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Etsy Stock Falters After Earnings Report

Several analysts lifted their price targets

Digital Content Manager
May 7, 2020 at 10:03 AM
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Etsy Inc (NASDAQ:ETSY) last night posted first-quarter earnings of 10 cents per share, which came in lower than analyst estimates, on $228.06 million in revenue, which beat estimates. Etsy also forecast a higher-than-expected 90% surge in sales for its second quarter, adding that its sales doubled in April thanks to the demand for homemade masks on its website. Despite this, ETSY is down 1.6% this morning at $76.99, just one day after hitting an all-time high of $78.63. 

No less than nine analyst lifted their price targets, despite the earnings miss, including Keybanc and D.A. Davidson, which both lifted their estimates to $90. Coming into today 12 of the 16 analysts in coverage called ETSY a "buy" or better, while the 12-month consensus price target of $79.41 is a 1.7% premium to current levels. 

As we mentioned earlier, ETSY has been no slouch on the charts. The security just gapped above the $70 level to notch two consecutive record highs earlier this week, and is now up 76.6% year-to-date. What's more, the security just came off its best month ever, up 68.8% in April. 

Options bears have been surprisingly active lately, with 1.01 puts picked up for every call in the last 10 weeks at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio sits in the 96th percentile of its annual range, too, suggesting this appetite for bearish bets is unusual. 

 

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