Etsy just purchased the company in a $217 million cash deal
E-tail heavyweight Etsy Inc (NASDAQ:ETSY) is expanding its acquisitions even further, after acquiring Gen-Z favorite Depop earlier in the month. This time, Etsy is buying Elo7 -- a Brazilian online marketplace for handmade goods -- for $217 million in cash. The company will continue to be headquartered in São Paulo, and operate under its existing leadership team.
ETSY is up 1.3% at $187.12 at last check. Late last week, the stock closed its May bear gap, and is now headed for its ninth-straight win. The stock also looks like it might be able to take out its 100-day moving average, which has acted as an area of pressure since April. Plus, year-over-year, it sports an impressive 82.5% lead.
Analysts are optimistic on the e-tailer, with 12 of the 14 calling it a "strong buy," Plus, the 12-month consensus price target of $223.31 is a 20.8% premium to last night's close.
An unwinding of shorts could put additional wind at the equity's back. Short interest rose 9% in the last two reporting periods, and now represents 5.7% of the stock's available float, or 2.3 days at its average daily pace of trading.