eBay Inc. (NASDAQ: EBAY): Hunting Genuine Value In Market Debris


    Columbia Management Investment Ad.. recently announced the acquisition of new stake in eBay Inc. (NASDAQ:EBAY). The institutional investor has increased its shareholding in the Consumer Cyclical company by 34.17% to 17.74 million shares with purchase of 4.52 million shares. This fresh investment now brings its stake to 2.54% valued currently at $980.78 million. In addition, Fidelity Management & Research Co.. raised its holdings by 11.15 million to 17.28 million shares. And Renaissance Technologies LLC has lifted its position by 6.32% or 0.79 million shares – to 13.28 million shares.

    With over 6.78 million eBay Inc. (EBAY) shares trading Friday and a closing price of $58.21 on the day, the dollar volume was approximately $394.75 million. The shares have shown a positive weekly performance of 3.40% and its price on 08/21/20 gained nearly 0.95%. Currently, there are 703.00M common shares owned by the public and among those 664.62M shares have been available to trade.

    An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 34 analysts who have offered their price forecasts for EBAY have a consensus price objective of $61.31. The analysts have set the share’s price value over the next 12 months at a high of $82.00 and a low of $49.00 should the stock experience a downside. Incidentally, analysts’ outlook for the eBay Inc. stock is 2.50 for the next 12 months. The average price target is 3.29% above its last price level and an upside to the estimated low will see the stock lose -18.8% over that period. But an upside of 29.01% will see the stock hit the forecast high price target while mean target price for the stock is $60.00.

    Insiders at the company have transacted a total of 360 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 195 of these insider trades were purchases, accounting for 1,196,721 shares. Insider sales of the common stock occurred on 165 occasions, with total insider shares sold totaling 13,332,910 shares.

    The top 3 mutual fund holders in eBay Inc. are Vanguard Total Stock Market Index, Vanguard 500 Index Fund, and Government Pension Fund – Global. Vanguard Total Stock Market Index owns 18.98 million shares of the company’s stock, all valued at over $1.05 billion. The company sold 43969.0 shares recently to bring their total holdings to about 2.71% of the shares outstanding. Vanguard 500 Index Fund sold 82698.0 shares to see its total holdings shrink to 13.62 million shares valued at over $752.97 million and representing 1.95% of the shares outstanding. Government Pension Fund – Global bought 0.28 million shares to bring its total holdings to over 8.68 million shares at a value of $480.0 million. Government Pension Fund – Global now owns shares totaling to 1.24% of the shares outstanding.

    Shares of eBay Inc. (NASDAQ: EBAY) opened at $57.86, up $0.2 from a prior closing price of $57.66. However, the script later closed the day at $58.21, up 0.95%. The company’s stock has a 5-day price change of 3.40% and 33.96% over the past three months. EBAY shares are trading 61.19% year to date (YTD), with the 12-month market performance up to 45.51% higher. It has a 12-month low price of $26.02 and touched a high of $61.06 over the same period. Currently, 6.78 million shares have been traded, compared to an average intraday trading volume of 10.68 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 3.98%, 6.82%, and 41.31% respectively.

    Institutional ownership of eBay Inc. (NASDAQ: EBAY) shares accounts for 94.40% of the company’s 703.00M shares outstanding. Mutual fund holders own 43.16%, while other institutional holders and individual stakeholders account for 51.16% and 10.24% respectively.

    It has a market capitalization of $40.36B and a beta (3y monthly) value of 1.41. The stock’s trailing 12-month PE ratio is 21.27, while the earnings-per-share (ttm) stands at $2.74. The company has a PEG of 1.34 and a Quick Ratio of 1.60 with the debt-to-equity ratio at 2.99. Price movements for the stock have been influenced by the stock’s volatility, which stands at 2.11% over the week and 2.57% over the month.

    Analysts forecast that eBay Inc. (EBAY) will achieve an EPS of $0.86 for the current quarter, $0.88 for the next quarter and $3.96 for 2021. The lowest estimate earnings-per-share for the quarter is $0.82 while analysts give the company a high EPS estimate of $0.9. Comparatively, EPS for the current quarter was $0.67 a year ago. Earnings per share for the fiscal year are expected to increase by 0.50%, and 10.41% over the next financial year. EPS should shrink at an annualized rate of 15.92% over the next five years, compared to 38.10% over the past 5-year period.

    If you are looking to buy this stock, then you may note that the average analyst recommendation by 34 brokerage firm advisors rate eBay Inc. (EBAY) as a “Moderate Buy” at a consensus score of 2.50. Specifically, 11 Wall Street analysts polled rate the stock as a buy, while 22 of the 34 advise that investors “hold,” and 0 rated it as a “Sell.”

    Looking at the support for the EBAY, a number of firms have released research notes about the stock. CFRA stated their Hold rating for the stock in a research note on August 20, 2020, with the firm’s price target at. Deutsche Bank coverage for the eBay Inc. (EBAY) stock in a research note released on June 26, 2020 offered a Buy rating with a price target of $57. Jefferies was of a view on June 10, 2020 that the stock is Hold, while Wells Fargo gave the stock Equal Weight rating on June 09, 2020, issuing a price target of $50. BMO Capital Markets on their part issued Market Perform rating on June 05, 2020.


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