BROOKLYN, NY—Daniel Nicholas, the Chief Product Officer of Etsy Inc . (NASDAQ:ETSY), recently sold a portion of his holdings in the company. According to a filing with the Securities and Exchange Commission, Nicholas sold 1,500 shares of common stock on December 2, 2024. The shares were sold at a weighted average price of $54.60, with the transaction amounting to a total of $81,900. The sale comes as Etsy trades near $59, significantly below its InvestingPro Fair Value, despite maintaining a strong financial health rating and active share buyback program.
The sales were executed under a pre-established Rule 10b5-1 trading plan, which Nicholas adopted on August 12, 2024. This plan allows company insiders to set up a predetermined schedule for selling stocks to avoid potential conflicts of interest.
Following this transaction, Nicholas retains direct ownership of 22,871 shares of Etsy stock. The shares were sold in multiple transactions, with prices ranging from $54.13 to $54.89 per share, as noted in the filing. Nicholas has committed to providing further details about the transactions upon request.
In other recent news, Etsy's third-quarter performance showed a year-over-year decline in Gross Merchandise Sales (GMS) of 4.1%, and a 6% drop in its core marketplace. Despite these trends, the e-commerce platform reported revenues of $662.4 million, surpassing the expected $652.5 million, and an Adjusted EBITDA of $183.6 million, which was above the forecast of $177.4 million. This was backed by an increased take rate and a solid adjusted EBITDA margin of approximately 28%.
In response, Goldman Sachs (NYSE:GS) increased Etsy's price target to $47.00, maintaining a Sell rating, while Barclays (LON:BARC) reduced its price target to $55, and BTIG lowered it to $65, both retaining their previous ratings. These adjustments were influenced by Etsy's mixed financial performance and the current economic climate.
Additionally, Etsy announced a new $1 billion share buyback program and introduced physical gift cards and improved customer experience features, demonstrating its strategic adjustments to foster long-term growth. However, the active seller count decreased to 6.2 million, a decline from the previous year.
These recent developments highlight Etsy's resilience and strategic navigation amid challenging market conditions. Despite a decline in GMS, Etsy's revenue growth and stable active buyer count indicate a robust business model capable of weathering market fluctuations.
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