StockNews.com Downgrades eBay (NASDAQ:EBAY) to Hold

StockNews.com downgraded shares of eBay (NASDAQ:EBAY) from a buy rating to a hold rating in a report released on Wednesday morning.

Other analysts have also recently issued reports about the stock. Wells Fargo & Company reduced their target price on shares of eBay from $46.00 to $45.00 and set an equal weight rating for the company in a research note on Wednesday, January 24th. Susquehanna upped their target price on shares of eBay from $43.00 to $52.00 and gave the company a neutral rating in a research note on Thursday, February 29th. Piper Sandler increased their price objective on shares of eBay from $50.00 to $52.00 and gave the company an overweight rating in a research note on Wednesday, February 28th. Barclays increased their target price on shares of eBay from $55.00 to $61.00 and gave the stock an overweight rating in a research report on Wednesday, February 28th. Finally, The Goldman Sachs Group began coverage on shares of eBay in a research report on Wednesday, January 10th. They set a sell rating and a $38.00 target price for the company. Two analysts have rated the stock with a sell rating, eleven have given a hold rating and five have assigned a buy rating to the company. Based on data from MarketBeat, the stock has a consensus rating of Hold and a consensus price target of $48.84.

eBay Stock Performance

Shares of EBAY opened at $52.78 on Wednesday. The firm’s 50 day moving average is $46.18 and its 200-day moving average is $43.39. The stock has a market capitalization of $27.34 billion, a P/E ratio of 10.11, a P/E/G ratio of 2.12 and a beta of 1.31. The company has a debt-to-equity ratio of 1.09, a current ratio of 2.44 and a quick ratio of 2.44. eBay has a 12-month low of $37.17 and a 12-month high of $52.93.

eBay (NASDAQ:EBAY) last released its earnings results on Tuesday, February 27th. The e-commerce company reported $1.07 earnings per share for the quarter, topping the consensus estimate of $1.03 by $0.04. eBay had a net margin of 27.36% and a return on equity of 29.16%. The business had revenue of $2.60 billion for the quarter, compared to the consensus estimate of $2.51 billion. During the same period last year, the firm posted $0.87 earnings per share. The firm’s quarterly revenue was up 3.6% compared to the same quarter last year. Equities research analysts anticipate that eBay will post 3.64 EPS for the current fiscal year.

eBay Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Monday, March 25th. Investors of record on Monday, March 11th were paid a $0.27 dividend. The ex-dividend date of this dividend was Friday, March 8th. This is a boost from eBay’s previous quarterly dividend of $0.25. This represents a $1.08 annualized dividend and a dividend yield of 2.05%. eBay’s dividend payout ratio (DPR) is currently 20.69%.

eBay declared that its board has approved a share buyback program on Tuesday, February 27th that authorizes the company to buyback $2.00 billion in shares. This buyback authorization authorizes the e-commerce company to purchase up to 8.1% of its shares through open market purchases. Shares buyback programs are usually an indication that the company’s board of directors believes its stock is undervalued.

Insider Activity

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

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of EBAY. CVA Family Office LLC acquired a new position in eBay in the fourth quarter valued at about $25,000. SkyView Investment Advisors LLC acquired a new position in shares of eBay in the first quarter valued at approximately $27,000. Union Savings Bank acquired a new position in shares of eBay in the second quarter valued at approximately $28,000. Almanack Investment Partners LLC. bought a new stake in eBay in the third quarter valued at approximately $28,000. Finally, Stonebridge Capital Advisors LLC bought a new stake in eBay in the fourth quarter valued at approximately $29,000. Institutional investors and hedge funds own 87.48% of the company’s stock.

About eBay

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.