eBay (NASDAQ:EBAY) Shares Gap Down on Analyst Downgrade

eBay Inc. (NASDAQ:EBAY)’s share price gapped down prior to trading on Thursday after StockNews.com downgraded the stock from a buy rating to a hold rating. The stock had previously closed at $51.06, but opened at $49.32. eBay shares last traded at $49.91, with a volume of 2,038,897 shares trading hands.

A number of other analysts also recently commented on the stock. Mizuho increased their price objective on shares of eBay from $44.00 to $49.00 and gave the company a “neutral” rating in a report on Thursday. Piper Sandler lifted their price target on eBay from $50.00 to $52.00 and gave the stock an “overweight” rating in a report on Wednesday, February 28th. Benchmark reissued a “buy” rating and issued a $58.00 price objective on shares of eBay in a report on Thursday. Deutsche Bank Aktiengesellschaft lifted their target price on shares of eBay from $55.00 to $58.00 and gave the stock a “buy” rating in a research note on Wednesday, April 10th. Finally, Truist Financial lifted their target price on eBay from $47.00 to $48.00 and gave the company a “hold” rating in a research report on Thursday, February 29th. One analyst has rated the stock with a sell rating, eleven have issued a hold rating and seven have assigned a buy rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average target price of $51.35.

Insider Buying and Selling at eBay

In other news, SVP Edward O. Garcia sold 1,165 shares of the firm’s stock in a transaction on Tuesday, February 20th. The shares were sold at an average price of $43.03, for a total value of $50,129.95. Following the sale, the senior vice president now directly owns 31,888 shares in the company, valued at approximately $1,372,140.64. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. 0.21% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On eBay

Large investors have recently bought and sold shares of the stock. CVA Family Office LLC acquired a new position in eBay during the fourth quarter worth approximately $25,000. Jones Financial Companies Lllp increased its holdings in shares of eBay by 73.5% in the 4th quarter. Jones Financial Companies Lllp now owns 732 shares of the e-commerce company’s stock valued at $32,000 after acquiring an additional 310 shares during the period. American National Bank raised its position in eBay by 200.0% in the 1st quarter. American National Bank now owns 600 shares of the e-commerce company’s stock valued at $32,000 after purchasing an additional 400 shares during the last quarter. First Command Advisory Services Inc. acquired a new stake in eBay during the 3rd quarter worth $46,000. Finally, Riverview Trust Co purchased a new position in eBay during the 1st quarter worth $48,000. Institutional investors and hedge funds own 87.48% of the company’s stock.

eBay Price Performance

The company’s 50-day simple moving average is $50.70 and its 200-day simple moving average is $44.77. The company has a debt-to-equity ratio of 1.09, a quick ratio of 2.44 and a current ratio of 2.44. The company has a market capitalization of $25.14 billion, a PE ratio of 9.89, a P/E/G ratio of 2.03 and a beta of 1.31.

eBay (NASDAQ:EBAY) last issued its quarterly earnings results on Wednesday, May 1st. The e-commerce company reported $1.25 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.20 by $0.05. eBay had a return on equity of 29.63% and a net margin of 25.97%. The firm had revenue of $2.56 billion for the quarter, compared to analysts’ expectations of $2.53 billion. During the same quarter in the previous year, the firm posted $0.87 EPS. The firm’s revenue for the quarter was up 1.8% on a year-over-year basis. As a group, sell-side analysts anticipate that eBay Inc. will post 3.75 earnings per share for the current year.

eBay Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, June 14th. Investors of record on Friday, May 31st will be issued a dividend of $0.27 per share. The ex-dividend date is Friday, May 31st. This represents a $1.08 annualized dividend and a yield of 2.18%. eBay’s dividend payout ratio is currently 21.51%.

eBay declared that its board has initiated a stock buyback program on Tuesday, February 27th that allows the company to repurchase $2.00 billion in shares. This repurchase authorization allows the e-commerce company to buy up to 8.1% of its stock through open market purchases. Stock repurchase programs are usually a sign that the company’s board believes its stock is undervalued.

eBay Company Profile

eBay Inc, together with its subsidiaries, operates marketplace platforms that connect buyers and sellers in the United States, the United Kingdom, China, Germany, and internationally. The company's marketplace platform includes its online marketplace at ebay.com, off-platform businesses, and the eBay suite of mobile apps.