Cathie Wood Stock Portfolio: 5 Newest Stock Picks This Year

4. Etsy, Inc. (NASDAQ:ETSY)

Number of Hedge Fund Holders: 47

Based on Cathie Wood’s SEC 13F filings, the hedge fund owned 353,421 stakes in Etsy, Inc. (NASDAQ:ETSY) worth $72.7 million as of August 5, 2021. This represents 0.13% of the total holdings of ARK Investment Management.

On September 28, Loop Capital analyst Laura Champine kept a Buy rating on Etsy, Inc. (NASDAQ:ETSY) and increased her price target to $245 from $220, noting the company’s recent acquisitions in the United Kingdom and Brazil as a smart growth move into international markets.

In the second quarter of 2021, Etsy, Inc. (NASDAQ:ETSY) reported an EPS of $0.87, beating estimates by $0.13. The company’s second-quarter revenue was $528.9 million, an increase of 23.4% year over year, and beat revenue estimates by $3.2 million. The company recorded a 14.2% year-over-year increase in gross merchandise sales (GMS) to $3.04 billion. The stock has gained 27%, year to date.

At the end of the second quarter of 2021, 47 hedge funds in the database of Insider Monkey held stakes worth $1.73 billion in Etsy, Inc. (NASDAQ:ETSY), down from 53 in the previous quarter worth $1.64 billion.

In its Q1 2021 investor letter, Polen Capital mentioned Etsy, Inc. (NASDAQ:ETSY), and shared their insights on the company. Here is what the fund said: 

“Etsy continued to be a top contributor in the Portfolio during the first quarter. Etsy experienced record levels of demand in 2020. Throughout the beginning of this year, the business has continued to see accelerated growth trends. The company’s recently announced fourth-quarter results provided numerous data points that highlight Etsy’s success in both broadening and deepening the relationship it has with buyers and sellers on its platform. In fact, Etsy now stands as the fourth largest e-commerce site in the U.S. Repeat buyers have grown nearly 100% year-over-year, despite mask sales, which grew rapidly at the onset of the pandemic, shrinking to less than 5% of sales.

We continue to believe Etsy remains in the early stages of growing out its platform.

We remain confident in its ability to compound its value for shareholders at an attractive rate going forward.”