eBay (NASDAQ:EBAY) Reaches New 1-Year High - Should You Buy?

Key Points

• eBay Inc. reached a new 52-week high, trading at $97.19, showing strong market activity with over 5.6 million shares traded.
• Analysts have mixed sentiments about eBay, with ratings varying from "strong buy" to "sell," while the consensus rating remains a "Hold" with a target price of $78.19.
• In its latest earnings report, eBay exceeded expectations with $1.37 earnings per share and a revenue of $2.73 billion, reflecting a 6.1% year-over-year increase.

eBay Inc. (NASDAQ:EBAY - Get Free Report) hit a new 52-week high during mid-day trading on Wednesday . The company traded as high as $97.19 and last traded at $97.06, with a volume of 5688721 shares. The stock had previously closed at $95.30.

Analyst Upgrades and Downgrades

EBAY has been the subject of a number of recent analyst reports. Argus downgraded shares of eBay from a "strong-buy" rating to a "hold" rating in a report on Thursday, August 7th. Benchmark upped their price target on eBay from $78.00 to $100.00 and gave the stock a "buy" rating in a research note on Thursday, July 31st. Barclays reaffirmed an "overweight" rating and issued a $92.00 price objective (up from $77.00) on shares of eBay in a research note on Thursday, July 31st. Susquehanna boosted their price objective on eBay from $70.00 to $95.00 and gave the company a "neutral" rating in a report on Friday, August 1st. Finally, Stifel Nicolaus increased their target price on eBay from $62.00 to $68.00 and gave the stock a "hold" rating in a research note on Tuesday, July 29th. Two research analysts have rated the stock with a sell rating, twenty-one have given a hold rating, ten have assigned a buy rating and one has assigned a strong buy rating to the stock. According to MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus target price of $78.19.

eBay Trading Up 1.8%

The firm has a market capitalization of $44.36 billion, a PE ratio of 21.38, a PEG ratio of 2.30 and a beta of 1.27. The company's 50-day moving average price is $80.26 and its 200-day moving average price is $72.11. The company has a debt-to-equity ratio of 1.05, a quick ratio of 1.00 and a current ratio of 1.00.

eBay (NASDAQ:EBAY - Get Free Report) last released its quarterly earnings data on Wednesday, July 30th. The e-commerce company reported $1.37 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.30 by $0.07. eBay had a net margin of 20.86% and a return on equity of 38.97%. The business had revenue of $2.73 billion during the quarter, compared to analysts' expectations of $2.64 billion. During the same period in the previous year, the company earned $1.18 EPS. The company's revenue for the quarter was up 6.1% on a year-over-year basis. On average, sell-side analysts expect that eBay Inc. will post 3.86 earnings per share for the current year.

eBay Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, September 12th. Investors of record on Friday, August 29th will be paid a dividend of $0.29 per share. This represents a $1.16 annualized dividend and a yield of 1.2%. The ex-dividend date is Friday, August 29th. eBay's dividend payout ratio (DPR) is currently 25.55%.

Insider Activity at eBay

In related news, SVP Cornelius Boone sold 2,985 shares of eBay stock in a transaction on Friday, June 6th. The shares were sold at an average price of $78.67, for a total transaction of $234,829.95. Following the sale, the senior vice president directly owned 92,053 shares in the company, valued at $7,241,809.51. This trade represents a 3.14% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Jamie Iannone sold 10,974 shares of eBay stock in a transaction on Wednesday, July 2nd. The stock was sold at an average price of $75.75, for a total transaction of $831,280.50. Following the sale, the chief executive officer owned 306,651 shares in the company, valued at $23,228,813.25. This represents a 3.46% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 276,104 shares of company stock valued at $22,025,676 over the last quarter. 0.64% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of EBAY. Princeton Global Asset Management LLC increased its stake in eBay by 433.9% in the second quarter. Princeton Global Asset Management LLC now owns 331 shares of the e-commerce company's stock valued at $25,000 after purchasing an additional 269 shares during the period. Wealth Preservation Advisors LLC acquired a new position in shares of eBay in the first quarter valued at approximately $26,000. Orion Capital Management LLC acquired a new position in shares of eBay in the fourth quarter valued at approximately $27,000. GFG Capital LLC acquired a new position in shares of eBay in the second quarter valued at approximately $28,000. Finally, Abound Financial LLC acquired a new stake in shares of eBay in the 1st quarter worth $29,000. 87.48% of the stock is currently owned by institutional investors and hedge funds.

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.

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