Etsy Inc. [NASDAQ: ETSY] surged by $3.29 during the normal trading session on Tuesday and reaching a high of $135.345 during the day while it closed the day at $133.01. The company report on August 18, 2020 that Etsy Announces Proposed Private Offering of $650 Million of Convertible Senior Notes.
Etsy, Inc. (Nasdaq: ETSY), which operates two-sided online marketplaces that connect millions of passionate and creative buyers and sellers around the world, today announced that it intends to offer, subject to market conditions and other factors, $650 million aggregate principal amount of convertible senior notes due 2027 (the “notes”) in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”).
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The notes will be general unsecured obligations of Etsy and will accrue interest payable semiannually in arrears. The notes will be convertible into cash, shares of Etsy’s common stock or a combination of cash and shares of Etsy’s common stock, at Etsy’s election. The interest rate, initial conversion rate and other terms of the notes will be determined at the time of pricing of the offering. Etsy expects to use a portion of the net proceeds from the offering to pay the cost of the capped call transactions described below and to repurchase a portion of its outstanding 0% Convertible Senior Notes due 2023 (the “2023 notes”) as described below. Etsy intends to use the remainder of the net proceeds from the offering for general corporate purposes, which may include other repurchases of Etsy’s common stock from time to time under Etsy’s existing stock repurchase program described below or any future stock repurchase program, working capital, operating expenses and capital expenditures.
Etsy Inc. stock has also gained 4.32% of its value over the past 7 days. However, ETSY stock has inclined by 72.55% in the 3 months of the year. Over the past six months meanwhile, it has gained 150.11% and gained 200.25% year-on date.
The market cap for ETSY stock reached $15.81 billion, with 118.87 million shares outstanding and 118.49 million shares in the current float. Compared to the average trading volume of 3.53M shares, ETSY reached a trading volume of 3502131 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Here’s what leading stock market gurus have to say about Etsy Inc. [ETSY]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for ETSY shares is $98.00 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on ETSY stock is a recommendation set at 1.90. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
ROTH Capital have made an estimate for Etsy Inc. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on August 06, 2020. While these analysts kept the previous recommendation, Needham dropped their target price from $88 to $130. The new note on the price target was released on August 03, 2020, representing the official price target for Etsy Inc. stock. Previously, the target price had yet another raise from $79 to $117, while RBC Capital Mkts kept a Outperform rating on ETSY stock. On June 10, 2020, analysts increased their price target for ETSY shares from 71 to 110.
The Average True Range (ATR) for Etsy Inc. is set at 6.40, with the Price to Sales ratio for ETSY stock in the period of the last 12 months amounting to 14.05. The Price to Book ratio for the last quarter was 30.16, with the Price to Cash per share for the same quarter was set at 8.78. Price to Free Cash Flow for ETSY in the course of the last twelve months was 41.89 with Quick ratio for the last quarter at 4.30.
ETSY stock trade performance evaluation
Etsy Inc. [ETSY] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 4.32. With this latest performance, ETSY shares gained by 24.67% in over the last four-week period, additionally plugging by 150.11% over the last 6 months – not to mention a rise of 153.79% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for ETSY stock in for the last two-week period is set at 65.32, with the RSI for the last a single of trading hit 64.92, and the three-weeks RSI is set at 65.17 for Etsy Inc. [ETSY]. The present Moving Average for the last 50 days of trading for this stock 107.81, while it was recorded at 128.55 for the last single week of trading, and 66.85 for the last 200 days.
Etsy Inc. [ETSY]: An insightful look at the core fundamentals
Operating Margin for any stock indicates how profitable investing would be, and Etsy Inc. [ETSY] shares currently have an operating margin of +11.32 and a Gross Margin at +66.88. Etsy Inc.’s Net Margin is presently recorded at +11.72.
Return on Total Capital for ETSY is now 9.16, given the latest momentum, and Return on Invested Capital for the company is 9.56. Return on Equity for this stock inclined to 23.75, with Return on Assets sitting at 7.85. When it comes to the capital structure of this company, Etsy Inc. [ETSY] has a Total Debt to Total Equity ratio set at 214.80. Additionally, ETSY Total Debt to Total Capital is recorded at 68.23, with Total Debt to Total Assets ending up at 56.63. Long-Term Debt to Equity for the company is recorded at 211.75, with the Long-Term Debt to Total Capital now at 67.26.
Reflecting on the efficiency of the workforce at the company, Etsy Inc. [ETSY] managed to generate an average of $77,334 per employee. Receivables Turnover for the company is 16.62 with a Total Asset Turnover recorded at a value of 0.67.Etsy Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 4.30 and a Current Ratio set at 4.30.
Earnings per share (EPS) analysis for Etsy Inc. [ETSY] stock
With the latest financial reports released by the company, Etsy Inc. posted 0.12/share EPS, while the average EPS was predicted by analysts to be reported at 0.12/share. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for ETSY. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Etsy Inc. go to 58.65%.
Etsy Inc. [ETSY]: Insider Ownership positions
There are presently around $14,738 million, or 95.50% of ETSY stock, in the hands of institutional investors. The top three institutional holders of ETSY stocks are: BLACKROCK INC. with ownership of 11,251,947, which is approximately 5.039% of the company’s market cap and around 0.60% of the total institutional ownership; VANGUARD GROUP INC, holding 11,125,455 shares of the stock with an approximate value of $1.48 billion in ETSY stocks shares; and WELLINGTON MANAGEMENT GROUP LLP, currently with $720.71 million in ETSY stock with ownership of nearly -32.301% of the company’s market capitalization.
Positions in Etsy Inc. stocks held by institutional investors increased at the end of August and at the time of the August reporting period, where 283 institutional holders increased their position in Etsy Inc. [NASDAQ:ETSY] by around 17,934,610 shares. Additionally, 206 investors decreased positions by around 24,079,331 shares, while 31 investors held positions by with 68,793,424 shares. The mentioned changes placed institutional holdings at 110,807,365 shares, according to the latest SEC report filing. ETSY stock had 154 new institutional investments in for a total of 6,382,150 shares, while 47 institutional investors sold positions of 3,819,823 shares during the same period.