Prospera Financial Services Inc Lowers Stake in eBay Inc. $EBAY

Key Points

• Prospera Financial Services cut its eBay stake by 57.8% in the fourth quarter, reducing holdings to 16,239 shares worth about $1.41 million.
• eBay reported strong quarterly results, with earnings of $1.66 per share and revenue of $3.09 billion, both ahead of analyst expectations. Revenue rose 19.5% year over year, and the company issued Q2 guidance of $1.09 to $1.14 EPS.
• The stock remains under a Hold consensus from analysts, even as several firms raised price targets; the latest consensus target is about $107.84. eBay also announced a quarterly dividend of $0.31 per share, implying a 1.1% annualized yield.

Prospera Financial Services Inc lessened its position in shares of eBay Inc. (NASDAQ:EBAY - Free Report) by 57.8% in the fourth quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 16,239 shares of the e-commerce company's stock after selling 22,228 shares during the period. Prospera Financial Services Inc's holdings in eBay were worth $1,414,000 at the end of the most recent reporting period.

Other institutional investors have also recently added to or reduced their stakes in the company. Guggenheim Capital LLC raised its stake in shares of eBay by 7.4% in the 2nd quarter. Guggenheim Capital LLC now owns 14,334 shares of the e-commerce company's stock valued at $1,067,000 after acquiring an additional 988 shares during the period. Jump Financial LLC purchased a new position in shares of eBay in the 2nd quarter valued at $275,000. NewEdge Advisors LLC lifted its stake in shares of eBay by 70.4% during the second quarter. NewEdge Advisors LLC now owns 108,572 shares of the e-commerce company's stock worth $8,084,000 after purchasing an additional 44,851 shares in the last quarter. Sei Investments Co. lifted its stake in shares of eBay by 48.7% during the second quarter. Sei Investments Co. now owns 471,543 shares of the e-commerce company's stock worth $35,111,000 after purchasing an additional 154,465 shares in the last quarter. Finally, Treasurer of the State of North Carolina lifted its stake in shares of eBay by 26.3% during the second quarter. Treasurer of the State of North Carolina now owns 325,678 shares of the e-commerce company's stock worth $24,250,000 after purchasing an additional 67,731 shares in the last quarter. Hedge funds and other institutional investors own 87.48% of the company's stock.

eBay News Roundup

Here are the key news stories impacting eBay this week:

• Positive Sentiment: Takeover speculation could still support the stock if a higher or more credible bid emerges, as GameStop’s Ryan Cohen has said he may pursue other options after eBay rejected his $56 billion offer. Wall Street awaits GameStop CEO Cohen's next move after eBay rejected takeover bid
• Positive Sentiment: Wall Street coverage has highlighted eBay’s strong recent earnings and revenue growth, and some analysts still view the company as a steady compounder with improved profitability. Is eBay Stock A Compounding Engine?
• Neutral Sentiment: Brokerages continue to rate eBay as “Hold,” suggesting investors are waiting for clearer catalysts before bidding the shares meaningfully higher. eBay Inc. NASDAQ: EBAY Given Consensus Rating of "Hold" by Brokerages
• Negative Sentiment: Arete Research trimmed its price target on eBay to $111 from $113 and kept a neutral rating, signaling more limited upside from current levels. Arete adjusts price target on eBay to $111 from $113, maintains neutral rating
• Negative Sentiment: eBay SVP Mazen Rawashdeh sold 50,000 shares in a pre-arranged trading plan, a move that can add to investor caution even though it was disclosed and not necessarily a negative signal on fundamentals. SEC Form 4 filing

eBay Stock Down 4.3%

Shares of eBay stock opened at $110.36 on Thursday. The company has a quick ratio of 1.22, a current ratio of 1.22 and a debt-to-equity ratio of 1.36. The firm has a market cap of $49.00 billion, a P/E ratio of 25.03, a P/E/G ratio of 2.57 and a beta of 1.39. eBay Inc. has a fifty-two week low of $71.85 and a fifty-two week high of $119.31. The business has a 50-day moving average price of $101.92 and a 200 day moving average price of $92.33.

eBay (NASDAQ:EBAY - Get Free Report) last posted its earnings results on Wednesday, April 29th. The e-commerce company reported $1.66 EPS for the quarter, beating the consensus estimate of $1.58 by $0.08. The company had revenue of $3.09 billion during the quarter, compared to analyst estimates of $3.04 billion. eBay had a return on equity of 46.11% and a net margin of 17.58%.The business's revenue was up 19.5% compared to the same quarter last year. During the same period in the prior year, the company earned $1.38 earnings per share. eBay has set its Q2 2026 guidance at 1.090-1.140 EPS. On average, sell-side analysts forecast that eBay Inc. will post 4.83 earnings per share for the current fiscal year.

eBay Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, June 12th. Shareholders of record on Friday, May 29th will be given a $0.31 dividend. This represents a $1.24 dividend on an annualized basis and a yield of 1.1%. The ex-dividend date is Friday, May 29th. eBay's dividend payout ratio is 28.12%.

Insider Transactions at eBay

In other eBay news, SVP Jordan Douglas Bradle Sweetnam sold 1,010 shares of the company's stock in a transaction that occurred on Monday, May 18th. The stock was sold at an average price of $115.61, for a total value of $116,766.10. Following the completion of the sale, the senior vice president directly owned 32,146 shares in the company, valued at $3,716,399.06. This represents a 3.05% decrease in their ownership of the stock. 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, SVP Cornelius Boone sold 16,685 shares of the stock in a transaction on Wednesday, March 18th. The shares were sold at an average price of $92.44, for a total value of $1,542,361.40. Following the sale, the senior vice president owned 94,479 shares of the company's stock, valued at $8,733,638.76. This trade represents a 15.01% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders have sold 136,953 shares of company stock valued at $14,139,444. 0.64% of the stock is currently owned by company insiders.

Analysts Set New Price Targets

A number of research analysts have commented on EBAY shares. Sanford C. Bernstein boosted their price objective on eBay from $95.00 to $100.00 and gave the stock a "market perform" rating in a research note on Wednesday, May 20th. The Goldman Sachs Group boosted their price objective on eBay from $88.00 to $100.00 and gave the stock a "neutral" rating in a research note on Thursday, April 30th. Robert W. Baird boosted their price objective on eBay from $105.00 to $117.00 in a research note on Thursday, April 30th. Barclays boosted their price objective on eBay from $104.00 to $114.00 and gave the stock an "overweight" rating in a research note on Thursday, April 30th. Finally, Wells Fargo & Company boosted their price objective on eBay from $100.00 to $104.00 and gave the stock an "equal weight" rating in a research note on Thursday, April 30th. Thirteen investment analysts have rated the stock with a Buy rating, nineteen have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, eBay currently has a consensus rating of "Hold" and a consensus target price of $107.84.

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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