Morgan Stanley Cuts Etsy (NASDAQ:ETSY) Price Target to $60.00

Etsy (NASDAQ:ETSY) had its price target cut by research analysts at Morgan Stanley from $65.00 to $60.00 in a report issued on Friday,MarketScreener reports. The brokerage currently has an “equal weight” rating on the specialty retailer’s stock. Morgan Stanley’s target price would suggest a potential upside of 16.87% from the company’s current price.

Several other research analysts have also recently weighed in on ETSY. The Goldman Sachs Group upped their price target on shares of Etsy from $48.00 to $57.00 and gave the stock a “sell” rating in a report on Thursday, October 30th. Cantor Fitzgerald lowered their price objective on shares of Etsy from $55.00 to $51.00 and set a “neutral” rating on the stock in a research report on Friday. Canaccord Genuity Group set a $72.00 price target on Etsy in a research report on Friday. Citigroup reiterated a “buy” rating on shares of Etsy in a report on Tuesday, December 30th. Finally, Deutsche Bank Aktiengesellschaft restated a “hold” rating and issued a $72.00 price objective on shares of Etsy in a report on Thursday, October 23rd. One investment analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating, eighteen have issued a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus price target of $60.88.

Etsy Stock Up 6.6%

NASDAQ ETSY traded up $3.20 during trading hours on Friday, reaching $51.34. 1,133,939 shares of the company were exchanged, compared to its average volume of 3,911,097. The stock has a market capitalization of $5.07 billion, a P/E ratio of 40.82, a P/E/G ratio of 10.65 and a beta of 1.77. The business’s 50 day simple moving average is $55.66 and its 200-day simple moving average is $59.49. Etsy has a 1 year low of $40.05 and a 1 year high of $76.51.

Etsy declared that its Board of Directors has initiated a share buyback plan on Thursday, December 18th that authorizes the company to buyback $750.00 million in shares. This buyback authorization authorizes the specialty retailer to purchase up to 14.2% of its stock through open market purchases. Stock buyback plans are often an indication that the company’s management believes its stock is undervalued.

Insider Activity at Etsy

In other news, CAO Merilee Buckley sold 5,636 shares of Etsy stock in a transaction that occurred on Monday, January 5th. The shares were sold at an average price of $58.45, for a total transaction of $329,424.20. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Also, insider Josh Silverman sold 21,666 shares of the business’s stock in a transaction on Monday, February 2nd. The stock was sold at an average price of $53.26, for a total transaction of $1,153,931.16. Following the completion of the transaction, the insider owned 90,661 shares in the company, valued at $4,828,604.86. This represents a 19.29% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 135,934 shares of company stock valued at $7,661,068 in the last ninety days. 2.80% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Etsy

Several hedge funds have recently made changes to their positions in ETSY. Holocene Advisors LP increased its stake in Etsy by 697.4% in the 2nd quarter. Holocene Advisors LP now owns 5,343,797 shares of the specialty retailer’s stock valued at $268,045,000 after buying an additional 4,673,615 shares during the period. AQR Capital Management LLC raised its holdings in shares of Etsy by 40.1% during the fourth quarter. AQR Capital Management LLC now owns 4,111,639 shares of the specialty retailer’s stock worth $227,785,000 after acquiring an additional 1,177,301 shares in the last quarter. Lone Pine Capital LLC purchased a new position in Etsy in the third quarter valued at about $257,614,000. Van ECK Associates Corp grew its position in Etsy by 1.1% in the fourth quarter. Van ECK Associates Corp now owns 3,734,156 shares of the specialty retailer’s stock worth $207,022,000 after acquiring an additional 39,067 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership increased its holdings in shares of Etsy by 62.3% during the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 3,692,134 shares of the specialty retailer’s stock valued at $185,197,000 after acquiring an additional 1,416,772 shares during the last quarter. Hedge funds and other institutional investors own 99.53% of the company’s stock.

Key Stories Impacting Etsy

Here are the key news stories impacting Etsy this week:

• Positive Sentiment: Etsy agreed to sell Depop to eBay for $1.2 billion in cash — the deal provides >$1B in liquidity, reduces exposure to a cash‑consuming non‑core business, and was the primary reason shares jumped. Forbes: Ebay Goes Long On Fashion Resale
• Positive Sentiment: Q4 results beat EPS estimates (reported $0.92 vs. ~$0.87 consensus) and the marketplace returned to slight year‑over‑year GMS growth — signs management can stabilize core metrics. PR Newswire: Etsy Q4 and FY2025 Results
• Positive Sentiment: Management’s refocus (capital and execution) on AI and mobile engagement to restart buyer growth is being highlighted as the strategic plan post‑Depop, which could drive longer‑term GMV and monetization gains. PYMNTS: Etsy Sells Depop, Pushes AI and Mobile
• Neutral Sentiment: Needham cut its price target from $76 to $65 but kept a Buy rating — the revised target signals tempered upside expectations while still suggesting material upside vs. current levels. Benzinga: Needham Lowers Target
• Neutral Sentiment: UBS maintained a Hold rating and lowered its target to $53, reflecting a valuation reset tied to modest near‑term GMS growth despite the cash infusion. TipRanks/UBS: Hold Rating
• Negative Sentiment: Coverage noted Etsy sold Depop at a markdown versus what it previously paid, meaning the divestiture is being recognized as a loss on the investment even if it improves near‑term cash and profitability. The Information: Depop Sale at a Loss
• Negative Sentiment: Despite the EPS beat, revenue roughly matched/trimmed expectations and the company reported lower profits in Q4; some analysts caution demand pressures persist — a reason for caution on sustained momentum. WSJ: Lower Profit Despite Higher Revenue
• Negative Sentiment: Insider activity: a director sold 300 shares recently — a small disclosure but sometimes read negatively by investors. SEC Form 4

About Etsy

Etsy, Inc (NASDAQ: ETSY) operates a global e-commerce marketplace focused on handmade, vintage and unique goods. The platform connects individual artisans, small businesses and collectors with buyers seeking one-of-a-kind items, ranging from handcrafted jewelry and clothing to home décor and art supplies. Etsy’s revenue is primarily generated through listing fees, transaction fees on sales and optional seller services such as advertising and shipping labels.

Founded in 2005 and headquartered in Brooklyn, New York, Etsy has cultivated a community-driven ethos, encouraging sustainable practices and personal entrepreneurship.