(Updated - February 1, 2024 9:38 AM EST)
Etsy (NASDAQ:ETSY) shares surged early on Thursday after the company announced it has appointed Marc Steinberg, partner at activist firm Elliott Investment Management, to its board, while Bloomberg reported that Elliott has built a significant position in the online marketplace company.
Etsy shares are up more than 10% at well over $73 per share at the time of writing. It closed Wednesday's session at $66.56.
Bloomberg, citing sources, said Elliott has built a 13% stake in Etsy, making it the company's largest shareholder.
Steinberg will join the Etsy board effective February 5. "Marc brings unique and valuable experience as an investor and board member in the technology, digital media, and e-commerce industries," said Josh Silverman, Etsy's Chief Executive Officer. "We've gotten to know Marc, and appreciate his passion for Etsy's mission and excitement about the future growth opportunities for all of our stakeholders."
In his role at Elliott, Steinberg is responsible for public and private equity investments across various industries, including the technology, media, and telecommunications sectors. Etsy said Steinberg will also join the board's audit committee.
Reacting to the news, analysts at Evercore ISI, who have an Outperform rating and $95 per share price target on Etsy, said they view Elliott’s involvement with Etsy as "amicable."
"We also believe it was a joint decision, with Etsy welcoming Marc to the Board given his experience, background, and industry knowledge," the analysts added. "This is unlike some of the other relationships Elliott may have had with other public companies, in our view."
Furthermore, Evercore ISI thinks Steinberg will most likely be supportive of Etsy’s long-term strategy and the company’s management team.
"We don’t believe there is a concrete agenda to make dramatic, imminent changes. We also don’t believe there is a settlement or a standstill agreement," concluded the analysts at Evercore ISI.