eBay (NASDAQ:EBAY) Shares Gap Down on Analyst Downgrade

eBay Inc. (NASDAQ:EBAY - Get Free Report)'s stock price gapped down prior to trading on Thursday after Morgan Stanley lowered their price target on the stock from $62.00 to $61.00. The stock had previously closed at $51.06, but opened at $49.32. Morgan Stanley currently has an overweight rating on the stock. eBay shares last traded at $49.91, with a volume of 2,038,897 shares traded.

Several other research analysts have also issued reports on the company. TD Cowen increased their target price on eBay from $42.00 to $45.00 and gave the stock a "hold" rating in a research report on Thursday. Robert W. Baird increased their target price on eBay from $50.00 to $57.00 and gave the stock an "outperform" rating in a research report on Thursday. The Goldman Sachs Group began coverage on eBay in a research report on Wednesday, January 10th. They issued a "sell" rating and a $38.00 target price for the company. Barclays upped their price target on eBay from $61.00 to $65.00 and gave the stock an "overweight" rating in a research note on Thursday. Finally, Piper Sandler upped their price target on eBay from $50.00 to $52.00 and gave the stock an "overweight" rating in a research note on Wednesday, February 28th. One equities research analyst has rated the stock with a sell rating, ten have assigned a hold rating and eight have assigned a buy rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus price target of $51.35.

Insider Activity

In other news, SVP Edward O. Garcia sold 1,165 shares of the stock in a transaction on Tuesday, February 20th. The stock was sold at an average price of $43.03, for a total transaction of $50,129.95. Following the transaction, the senior vice president now directly owns 31,888 shares of the company's stock, valued at approximately $1,372,140.64. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Insiders own 0.21% of the company's stock.

Hedge Funds Weigh In On eBay

Hedge funds and other institutional investors have recently modified their holdings of the company. CVA Family Office LLC bought a new position in shares of eBay during the 4th quarter valued at $25,000. Jones Financial Companies Lllp raised its holdings in eBay by 73.5% in the 4th quarter. Jones Financial Companies Lllp now owns 732 shares of the e-commerce company's stock worth $32,000 after purchasing an additional 310 shares during the period. American National Bank raised its holdings in eBay by 200.0% in the 1st quarter. American National Bank now owns 600 shares of the e-commerce company's stock worth $32,000 after purchasing an additional 400 shares during the period. First Command Advisory Services Inc. bought a new position in eBay in the 3rd quarter worth $46,000. Finally, Riverview Trust Co bought a new position in eBay in the 1st quarter worth $48,000. 87.48% of the stock is owned by institutional investors.

eBay Trading Down 3.3 %

The stock has a fifty day moving average of $50.70 and a 200 day moving average of $44.77. The company has a market capitalization of $25.01 billion, a P/E ratio of 9.46, a PEG ratio of 2.05 and a beta of 1.31. The company has a debt-to-equity ratio of 1.09, a quick ratio of 2.44 and a current ratio of 2.44.

eBay (NASDAQ:EBAY - Get Free Report) last announced its earnings results on Wednesday, May 1st. The e-commerce company reported $1.25 EPS for the quarter, topping analysts' consensus estimates of $1.20 by $0.05. eBay had a return on equity of 29.16% and a net margin of 27.36%. The company had revenue of $2.56 billion for the quarter, compared to analysts' expectations of $2.53 billion. During the same period last year, the firm earned $0.87 EPS. eBay's revenue for the quarter was up 1.8% compared to the same quarter last year. As a group, equities research analysts anticipate that eBay Inc. will post 3.75 EPS for the current fiscal year.

eBay Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, June 14th. Shareholders of record on Friday, May 31st will be issued a dividend of $0.27 per share. This represents a $1.08 dividend on an annualized basis and a yield of 2.19%. eBay's dividend payout ratio is presently 20.69%.

eBay declared that its Board of Directors has authorized a share buyback plan on Tuesday, February 27th that permits the company to buyback $2.00 billion in shares. This buyback authorization permits the e-commerce company to reacquire up to 8.1% of its stock through open market purchases. Stock buyback plans are usually an indication that the company's leadership believes its stock is undervalued.

eBay Company 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.