SCHEDULE 13G: Pacer Funds and Affiliates Disclose 5.28% Passive Stake in Etsy Inc.

Pacer Advisors, Inc. and its affiliated ETFs, along with Joe M. Thomson, have disclosed a passive beneficial ownership of 5.28% in Etsy Inc. common stock as of December 31, 2024.

Summary

• Pacer Advisors, Inc., its affiliated Pacer Funds Trust ETFs (Pacer US Small Cap Cash Cows ETF, Pacer US Cash Cows 100 ETF, Pacer US Large Cap Cash Cows Growth Leaders ETF, and Pacer US Small Cap Cash Cows Growth Leaders ETF), and Joe M. Thomson have jointly filed a Schedule 13G.
• The filing indicates a beneficial ownership of 5,734,785 shares of Etsy Inc. common stock.
• This aggregate ownership represents 5.28% of Etsy's outstanding common stock.
• The percentage is calculated based on 108,540,000 shares of common stock issued and outstanding as of December 31, 2024, as reported by Etsy.
• The shares are held in the ordinary course of business and not for the purpose of changing or influencing control of Etsy.
• Pacer Advisors, Inc. serves as the investment adviser to the Funds and maintains discretionary investment and voting authority over the shares.
• Joe M. Thomson, as the majority stockholder of Pacer Advisors, Inc., may be deemed a beneficial owner.

Sentiment

Score: 6

Explanation: Slightly positive. The disclosure of a significant passive stake by institutional investors can be interpreted as a vote of confidence in the company's value and long-term prospects, even if it's a routine filing.

Positives

• The disclosure of a significant passive stake by institutional investors like Pacer Funds and Pacer Advisors, Inc. can signal confidence in Etsy's long-term prospects.
• The investment is stated to be in the ordinary course of business, indicating a strategic, non-activist position.

Future Outlook

Not applicable, as this filing does not contain forward-looking statements about Etsy's business.

Management Comments

• "By signing below I certify that, to the best of my knowledge and belief, the securities referred to above were acquired and are held in the ordinary course of business and were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the issuer of the securities and were not acquired and are not held in connection with or as a participant in any transaction having that purpose or effect, other than activities solely in connection with a nomination under §§ 240.14a-11."

Industry Context

This filing indicates continued institutional interest in Etsy, an e-commerce platform specializing in handmade and vintage items. The investment by Pacer Funds, known for their "Cash Cows" strategy, suggests that Etsy may align with their criteria for companies generating strong cash flow, which could be a positive signal within the broader e-commerce and retail sectors.

Stakeholder Impact

• Shareholders: The disclosure of a significant institutional stake may be viewed positively, potentially reinforcing investor confidence in Etsy's stock.
• Management: The passive nature of the investment indicates no immediate intent to influence management or control, allowing current management to continue their strategic direction without activist pressure from this specific investor.

Key Dates

Keywords

Etsy, ETSY, Pacer Advisors, Pacer Funds, Schedule 13G, beneficial ownership, common stock, investment, e-commerce, passive investment, institutional investor