SCHEDULE: Nomura Holdings Discloses 5.1% Stake in Etsy

Nomura Holdings Inc. and its subsidiaries have disclosed a 5.1% passive beneficial ownership stake in Etsy Inc., primarily through common stock and call options.

Summary

• Nomura Holdings Inc. and its subsidiaries, Nomura Global Financial Products Inc. and Nomura Securities International, Inc., reported beneficial ownership of 5,091,269 shares of Etsy Inc. common stock.
• This represents 5.1% of Etsy's outstanding common stock, based on 99,608,000 shares as of June 30, 2025, as reported in Etsy's quarterly report on Form 10-Q.
• The ownership includes 4,500,000 shares underlying call options held by Nomura Global Financial Products, Inc. that are exercisable within 60 days.
• Additionally, Nomura Securities International, Inc. holds 91,269 shares of common stock and 500,000 shares underlying call options exercisable within 60 days.
• The filing states the securities were acquired and are held in the ordinary course of business, not for the purpose of changing or influencing control of Etsy.

Sentiment

Score: 7

Explanation: The filing indicates a significant passive investment by a major financial institution in Etsy, suggesting confidence in the company's value. The nature of the filing (13G) confirms a non-activist, ordinary course of business investment.

Positives

• Significant institutional investment by Nomura Holdings Inc. in Etsy, indicating confidence in the company's prospects.
• The investment is stated to be for ordinary course of business, suggesting a passive, long-term interest rather than an activist stance.

Future Outlook

NA

Management Comments

• 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 reflects a significant passive investment by a major global financial institution, Nomura Holdings, into a prominent e-commerce platform, Etsy. Such investments by large financial entities often signal a belief in the long-term value and growth potential of the target company within its industry.

Comparison to Industry Standards

• Nomura Holdings Inc.'s 5.1% beneficial ownership stake in Etsy Inc. exceeds the 5% threshold that triggers a Schedule 13G filing, indicating a material, albeit passive, investment.
• This is a common practice for institutional investors like Nomura, which manages significant assets and often takes positions in publicly traded companies for investment purposes, aligning with standard investment portfolio diversification and long-term value strategies.

Stakeholder Impact

• Shareholders: May view the institutional investment as a positive signal of confidence in Etsy's stock and its long-term prospects.
• Management: Provides validation of the company's strategy and market position through significant institutional backing.

Key Dates

Recommendation

The filing indicates a significant passive investment by a reputable financial institution, Nomura Holdings, in Etsy. While this signals institutional confidence and could be seen as a positive endorsement, a Schedule 13G filing typically represents a passive investment for ordinary course of business, not an activist position or a fundamental change in the company's operations. Therefore, it reinforces a 'hold' recommendation for existing investors, as it doesn't present new information warranting a 'buy' or 'sell' based solely on this ownership disclosure, but rather confirms a degree of institutional support.

Keywords

Etsy, Nomura Holdings, beneficial ownership, Schedule 13G, common stock, call options, institutional investment, e-commerce