Invenomic Capital Management LP Sells 391,399 Shares of Etsy, Inc. (NASDAQ:ETSY)

Invenomic Capital Management LP reduced its holdings in shares of Etsy, Inc. (NASDAQ:ETSY) by 71.6% in the third quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 155,314 shares of the specialty retailer’s stock after selling 391,399 shares during the period. Invenomic Capital Management LP owned 0.14% of Etsy worth $8,625,000 as of its most recent SEC filing.

A number of other hedge funds have also added to or reduced their stakes in ETSY. Blue Trust Inc. lifted its position in Etsy by 106.5% in the 3rd quarter. Blue Trust Inc. now owns 448 shares of the specialty retailer’s stock worth $26,000 after buying an additional 231 shares during the last quarter. UMB Bank n.a. grew its holdings in Etsy by 112.3% during the 3rd quarter. UMB Bank n.a. now owns 552 shares of the specialty retailer’s stock valued at $31,000 after buying an additional 292 shares in the last quarter. 1620 Investment Advisors Inc. purchased a new stake in Etsy during the second quarter valued at approximately $42,000. Capital Performance Advisors LLP purchased a new stake in Etsy in the 3rd quarter valued at about $43,000. Finally, Prospera Private Wealth LLC bought a new position in Etsy in the third quarter worth about $59,000. Institutional investors and hedge funds own 99.53% of the company’s stock.

Etsy Stock Performance

Shares of ETSY opened at $55.43 on Tuesday. The stock has a 50-day simple moving average of $52.06 and a 200-day simple moving average of $56.24. Etsy, Inc. has a 1 year low of $47.10 and a 1 year high of $89.58. The stock has a market capitalization of $6.24 billion, a PE ratio of 28.30, a PEG ratio of 6.48 and a beta of 1.99.

Etsy (NASDAQ:ETSY) last released its quarterly earnings data on Wednesday, October 30th. The specialty retailer reported $0.45 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.54 by ($0.09). The business had revenue of $662.40 million for the quarter, compared to analysts’ expectations of $652.47 million. Etsy had a negative return on equity of 46.79% and a net margin of 9.17%. Etsy’s quarterly revenue was up 4.1% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.64 earnings per share. Analysts predict that Etsy, Inc. will post 2.25 EPS for the current year.

Etsy declared that its board has authorized a stock buyback program on Wednesday, October 30th that allows the company to repurchase $1.00 billion in shares. This repurchase authorization allows the specialty retailer to repurchase up to 17.8% of its stock through open market purchases. Stock repurchase programs are often a sign that the company’s board of directors believes its stock is undervalued.

Insider Transactions at Etsy

In related news, insider Nicholas Daniel sold 750 shares of the business’s stock in a transaction that occurred on Tuesday, October 1st. The stock was sold at an average price of $53.15, for a total transaction of $39,862.50. Following the transaction, the insider now directly owns 25,121 shares of the company’s stock, valued at approximately $1,335,181.15. The trade was a 2.90 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CAO Merilee Buckley sold 1,676 shares of the company’s stock in a transaction on Thursday, October 3rd. The stock was sold at an average price of $51.11, for a total transaction of $85,660.36. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 5,069 shares of company stock worth $261,888. Insiders own 2.60% of the company’s stock.

Analysts Set New Price Targets

Several brokerages have recently weighed in on ETSY. Wells Fargo & Company lowered their target price on Etsy from $47.00 to $44.00 and set an “underweight” rating on the stock in a report on Friday, November 1st. Stifel Nicolaus dropped their price target on Etsy from $64.00 to $56.00 and set a “hold” rating on the stock in a research report on Monday, October 28th. Cantor Fitzgerald reissued a “neutral” rating and issued a $50.00 price objective on shares of Etsy in a research report on Monday, October 7th. Deutsche Bank Aktiengesellschaft raised their price objective on Etsy from $48.00 to $50.00 and gave the company a “hold” rating in a report on Friday, November 1st. Finally, Loop Capital reduced their price target on shares of Etsy from $50.00 to $45.00 and set a “sell” rating for the company in a research report on Monday, August 12th. Four analysts have rated the stock with a sell rating, thirteen have assigned a hold rating, seven have issued a buy rating and one has given a strong buy rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average target price of $64.71.

Etsy Company Profile

Etsy, Inc, together with its subsidiaries, operates two-sided online marketplaces that connect buyers and sellers in the United States, the United Kingdom, Germany, Canada, Australia, and France. Its primary marketplace is Etsy.com that connects artisans and entrepreneurs with various consumers. The company also offers Reverb, a musical instrument marketplace; Depop, a fashion resale marketplace; and Elo7, a Brazil-based marketplace for handmade and unique items.