• A large institutional investor has increased its stake in Etsy, making NYSE:ETSY one of its biggest holdings.
• Depop, Etsy's fashion resale platform, has become an important growth engine, now representing a meaningful share of total gross merchandise sales.
• These moves highlight growing institutional interest in Etsy and a shift in where the company's commerce activity is coming from.

Etsy's share price sits at $53.61, with returns over the past 3 years and 5 years showing declines of 62.9% and 76.9% respectively. That backdrop makes the larger institutional position in NYSE:ETSY stand out, as it arrives after a long period of weaker share price performance. For existing or potential shareholders, it raises the question of what is changing inside the business rather than on the price chart alone.

Depop's bigger role in Etsy's gross merchandise sales gives you a clearer focal point for tracking how the company is evolving. As this resale platform accounts for more of the overall activity on Etsy, investors may pay closer attention to user trends, monetization choices, and how Depop fits with the core marketplace over time.

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Quick Assessment

• ✅ Price vs Analyst Target: At US$53.61, Etsy trades about 20% below the US$66.89 analyst price target.
• ✅ Simply Wall St Valuation: The shares are flagged as undervalued, trading 50.8% below the estimated fair value.
• ❌ Recent Momentum: The 30 day return of 6.4% decline shows negative short term momentum despite the institutional interest.

Check out Simply Wall St's in depth valuation analysis for Etsy.

Key Considerations

• 📊 A larger institutional stake can signal confidence in Etsy's long term business drivers, including the growing role of Depop.
• 📊 Keep an eye on Depop's share of gross merchandise sales, Etsy's P/E of 29.1 versus the 18.9 industry average, and how revenue and net income trends support that premium.
• ⚠️ The risk checks highlight five issues, including negative shareholders' equity, which makes the balance sheet an important area to review alongside any growth story.

Dig Deeper

For the full picture including more risks and rewards, check out the complete Etsy analysis.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.