Etsy (NASDAQ:ETSY) Shares Gap Up After Earnings Beat

Etsy, Inc. (NASDAQ:ETSY) gapped up prior to trading on Thursday following a better than expected earnings announcement. The stock had previously closed at $44.05, but opened at $48.56. Etsy shares last traded at $48.0960, with a volume of 4,875,808 shares traded.

The specialty retailer reported $0.92 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.87 by $0.05. Etsy had a net margin of 5.78% and a negative return on equity of 31.10%. During the same period in the previous year, the firm earned $1.03 earnings per share. The business’s revenue for the quarter was up 3.5% on a year-over-year basis.

Etsy declared that its Board of Directors has approved a stock buyback program on Thursday, December 18th that allows the company to buyback $750.00 million in outstanding shares. This buyback authorization allows the specialty retailer to purchase up to 14.2% of its shares through open market purchases. Shares buyback programs are typically a sign that the company’s management believes its shares are undervalued.

More Etsy News

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 reduces distraction from a non-core business, immediately boosts liquidity and simplifies the company’s strategy to focus on its core marketplace. Read More.
• Positive Sentiment: Q4 2025 results: Etsy reported $0.92 EPS vs. consensus $0.87 and slight year-over-year revenue growth (GMS up modestly) — an earnings beat that supports the stock’s upside narrative. Read More.
• Neutral Sentiment: Company outlook: Etsy says its marketplace returned to slight GMS growth in Q4 and expects GMS growth in FY2026 — positive on trend but guidance is not aggressive and execution will matter. Read More.
• Negative Sentiment: Depop sale appears to be at a markdown vs. prior carrying value — outlets report Etsy took a loss on the divestiture, which raises questions about prior investment value and write-downs. Read More.
• Negative Sentiment: Profitability and returns remain pressured: media coverage notes lower Q4 profit despite higher revenue and Etsy shows a negative return on equity (≈ -31%) and thin net margins — structural margin recovery is not yet proven. Read More.
• Negative Sentiment: High short interest amplified the move but also increases volatility risk — some of the share-price strength may be driven by a short squeeze rather than fundamental re-rating. Read More.

Analyst Ratings Changes

A number of research firms have commented on ETSY. Stifel Nicolaus lowered their price objective on Etsy from $65.00 to $62.00 and set a “hold” rating on the stock in a research note on Tuesday, January 27th. Canaccord Genuity Group upped their price target on shares of Etsy from $76.00 to $80.00 and gave the stock a “buy” rating in a report on Thursday, October 30th. Citigroup reissued a “buy” rating on shares of Etsy in a research note on Tuesday, December 30th. Deutsche Bank Aktiengesellschaft restated a “hold” rating and set a $72.00 target price on shares of Etsy in a research note on Thursday, October 23rd. Finally, Morgan Stanley boosted their price target on Etsy from $61.00 to $65.00 and gave the stock an “equal weight” rating in a report on Wednesday, October 29th. One investment analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating, eighteen have issued a Hold rating and three have assigned a Sell rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of “Hold” and a consensus price target of $63.52.

Insider Buying and Selling

In related news, insider Josh Silverman sold 21,666 shares of the business’s stock in a transaction on Monday, February 2nd. The shares were sold at an average price of $53.26, for a total value of $1,153,931.16. Following the sale, the insider owned 90,661 shares of the company’s stock, valued at $4,828,604.86. The trade was a 19.29% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CAO Merilee Buckley sold 5,636 shares of the stock in a transaction dated Monday, January 5th. The shares were sold at an average price of $58.45, for a total value of $329,424.20. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 135,634 shares of company stock worth $7,647,664 over the last three months. Insiders own 2.80% of the company’s stock.

Institutional Trading of Etsy

Large investors have recently bought and sold shares of the business. Holocene Advisors LP boosted its position in shares of Etsy by 697.4% during the 2nd quarter. Holocene Advisors LP now owns 5,343,797 shares of the specialty retailer’s stock valued at $268,045,000 after purchasing an additional 4,673,615 shares in the last quarter. Lone Pine Capital LLC acquired a new position in Etsy in the third quarter valued at approximately $257,614,000. Arrowstreet Capital Limited Partnership lifted its stake in Etsy by 62.3% in the second quarter. Arrowstreet Capital Limited Partnership now owns 3,692,134 shares of the specialty retailer’s stock valued at $185,197,000 after buying an additional 1,416,772 shares during the period. Norges Bank bought a new position in shares of Etsy during the 2nd quarter worth approximately $65,207,000. Finally, AQR Capital Management LLC grew its position in shares of Etsy by 40.1% during the 4th quarter. AQR Capital Management LLC now owns 4,111,639 shares of the specialty retailer’s stock worth $227,785,000 after buying an additional 1,177,301 shares during the period. 99.53% of the stock is currently owned by institutional investors and hedge funds.

Etsy Trading Up 9.5%

The firm’s 50-day moving average price is $55.76 and its 200 day moving average price is $59.57. The company has a market cap of $4.76 billion, a price-to-earnings ratio of 38.93, a P/E/G ratio of 10.65 and a beta of 1.77.

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.