etsy's price. Additionally, you may evaluate how the addition of Etsy to your portfolios can decrease your overall portfolio volatility.