Etsy Inc (NASDAQ: ETSY) saw its shares soar Tuesday, after two private equity firms disclosed ownership in the online crafts site, requesting it consider strategic alternatives.
In separate filings with the Securities and Exchange Commission (SEC) Monday evening, TPG Group Holdings Advisors reported a 4.3% stake in Etsy, while Dragoneer Investment Group reported a 3.7% stake in the company.
The Brooklyn-based online retailer was also recently urged by activist hedge fund Black & White Capital, which owns about 2% of Etsy, to explore a potential sale.
Dragoneer, an early investor in Etsy, has worked with TPG before, including in its investment in music-streaming service Spotify.
In response to the filings, Etsy Chairman Fred Wilson said in a statement the company's board will "carefully consider all options to enhance shareholder value."
Etsy is a peer-to-peer e-commerce website focused on handmade or vintage items and supplies (vintage meaning, at least 20 years old), as well as unique factory-manufactured items. These items cover a wide range, including art, photography, clothing, jewelry, food, bath and beauty products, quilts, knick-knacks, and toys. Many sellers also sell craft supplies such as beads, wire and jewelry-making tools.
When Etsy shares more details on its review, investors should look to see if any changes to the company's strategic plans will impact their own outlook for the stock.
As of Monday's close, shares of Etsy had fallen near 4% for the year-to-date period but are up more than 31% over the past 12 months. As the close approached on Tuesday, the shares vaulted $2.53, or 22.3%, to $13.85.
