Is Etsy Inc (NASDAQ:ETSY) A Good Stock To Buy?

As aggregate interest increased, key money managers have jumped into Etsy Inc (NASDAQ:ETSY) headfirst. Shellback Capital, managed by Doug Gordon, Jon Hilsabeck and Don Jabro, assembled the most valuable position in Etsy Inc (NASDAQ:ETSY). Shellback Capital had $6.2 million invested in the company at the end of the quarter. Andrew Sandler’s Sandler Capital Management also initiated a $5.9 million position during the quarter. The other funds with new positions in the stock are Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital, Peter Muller’s PDT Partners, and John Osterweis’s Osterweis Capital Management.

Let’s also examine hedge fund activity in other stocks similar to Etsy Inc (NASDAQ:ETSY). These stocks are Apollo Commercial Real Est. Finance Inc (NYSE:ARI), Cubic Corporation (NYSE:CUB), Union First Market Bankshares Corp. (NASDAQ:UBSH), and American Woodmark Corporation (NASDAQ:AMWD). This group of stocks’ market valuations resemble ETSY’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
ARI 8 9166 0
CUB 17 113374 2
UBSH 13 40675 -1
AMWD 14 134948 0

As you can see these stocks had an average of 13 hedge funds with bullish positions and the average amount invested in these stocks was $75 million. That figure was $340 million in ETSY’s case. Cubic Corporation (NYSE:CUB) is the most popular stock in this table. On the other hand Apollo Commercial Real Est. Finance Inc (NYSE:ARI) is the least popular one with only 8 bullish hedge fund positions. Compared to these stocks Etsy Inc (NASDAQ:ETSY) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.