Etsy (NYSE:ETSY) Stock Price Down 7.6% Following Analyst Downgrade

Posted by Geri Gentry on Sep 26th, 2026

Shares of Etsy Inc (NYSE:ETSY – Get Free Report) were down 7.6% on Thursday after Arete Research downgraded the stock from a buy rating to a hold rating. Arete Research now has a $81.00 price target on the stock. Etsy traded as low as $68.57 and last traded at $68.1150. Approximately 1,701,717 shares traded hands during trading, a decline of 48% from the average session volume of 3,249,410 shares. The stock had previously closed at $73.70.

A number of other equities analysts also recently commented on ETSY. Citigroup raised their target price on shares of Etsy from $60.00 to $92.00 and gave the company a “neutral” rating in a research note on Friday, August 7th. Piper Sandler upped their price target on shares of Etsy from $70.00 to $80.00 and gave the stock a “neutral” rating in a research report on Friday, August 7th. President Capital raised shares of Etsy from a “neutral” rating to a “buy” rating and upped their price target for the stock from $57.00 to $91.00 in a research report on Thursday, June 25th. Wedbush assumed coverage on Etsy in a report on Thursday, July 16th. They issued a “neutral” rating and a $80.00 price target for the company. Finally, Weiss Ratings lowered Etsy from a “hold (c)” rating to a “hold (c-)” rating in a research report on Thursday, August 6th. Three research analysts have rated the stock with a Strong Buy rating, fourteen have given a Buy rating, seventeen have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $86.21.

Read Our Latest Analysis on Etsy

Insider Activity at Etsy

In other news, Director Frederick R. Wilson sold 20,000 shares of the company’s stock in a transaction on Tuesday, September 1st. The shares were sold at an average price of $81.86, for a total value of $1,637,200.00. Following the completion of the transaction, the director directly owned 401,329 shares in the company, valued at approximately $32,852,791.94. This represents a 4.75% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Charles Ballard sold 4,500 shares of the firm’s stock in a transaction on Wednesday, August 26th. The shares were sold at an average price of $81.85, for a total transaction of $368,325.00. Following the sale, the director directly owned 4,239 shares of the company’s stock, valued at approximately $346,962.15. The trade was a 51.49% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 271,149 shares of company stock valued at $21,391,497. 2.50% of the stock is currently owned by corporate insiders.

More Etsy News

Here are the key news stories impacting Etsy this week:

Neutral Sentiment: Arete Research downgraded Etsy from “Buy” to “Hold” and lowered its price target to $81 from $85. Although the revised target remains above the recent trading level, the downgrade signals reduced confidence in Etsy’s near-term upside. Arete Downgrades Etsy to Neutral From Buy, Adjusts Price Target to $81 From $85
Negative Sentiment: Reports say some Etsy sellers are considering or already moving off the platform as AI-generated products increasingly appear alongside handmade goods. A larger volume of low-quality “AI slop” could weaken Etsy’s curated, handmade-marketplace identity, reduce buyer trust and make it harder for genuine sellers to compete. Etsy sellers are quitting as AI slop floods the handmade marketplace
Negative Sentiment: Investor concerns over Meta’s Muse AI agent are weighing on Etsy and other online marketplaces. Muse is designed to shop across websites on a user’s behalf, raising fears that AI agents could bypass direct visits to Etsy, weaken customer acquisition and reduce the value of Etsy’s marketplace gateway. Why Etsy Stock Is Trading Lower Today
Negative Sentiment: The broader selloff in marketplace stocks linked to AI-agent adoption suggests the pressure is sector-wide, but Etsy may be particularly exposed because its valuation depends on maintaining unique buyer traffic and seller engagement. Etsy, CarGurus, Cars.com, and EverQuote Shares Are Falling

Hedge Funds Weigh In On Etsy

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Sequoia Financial Advisors LLC boosted its holdings in Etsy by 10.3% in the second quarter. Sequoia Financial Advisors LLC now owns 4,584 shares of the company’s stock valued at $345,000 after purchasing an additional 429 shares during the last quarter. Engineers Gate Manager LP increased its holdings in Etsy by 56.2% during the 2nd quarter. Engineers Gate Manager LP now owns 77,568 shares of the company’s stock worth $5,843,000 after purchasing an additional 27,908 shares during the last quarter. Baird Financial Group Inc. purchased a new stake in Etsy during the 2nd quarter worth approximately $226,000. Allworth Financial LP raised its position in shares of Etsy by 37.8% in the 2nd quarter. Allworth Financial LP now owns 1,808 shares of the company’s stock valued at $136,000 after purchasing an additional 496 shares in the last quarter. Finally, Empirical Finance LLC acquired a new position in shares of Etsy in the 2nd quarter valued at approximately $267,000. 99.53% of the stock is owned by hedge funds and other institutional investors.

Etsy Trading Down 0.6%

The company has a market capitalization of $6.51 billion, a price-to-earnings ratio of 38.32, a price-to-earnings-growth ratio of 1.72 and a beta of 1.81. The stock has a 50-day simple moving average of $79.36 and a 200-day simple moving average of $69.48.

Etsy (NYSE:ETSY – Get Free Report) last released its quarterly earnings results on Wednesday, August 5th. The company reported ($0.49) earnings per share for the quarter, missing analysts’ consensus estimates of $0.75 by ($1.24). The company had revenue of $668.31 million for the quarter, compared to analyst estimates of $646.10 million. Etsy had a negative return on equity of 34.18% and a net margin of 7.32%.The firm’s quarterly revenue was down .7% compared to the same quarter last year. During the same period in the previous year, the business posted $0.25 EPS. On average, research analysts forecast that Etsy Inc will post 3.94 EPS for the current year.

About Etsy

(Get Free Report)

Etsy, Inc operates a global online marketplace that connects buyers with independent sellers offering handmade, personalized and vintage goods, as well as craft supplies. Its marketplace includes products such as jewelry, clothing, home décor, art, gifts and party supplies.

The company provides tools and services that support commerce on its platform, including seller storefronts, search and discovery features, payment processing, advertising, shipping solutions and customer support. Etsy primarily serves individual entrepreneurs and small businesses seeking to reach consumers interested in distinctive and creatively designed products.

Founded in 2005 and headquartered in Brooklyn, New York, Etsy serves buyers and sellers in numerous countries.