Crocs to Acquire Competitor in $2.5 Billion Deal

The deal is expected to close during the first quarter of 2022

Digital Content Manager
Dec 23, 2021 at 9:02 AM
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The shares of Crocs, Inc. (NASDAQ:CROX) are down 0.6% at $139 this morning, amid news the foam footwear company will acquire privately owned shoe brand Heydude in a $2.5 billion cash-and-stock deal. Crocs will issue $2.05 billion in cash and $450 million in stock to Heydude's Chief Executive and founder Alessandro Rosano. The deal is expected to close during the first quarter of 2022.

CROX has seen plenty of upside in 2021, with the 100-day moving average helping to guide the stock to a record high of $183.88 on Nov. 15. The rally stopped short here, however, and the equity has spent most of the month in a nosedive. However, the 200-day moving average captured most of this pullback and could provide a launchpad for the shares, which now sport a 39% year-to-date lead. 

Analysts have been upbeat on CROX, with five of the seven in coverage calling it a "strong buy," with nary a sell to be seen. Plus, the 12-month consensus price target of $193.88 is a 38.7% premium to last night's close. 

Options traders, on the other hand, have been much more pessimistic. This is per the stock's 10-day put/call volume ratio of 1.14 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which stands higher than 93% of readings from the past 12 months. This suggests these traders are picking up long puts at a much quicker-than-usual pace. 

 

 

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