What Happened?
Shares of online marketplace Etsy (NASDAQ:ETSY) jumped 3.1% in the morning session after the company's latest 13F filing revealed a significant increase in ownership by an institutional investor.
Cerity Partners LLC boosted its stake in the specialty e-commerce retailer by over 211%, purchasing an additional 64,279 shares during the first quarter, according to a filing with the Securities and Exchange Commission made public today. This purchase brought the firm's total holdings to 94,691 shares, valued at approximately $4.47 million. Such a substantial increase in a position by an institutional investor was seen as a vote of confidence in the company's future prospects, despite recent headwinds from a competitive e-commerce landscape and pressures on consumer discretionary spending., The move came even as analysts held a mixed "Hold" consensus rating on the stock.
After the initial pop the shares cooled down to $59.17, up 2% from previous close.
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What Is The Market Telling Us
Etsy’s shares are quite volatile and have had 18 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 9 months ago when the stock gained 11.8% on the news that the company reported impressive third-quarter earnings, which beat analysts' revenue, EBITDA, and EPS expectations. The result highlighted the ability to balance growth and profitability despite the observed pressure on Etsy marketplace year-over-year GMS (gross marchandise sales),. Overall, this was a good quarter.
Etsy is up 11.4% since the beginning of the year, but at $59.17 per share, it is still trading 9.2% below its 52-week high of $65.14 from July 2024. Investors who bought $1,000 worth of Etsy’s shares 5 years ago would now be looking at an investment worth $554.60.
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