Smead Capital Management Inc. Trims Stock Holdings in eBay Inc. $EBAY

Key Points

• Smead Capital Management Inc. reduced its stake in eBay by 8.6%, selling 314,424 shares and leaving it with approximately 3.3 million shares, which represents 3.9% of its investment portfolio.
• eBay announced a quarterly dividend of $0.29 per share, with the payment scheduled for September 12th, indicating an annual yield of 1.3%.
• Recent insider trading activity showed both the SVP and CEO sold shares, reflecting a decrease of 34.70% and 3.83% in their respective positions in the company.

Smead Capital Management Inc. reduced its position in eBay Inc. (NASDAQ:EBAY - Free Report) by 8.6% during the first quarter, according to its most recent 13F filing with the SEC. The firm owned 3,323,333 shares of the e-commerce company's stock after selling 314,424 shares during the period. eBay accounts for approximately 3.9% of Smead Capital Management Inc.'s portfolio, making the stock its 14th largest holding. Smead Capital Management Inc. owned approximately 0.72% of eBay worth $225,089,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds have also recently added to or reduced their stakes in the business. Marvin & Palmer Associates Inc. purchased a new stake in shares of eBay during the 1st quarter valued at approximately $2,958,000. Assenagon Asset Management S.A. lifted its position in shares of eBay by 0.5% during the first quarter. Assenagon Asset Management S.A. now owns 53,089 shares of the e-commerce company's stock worth $3,596,000 after acquiring an additional 246 shares in the last quarter. IFP Advisors Inc lifted its position in shares of eBay by 59.6% during the first quarter. IFP Advisors Inc now owns 3,857 shares of the e-commerce company's stock worth $261,000 after acquiring an additional 1,440 shares in the last quarter. Wealth Enhancement Advisory Services LLC boosted its holdings in shares of eBay by 2.7% in the first quarter. Wealth Enhancement Advisory Services LLC now owns 79,452 shares of the e-commerce company's stock worth $5,381,000 after acquiring an additional 2,095 shares during the period. Finally, National Pension Service grew its position in shares of eBay by 0.7% in the first quarter. National Pension Service now owns 894,594 shares of the e-commerce company's stock valued at $60,591,000 after purchasing an additional 5,782 shares in the last quarter. Institutional investors own 87.48% of the company's stock.

eBay Trading Down 0.8%

Shares of EBAY stock traded down $0.74 during mid-day trading on Tuesday, reaching $89.87. The stock had a trading volume of 4,881,377 shares, compared to its average volume of 5,646,011. The firm has a market capitalization of $41.07 billion, a PE ratio of 19.80, a price-to-earnings-growth ratio of 2.19 and a beta of 1.32. The stock's 50-day moving average price is $85.62 and its two-hundred day moving average price is $75.00. The company has a current ratio of 1.00, a quick ratio of 1.00 and a debt-to-equity ratio of 1.05. eBay Inc. has a 52-week low of $56.33 and a 52-week high of $101.15.

eBay (NASDAQ:EBAY - Get Free Report) last posted its earnings results 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 return on equity of 38.97% and a net margin of 20.86%.The company had revenue of $2.73 billion for the quarter, compared to analysts' expectations of $2.64 billion. During the same period last year, the firm earned $1.18 earnings per share. eBay's quarterly revenue was up 6.1% on a year-over-year basis. eBay has set its Q3 2025 guidance at 1.290-1.340 EPS. Equities analysts expect that eBay Inc. will post 3.86 earnings per share for the current fiscal year.

eBay Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, September 12th. Investors of record on Friday, August 29th will be issued a dividend of $0.29 per share. This represents a $1.16 dividend on an annualized basis and a dividend yield of 1.3%. The ex-dividend date is Friday, August 29th. eBay's dividend payout ratio is currently 25.55%.

Wall Street Analyst Weigh In

A number of equities research analysts have recently issued reports on the stock. Morgan Stanley increased their price target on shares of eBay from $81.00 to $89.00 and gave the stock an "overweight" rating in a report on Thursday, July 31st. Arete raised eBay from a "sell" rating to a "neutral" rating and set a $91.00 price target on the stock in a report on Thursday, August 7th. Needham & Company LLC boosted their price objective on eBay from $78.00 to $95.00 and gave the stock a "buy" rating in a report on Thursday, July 31st. Barclays restated an "overweight" rating and issued a $92.00 price objective (up from $77.00) on shares of eBay in a research report on Thursday, July 31st. Finally, Stifel Nicolaus lifted their target price on shares of eBay from $62.00 to $68.00 and gave the company a "hold" rating in a research report on Tuesday, July 29th. One equities research analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating, twenty have given a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat.com, eBay has a consensus rating of "Hold" and a consensus price target of $78.89.

Insiders Place Their Bets

In other news, SVP Julie A. Loeger sold 75,952 shares of eBay stock in a transaction dated Monday, August 4th. The shares were sold at an average price of $93.25, for a total transaction of $7,082,524.00. Following the sale, the senior vice president owned 53,107 shares of the company's stock, valued at approximately $4,952,227.75. The trade was a 58.85% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CEO Jamie Iannone sold 10,974 shares of the stock in a transaction dated Wednesday, July 2nd. The stock was sold at an average price of $75.75, for a total transaction of $831,280.50. Following the completion of the transaction, the chief executive officer directly owned 306,651 shares of the company's stock, valued at approximately $23,228,813.25. The trade was a 3.46% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders sold 183,209 shares of company stock worth $15,331,663. Insiders own 0.64% of the company's stock.

eBay Profile

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.