Primecap Management Co. CA Makes New Investment in eBay Inc. $EBAY

Key Points

• Primecap Management purchased 1.87 million eBay shares worth approximately $209.4 million in the second quarter, giving it a 0.42% stake. Institutional investors and hedge funds collectively own 87.48% of eBay.
• Analyst sentiment remains mixed: eBay has a consensus “Hold” rating and an average price target of $117.24, though several firms recently raised targets or initiated buy/outperform ratings.
• eBay exceeded quarterly expectations with $1.60 in adjusted EPS and $3.13 billion in revenue, up 14.8% year over year. The company also declared a quarterly dividend of $0.31 per share, representing a 1.2% yield.

Primecap Management Co. CA bought a new stake in eBay Inc. (NASDAQ:EBAY - Free Report) in the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund bought 1,874,240 shares of the e-commerce company's stock, valued at approximately $209,446,000. Primecap Management Co. CA owned approximately 0.42% of eBay at the end of the most recent quarter.

Other hedge funds and other institutional investors also recently made changes to their positions in the company. Compass Financial Management LLC bought a new stake in shares of eBay in the 2nd quarter valued at $28,000. Cedar Mountain Advisors LLC lifted its holdings in eBay by 128.9% in the first quarter. Cedar Mountain Advisors LLC now owns 277 shares of the e-commerce company's stock valued at $25,000 after buying an additional 156 shares during the period. Cassaday & Co Wealth Management LLC bought a new stake in eBay during the first quarter valued at $26,000. Abound Financial LLC bought a new stake in eBay during the fourth quarter valued at $26,000. Finally, Jessup Wealth Management Inc acquired a new stake in eBay during the 4th quarter worth about $27,000. 87.48% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

Several research firms have recently weighed in on EBAY. Rosenblatt Securities assumed coverage on eBay in a research report on Thursday, August 20th. They issued a "buy" rating and a $120.00 price objective for the company. Daiwa Securities Group raised their target price on eBay from $90.00 to $114.00 in a research note on Monday, May 11th. Susquehanna reiterated a "neutral" rating on shares of eBay in a report on Friday, August 7th. Argus raised eBay from a "hold" rating to a "buy" rating and set a $133.00 price target on the stock in a research note on Friday, August 7th. Finally, Wedbush increased their price target on eBay from $135.00 to $137.00 and gave the stock an "outperform" rating in a report on Thursday, August 20th. One analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating, seventeen have given a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average target price of $117.24.

Insider Transactions at eBay

In related news, CEO Jamie Iannone sold 11,110 shares of the company's stock in a transaction that occurred on Wednesday, August 5th. The shares were sold at an average price of $108.55, for a total value of $1,205,990.50. Following the transaction, the chief executive officer directly owned 253,211 shares in the company, valued at approximately $27,486,054.05. This represents a 4.20% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Mazen Rawashdeh sold 1,919 shares of the stock in a transaction on Wednesday, June 17th. The shares were sold at an average price of $108.51, for a total value of $208,230.69. Following the completion of the transaction, the senior vice president directly owned 32,124 shares in the company, valued at approximately $3,485,775.24. This represents a 5.64% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 37,126 shares of company stock valued at $4,087,886. 0.67% of the stock is owned by corporate insiders.

eBay Trading Down 1.0%

Shares of eBay stock opened at $106.00 on Wednesday. eBay Inc. has a 12-month low of $78.03 and a 12-month high of $119.31. The stock has a fifty day simple moving average of $110.01 and a 200 day simple moving average of $102.62. The company has a current ratio of 1.02, a quick ratio of 1.02 and a debt-to-equity ratio of 1.10. The company has a market capitalization of $47.17 billion, a P/E ratio of 21.95, a price-to-earnings-growth ratio of 2.59 and a beta of 1.37.

eBay (NASDAQ:EBAY - Get Free Report) last released its earnings results on Wednesday, August 5th. The e-commerce company reported $1.60 EPS for the quarter, topping analysts' consensus estimates of $1.50 by $0.10. The company had revenue of $3.13 billion for the quarter, compared to analysts' expectations of $3.01 billion. eBay had a return on equity of 47.88% and a net margin of 18.50%.The business's revenue for the quarter was up 14.8% compared to the same quarter last year. During the same period in the previous year, the business posted $1.37 EPS. eBay has set its Q3 2026 guidance at 1.360-1.420 EPS. On average, sell-side analysts anticipate that eBay Inc. will post 4.86 earnings per share for the current fiscal year.

eBay Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, September 11th. Stockholders of record on Friday, August 28th will be given a dividend of $0.31 per share. This represents a $1.24 dividend on an annualized basis and a dividend yield of 1.2%. The ex-dividend date is Friday, August 28th. eBay's payout ratio is 25.67%.

eBay Company Profile

eBay Inc is a global e-commerce company that operates an online marketplace connecting individual consumers and businesses for the sale and purchase of new, used and collectible goods. Founded in 1995 by Pierre Omidyar and headquartered in San Jose, California, eBay grew from its early auction-style site into a diversified platform offering both auction-format listings and fixed-price "Buy It Now" transactions. The company completed an initial public offering in the late 1990s and has since evolved its platform and services to support a broad range of product categories and buyer preferences.

The company's core business centers on its marketplace platform, which provides listing, search and transaction capabilities for millions of items across consumer goods, electronics, fashion, collectibles and more.

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