Bearish Sentiment Grows Among Investors for Etsy Options

Bearish sentiment rises among investors in Etsy as only 31% show bullish expectations, compared to 50% with bearish. Analysts give mixed ratings and a range of price targets. Investors should remain cautious amidst these trends.

Date: 03-03-2025

AI Rating: 4

Market Overview: Recent options trading data indicates a noticeable bearish sentiment towards Etsy (NASDAQ: ETSY), with 50% of trades reflecting bearish expectations compared to just 31% bullish. The volume and open interest in options suggest significant investor caution.

Options Activity: In total, there have been 16 trades identified, showing a combination of 4 puts worth $121,863 and 12 calls totaling $844,905. The distribution indicates heavier trading on the calls side, though the sentiment remains bearish.

Price Target Analysis: Investors are targeting a price range for Etsy between $45.0 and $95.0 over the recent three months. With the current stock price at $49.97—down by -2.39%—it suggests investors are betting on recovery without strong conviction.

Analyst Sentiments: Analyst opinions are divided, with target prices ranging from $43 to $76. Notably, Citigroup maintains a Neutral rating with a target of $53, while Morgan Stanley reports an Underweight rating at $44. This uncertainty may contribute to the bearish sentiment in options trading.

Investor Implications: With a current trading volume of 1,369,829 and the RSI suggesting the stock may be approaching oversold territory, investors might want to factor these signals into their trading strategies. Continuous monitoring of upcoming earnings reports and trading volumes will be crucial to gauge potential recovery.

Stocks: ETSY