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

eBay Inc. (NASDAQ:EBAY) shares gapped down prior to trading on Thursday after Morgan Stanley lowered their price target on the stock from $62.00 to $61.00. The stock had previously closed at $51.06, but opened at $49.32. Morgan Stanley currently has an overweight rating on the stock. eBay shares last traded at $49.91, with a volume of 2,038,897 shares.

Other research analysts have also issued reports about the stock. Truist Financial increased their price target on shares of eBay from $47.00 to $48.00 and gave the stock a “hold” rating in a research note on Thursday, February 29th. Deutsche Bank Aktiengesellschaft upped their price target on eBay from $55.00 to $58.00 and gave the stock a “buy” rating in a research note on Wednesday, April 10th. Piper Sandler raised their price target on eBay from $50.00 to $52.00 and gave the company an “overweight” rating in a report on Wednesday, February 28th. UBS Group lifted their price target on eBay from $46.00 to $47.00 and gave the stock a “neutral” rating in a research report on Wednesday, February 28th. Finally, Benchmark reissued a “buy” rating and set a $58.00 price objective on shares of eBay in a research report on Thursday. One analyst has rated the stock with a sell rating, ten have assigned a hold rating and eight have given a buy rating to the company. Based on data from MarketBeat.com, eBay has an average rating of “Hold” and a consensus target price of $51.35.

Insider Buying and Selling

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

Hedge Funds Weigh In On eBay

Institutional investors have recently made changes to their positions in the business. CVA Family Office LLC purchased a new position in eBay during the fourth quarter valued at $25,000. Jones Financial Companies Lllp raised its stake in shares of eBay by 73.5% in the fourth quarter. Jones Financial Companies Lllp now owns 732 shares of the e-commerce company’s stock worth $32,000 after buying an additional 310 shares during the period. American National Bank raised its stake in shares of eBay by 200.0% in the first quarter. American National Bank now owns 600 shares of the e-commerce company’s stock worth $32,000 after buying an additional 400 shares during the period. First Command Advisory Services Inc. purchased a new position in shares of eBay during the 3rd quarter valued at about $46,000. Finally, Riverview Trust Co bought a new position in shares of eBay during the 1st quarter valued at approximately $48,000. Institutional investors own 87.48% of the company’s stock.

eBay Trading Down 3.0 %

The stock’s 50-day simple moving average is $50.60 and its two-hundred day simple moving average is $44.74. The company has a debt-to-equity ratio of 1.09, a current ratio of 2.44 and a quick ratio of 2.44. The firm has a market capitalization of $25.08 billion, a P/E ratio of 9.50, a price-to-earnings-growth ratio of 2.05 and a beta of 1.31.

eBay (NASDAQ:EBAY) last issued its earnings results on Wednesday, May 1st. The e-commerce company reported $1.25 earnings per share for the quarter, topping the consensus estimate of $1.20 by $0.05. eBay had a net margin of 27.36% and a return on equity of 29.16%. The company had revenue of $2.56 billion during the quarter, compared to the consensus estimate of $2.53 billion. During the same quarter in the prior year, the firm posted $0.87 EPS. eBay’s quarterly revenue was up 1.8% compared to the same quarter last year. Equities research analysts expect that eBay Inc. will post 3.75 EPS for the current year.

eBay Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, June 14th. Investors of record on Friday, May 31st will be paid a dividend of $0.27 per share. This represents a $1.08 annualized dividend and a yield of 2.18%. eBay’s dividend payout ratio (DPR) is presently 20.69%.

eBay declared that its board has authorized 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 repurchase up to 8.1% of its stock through open market purchases. Stock repurchase programs are often a sign that the company’s board of directors 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.