Etsy Stock Fair Value Calculation – Etsy Announces $1 Billion Stock Buyback Plan Amidst Insider Confidence and Lowered Stock Prices
November 9, 2024
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Etsy ($NASDAQ:ETSY), the popular e-commerce platform for handmade and unique goods, has recently made headlines with its latest announcement of a $1 billion stock buyback plan. This move comes amidst a significant drop in the company’s stock value, which currently stands at just 59% of its 52-week high. Despite this decline, insiders at Etsy remain confident in the company’s future and believe that the buyback plan is a strategic move to drive long-term shareholder value. The company’s mission is to reimagine commerce in ways that build a more fulfilling and lasting world. This significant decline in stock value has caused concern among investors and analysts, leading to a decrease in share prices. Despite this, Etsy’s management remains optimistic about the company’s future and believes that the current stock prices do not reflect the true value of the company. In light of this, Etsy’s management has approved a buyback plan of up to $1 billion in shares. This means that the company will repurchase its own stock from the market, reducing the number of shares outstanding. This move is seen as a vote of confidence from the company’s insiders, who believe that Etsy’s stock is currently undervalued.
By repurchasing shares, Etsy is effectively investing in itself, sending a strong message to investors that they believe in the future potential of the company. Furthermore, this buyback plan also aligns with Etsy’s commitment to driving long-term shareholder value. By reducing the number of outstanding shares, the company aims to increase earnings per share and ultimately boost shareholder value. This decision also signals that Etsy’s management is focused on the long-term growth and success of the company rather than short-term fluctuations in stock prices. In conclusion, Etsy’s $1 billion stock buyback plan is a strategic move that showcases the company’s confidence in its future despite the current challenges. This plan not only demonstrates Etsy’s commitment to driving long-term shareholder value but also sends a positive message to investors about the company’s potential for growth and success. As Etsy continues to navigate through these uncertain times, this buyback plan may be just what the company needs to come out stronger and more resilient in the long run.
Share Price
On Tuesday, ETSY, the popular e-commerce website for handmade and vintage items, made a significant announcement regarding its stock buyback plan. The company revealed that it plans to buy back $1 billion worth of its own stock, showcasing confidence from its insiders and aiming to boost investor sentiment amidst lowered stock prices. The news of the stock buyback plan comes at a time when ETSY’s stock prices have been on a downward trend. On Tuesday, ETSY’s stock opened at $51.6 and closed at $52.73, representing a modest increase of 0.88% from the previous closing price of $52.27. The decision to implement a stock buyback plan is often seen as a way for companies to signal their confidence in their own performance and financial stability. By buying back its own shares, ETSY is essentially investing in itself and showing that it believes in its future growth potential. This move may also be seen as a way to increase shareholder value, as it reduces the number of outstanding shares and can potentially lead to an increase in stock price.
Additionally, the fact that this buyback plan was announced by the company’s insiders, including CEO Josh Silverman, adds another layer of confidence to the decision. Insiders are those who have intimate knowledge of the company’s operations and financials, making their actions and decisions highly influential to investors. The announcement of the buyback plan also comes at a time when ETSY has been experiencing some challenges in its business. In its recent earnings report, the company showed lower-than-expected revenue and a decline in gross merchandise sales. In conclusion, ETSY’s announcement of a $1 billion stock buyback plan reflects both confidence from its insiders and a strategic move to potentially improve investor sentiment amidst lowered stock prices. It remains to be seen how this decision will impact the company’s financials and stock performance in the long run, but it certainly sends a positive message to stakeholders about ETSY’s belief in its own growth potential. Etsy_Announces_1_Billion_Stock_Buyback_Plan_Amidst_Insider_Confidence_and_Lowered_Stock_Prices”>Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Etsy. More…
| Total Revenues | Net Income | Net Margin |
| 2.75k | 307.57 | 13.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Etsy. More…
| Operations | Investing | Financing |
| 705.51 | -73.31 | -656.53 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Etsy. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.69k | 3.23k | -5.2 |
Key Ratios Snapshot
Some of the financial key ratios for Etsy are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 16.8% | -6.4% | 12.7% |
| FCF Margin | ROE | ROA |
| 24.2% | -34.9% | 8.1% |
Analysis – Etsy Stock Fair Value Calculation
After carefully analyzing ETSY’s financial data, it is clear that the current intrinsic value of their share is around $155.5. This valuation has been calculated using our proprietary Valuation Line, which takes into account various factors such as revenue, profitability, and market trends. However, the current market price of ETSY stock is only $52.73. This discrepancy between the intrinsic value and market price suggests that the stock is currently undervalued by a significant 66.1%. As an investor, this presents a great opportunity to purchase ETSY shares at a discounted price. Our analysis also took into consideration the company’s performance and future prospects. ETSY has been consistently growing its revenue and profitability, indicating a strong and stable business model. Additionally, the increasing popularity of e-commerce and the unique nature of ETSY’s marketplace make it well-positioned for future growth. Considering all these factors, we believe that ETSY stock has great potential for long-term investment and is currently undervalued in the market. As GoodWhale, we recommend considering purchasing ETSY shares at this discounted price for potential future gains. Etsy_Announces_1_Billion_Stock_Buyback_Plan_Amidst_Insider_Confidence_and_Lowered_Stock_Prices”>More…
Peers
Etsy Inc is a leading ecommerce company that focuses on selling handmade and vintage items. The company competes with other ecommerce giants such as eBay Inc, Poshmark Inc, and Zalando SE. Etsy has a loyal customer base and a strong brand identity. The company differentiates itself from its competitors by offering unique items that cannot be found elsewhere. Etsy is a publicly traded company that was founded in 2005.
– eBay Inc ($NASDAQ:EBAY)
eBay Inc is an American multinational e-commerce corporation based in San Jose, California, that facilitates consumer-to-consumer and business-to-consumer sales through its website. eBay was founded by Pierre Omidyar in 1995, and became a notable success story of the dot-com bubble. Today, it is a multibillion-dollar business with operations in about 30 countries.
The company has a market cap of 21.15B as of 2022 and a Return on Equity of -37.67%. eBay’s business model is based on enabling sellers to offer their items for sale on the platform, and buyers to find items they are looking for and purchase them. The company does not own or inventory the items being sold on its platform – instead, it simply facilitates the transaction between buyers and sellers.
eBay makes money by charging sellers a listing fee for each item they list for sale on the platform, as well as a commission on each item that is sold. In addition, the company also generates revenue from advertising and other fees.
– Poshmark Inc ($NASDAQ:POSH)
Poshmark is a social commerce platform for buying and selling fashion. It has a community of over 50 million sellers and buyers. Poshmark was founded in 2011 and is headquartered in Redwood City, California.
Poshmark’s market cap is 1.4B as of 2022. The company has a Return on Equity of -9.05%. Poshmark is a social commerce platform for buying and selling fashion. It has a community of over 50 million sellers and buyers. Poshmark was founded in 2011 and is headquartered in Redwood City, California.
– Zalando SE ($OTCPK:ZLNDY)
Zalando SE is a publicly traded German e-commerce company specializing in fashion, headquartered in Berlin. Founded in 2008, Zalando SE went public in 2014. As of 2022, Zalando SE has a market cap of 5.9B and a Return on Equity of 4.78%.
Zalando SE offers a platform for fashion and lifestyle. The company offers a wide range of products from over 2,000 brands for women, men, and children. The company operates in 15 European countries.
Summary
Etsy management has announced their plan to invest up to $1 billion in buybacks, signaling their confidence in the company’s future despite a recent decline in stock price. This move comes after the stock traded down to 59% of its 52-week high, making it seem cheap enough for insiders to start buying. The decision to invest in buybacks could potentially drive up the stock price and increase shareholder value. It also suggests that Etsy management believes the company is undervalued and has a positive outlook for its future growth.
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