eBay Inc. (NASDAQ:EBAY) Plans Quarterly Dividend of $0.31

Key Points

• eBay declared a quarterly dividend of $0.31 per share, payable December 18 to shareholders of record December 4. The dividend annualizes to $1.24 per share and yields approximately 1.1%.
• The dividend appears well covered, with a 21.5% payout ratio, seven consecutive years of annual increases, and an expected future payout ratio of 23.1%.
• eBay’s latest quarterly results exceeded expectations: earnings were $1.51 per share versus $1.41 expected, while revenue reached $3.21 billion, up 13.7% year over year.

eBay Inc. (NASDAQ:EBAY - Get Free Report) announced a quarterly dividend on Wednesday, October 28th. Shareholders of record on Friday, December 4th will be paid a dividend of $0.31 per share by the e-commerce company on Friday, December 18th. This represents a $1.24 annualized dividend and a yield of 1.1%. The ex-dividend date is Friday, December 4th.

eBay has increased its dividend payment by an average of 0.1% annually over the last three years and has raised its dividend annually for the last 7 consecutive years. eBay has a dividend payout ratio of 21.5% indicating that its dividend is sufficiently covered by earnings. Analysts expect eBay to earn $5.36 per share next year, which means the company should continue to be able to cover its $1.24 annual dividend with an expected future payout ratio of 23.1%.

eBay Stock Up 0.2%

EBAY stock opened at $118.02 on Thursday. eBay has a 52 week low of $78.03 and a 52 week high of $124.59. The firm has a 50-day simple moving average of $110.11 and a 200-day simple moving average of $103.57. The company has a quick ratio of 1.02, a current ratio of 1.02 and a debt-to-equity ratio of 1.10. The stock has a market capitalization of $52.52 billion, a P/E ratio of 24.43, a P/E/G ratio of 3.04 and a beta of 1.33.

eBay (NASDAQ:EBAY - Get Free Report) last posted its quarterly earnings results on Wednesday, October 28th. The e-commerce company reported $1.51 earnings per share for the quarter, topping the consensus estimate of $1.41 by $0.10. The firm had revenue of $3.21 billion for the quarter, compared to the consensus estimate of $3.12 billion. eBay had a net margin of 18.50% and a return on equity of 47.88%. The company's revenue for the quarter was up 13.7% on a year-over-year basis. During the same period last year, the firm posted $1.36 earnings per share. Equities analysts forecast that eBay will post 4.90 earnings per share for the current fiscal year.

Insider Activity

In related news, SVP Jordan Sweetnam sold 1,014 shares of the firm's stock in a transaction that occurred on Tuesday, August 18th. The stock was sold at an average price of $101.39, for a total value of $102,809.46. Following the completion of the transaction, the senior vice president directly owned 35,546 shares of the company's stock, valued at $3,604,008.94. This trade represents a 2.77% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Jamie Iannone sold 11,110 shares of eBay stock in a transaction dated Wednesday, August 5th. The stock was sold at an average price of $108.55, for a total transaction of $1,205,990.50. Following the transaction, the chief executive officer owned 253,211 shares of the company's stock, valued at approximately $27,486,054.05. The trade was a 4.20% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 34,344 shares of company stock worth $3,635,567 over the last 90 days. 0.67% of the stock is currently owned by company insiders.

Institutional Trading of eBay

A number of institutional investors have recently modified their holdings of the company. Columbus Macro LLC increased its position in shares of eBay by 2.5% during the third quarter. Columbus Macro LLC now owns 3,838 shares of the e-commerce company's stock worth $407,000 after acquiring an additional 93 shares during the last quarter. Conning Inc. boosted its holdings in eBay by 5.3% in the third quarter. Conning Inc. now owns 2,083 shares of the e-commerce company's stock worth $221,000 after purchasing an additional 104 shares during the period. MGO One Seven LLC boosted its holdings in shares of eBay by 1.3% in the 3rd quarter. MGO One Seven LLC now owns 8,532 shares of the e-commerce company's stock valued at $905,000 after buying an additional 109 shares during the period. Spire Wealth Management grew its holdings in shares of eBay by 29.7% during the second quarter. Spire Wealth Management now owns 489 shares of the e-commerce company's stock valued at $55,000 after purchasing an additional 112 shares during the last quarter. Finally, B. Riley Wealth Advisors Inc. boosted its position in eBay by 4.6% during the 2nd quarter. B. Riley Wealth Advisors Inc. now owns 2,818 shares of the e-commerce company's stock valued at $312,000 after purchasing an additional 125 shares during the period. Hedge funds and other institutional investors own 87.48% of the company's stock.

eBay Company Profile

eBay Inc operates a global online marketplace that connects buyers and sellers. Through its platform, individuals, small businesses and larger retailers can list and purchase new, used and refurbished merchandise across categories such as electronics, apparel, collectibles, automotive parts and accessories, home goods and industrial products. Transactions may take place through auctions or fixed-price listings, with payments, shipping and other seller and buyer services supporting the marketplace experience.

Founded in 1995 as AuctionWeb by Pierre Omidyar, eBay has grown from an online auction site into a broad e-commerce platform.

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