Etsy Inc (ETSY) Shares Plummet — Is The Company Now an Acquisition Target?


Shares of Etsy Inc (NASDAQ:ETSY) are trading down significantly this morning after research firm ROTH Capital initiated the stock at a ‘Sell,’ along with a rather low price target of just $5.75 per share. Considering the fact that the stock closed trading yesterday at $8.71 per share, this certainly is not a good thing for shareholders. The stock, which at one point over the last year has traded as high as $35.74, is approaching new all time lows. Currently the market cap of Etsy Inc (NASDAQ:ETSY) is just $911 million, making it perhaps a solid acquisition target for a larger company such as Ebay, Alibaba, or even an Amazon.

Despite the drop in share price, volume is fairly low on the day. The stock has fallen 5.40% or $0.47 following this negative news, hitting $8.24 per share. Approximately 135,531 shares traded hands. ETSY shares have declined 58.52% since May 19, 2015 and are currently downtrending. It has underperformed the S&P500 by 56.26%.

From a total of 4 analysts covering Etsy (NASDAQ:ETSY) stock, 1 rate it a “Buy”, 0 a “Sell”, and 3 a “Hold”. This means that 25% of the ratings are positive. The highest target price is $23 while the lowest target price is $9. The mean of all analyst targets is $12.28 which is 49.03% above today’s ($8.24) stock price. Etsy was the topic of 11 analyst reports since August 4, 2015 according to the firm StockzIntelligence Inc. Topeka Capital Markets initiated shares on November 18 with a “Hold” rating. Brean Capital maintained ETSY stock in a recent report from November 4 with a “Buy” rating. Finally, Vetr upgraded the stock to a “Strong Sell” rating in a report they issued on an August 19.

Etsy, Inc. operates a marketplace where people connect, both online and offline, to make, sell and buy goods. The company has a market cap of $914.17 million. The Firm operates at the center of macroeconomic trends in online and mobile commerce, employment, consumption and manufacturing. It currently has negative earnings. The Company’s sellers offer goods in online retail categories, including jewelry, stationery, clothing, home goods, craft supplies and vintage items.