Etsy Inc yesterday evening reported second-quarter earnings of 51 cents per share -- much higher than analysts' estimates of 31 cents per share -- in addition to a revenue beat. As a result, the equity has attracted no less than five subsequent price-target hikes, including one from Jefferies to $125 from $115.
Analysts are mostly optimistic towards Etsy stock, with 12 of the 20 in question rating it a "buy" or better. Shorts have started to hit the exits, too, with short interest down 7.5% in the most recent period. However, the 16.11 million shares sold short still account for 12.8% of ETSY's available float.
A shift in the options pits could keep recent tailwinds blowing for the security. This is per ETSY's Schaeffer's put/call open interest ratio (SOIR) of 1.89, which is higher than 98% of annual readings, suggesting these short-term options traders have rarely been more put-biased.
It's also worth noting the equity's Volatility Scorecard (VS) sits at a 88 out of 100. This means ETSY has exceeded option traders' volatility expectations over the past year -- a good thing for options buyers.
Jefferies hiked the security's price target to $125 from $115.