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

eBay Inc. (NASDAQ:EBAY) 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 traded.

Several other brokerages have also issued reports on EBAY. UBS Group increased their target price on shares of eBay from $46.00 to $47.00 and gave the stock a “neutral” rating in a research note on Wednesday, February 28th. Mizuho raised their target price on eBay from $44.00 to $49.00 and gave the company a “neutral” rating in a research note on Thursday. The Goldman Sachs Group began coverage on eBay in a research note on Wednesday, January 10th. They set a “sell” rating and a $38.00 price target on the stock. Piper Sandler raised their price objective on eBay from $50.00 to $52.00 and gave the company an “overweight” rating in a research note on Wednesday, February 28th. Finally, Susquehanna upped their target price on eBay from $43.00 to $52.00 and gave the stock a “neutral” rating in a research report on Thursday, February 29th. One investment analyst has rated the stock with a sell rating, ten have assigned a hold rating and eight have issued a buy rating to the company. According to MarketBeat, the company has a consensus rating of “Hold” and a consensus price target of $51.35.

Insider Activity

In related news, SVP Edward O. Garcia sold 1,165 shares of eBay stock in a transaction dated Tuesday, February 20th. The stock was 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 approximately $1,372,140.64. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Insiders own 0.21% of the company’s stock.

Institutional Investors Weigh In On eBay

A number of hedge funds and other institutional investors have recently bought and sold shares of EBAY. CVA Family Office LLC bought a new position in eBay in the 4th quarter worth about $25,000. American National Bank raised its holdings in shares of 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 acquiring an additional 400 shares in the last quarter. Jones Financial Companies Lllp boosted its position in shares of eBay by 73.5% during 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 last quarter. Riverview Trust Co bought a new stake in shares of eBay during the 1st quarter valued at about $48,000. Finally, First Command Advisory Services Inc. bought a new position in shares of eBay in the third quarter worth approximately $46,000. Institutional investors own 87.48% of the company’s stock.

eBay Price Performance

The firm has a market capitalization of $25.08 billion, a PE ratio of 9.50, a P/E/G ratio of 2.05 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. The business’s 50 day moving average is $50.60 and its two-hundred day moving average is $44.74.

eBay (NASDAQ:EBAY) last posted its quarterly earnings data on Wednesday, May 1st. The e-commerce company reported $1.25 earnings per share for the quarter, beating 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 firm had revenue of $2.56 billion for the quarter, compared to analysts’ expectations of $2.53 billion. During the same quarter last year, the company posted $0.87 EPS. The business’s quarterly revenue was up 1.8% on a year-over-year basis. As a group, research analysts anticipate 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 issued a dividend of $0.27 per share. This represents a $1.08 annualized dividend and a dividend yield of 2.18%. eBay’s dividend payout ratio is currently 20.69%.

eBay announced that its board has initiated a stock repurchase plan on Tuesday, February 27th that allows the company to buyback $2.00 billion in shares. This buyback authorization allows the e-commerce company to repurchase up to 8.1% of its stock through open market purchases. Stock buyback plans are typically an indication that the company’s leadership believes its stock is undervalued.

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.