What Happened:
Shares of online marketplace Etsy (NASDAQ: ETSY) jumped 5.07% in the morning session after analyst Edward Yruma of Piper Sandler upgraded the stock's rating from Neutral (Hold) to Overweight (Buy) and raised the price target from $135 to $140. The target price implies a 25% upside to the current price. After the initial pop the shares cooled down to $109.3, up 1% from previous close.
What is the market telling us:
Etsy's shares are very volatile and over the last year have had 49 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful but not something that would fundamentally change its perception of the business.
Etsy is down 3.69% since the beginning of the year, and at $109.3437 per share it is trading 26.2% below its 52-week high of $148.2 from February 2023. Investors who bought $1,000 worth of Etsy's shares 5 years ago would now be looking at an investment worth $3,928.7.
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