eBay (NASDAQ:EBAY) Stock Price Up 4.3% - Time to Buy?

Key Points

• eBay shares rose 4.3% to about $117 in Monday trading, although volume was 84% below the average daily level.
• Analyst sentiment is mixed: the consensus rating is “Hold” with a $115.24 price target, though Piper Sandler raised its target to $133 and maintained an “Overweight” rating.
• eBay exceeded quarterly expectations with $1.60 in EPS versus $1.50 expected and revenue of $3.13 billion, up 14.8% year over year. The company also pays a quarterly dividend of $0.31 per share, yielding about 1.1%.

eBay Inc. (NASDAQ:EBAY - Get Free Report)'s share price was up 4.3% during trading on Monday. The company traded as high as $116.96 and last traded at $117.0110. 780,719 shares traded hands during mid-day trading, a decline of 84% from the average daily volume of 4,887,127 shares. The stock had previously closed at $112.19.

Wall Street Analysts Forecast Growth

Several analysts have commented on the stock. Piper Sandler reissued an "overweight" rating and set a $133.00 price target (up from $115.00) on shares of eBay in a research report on Thursday, August 6th. Robert W. Baird set a $126.00 price target on shares of eBay in a report on Thursday, August 6th. Truist Financial lifted their price objective on shares of eBay from $105.00 to $115.00 and gave the stock a "hold" rating in a research report on Thursday, August 6th. BMO Capital Markets set a $145.00 price objective on shares of eBay in a research note on Thursday, August 6th. Finally, Weiss Ratings cut shares of eBay from a "buy (b+)" rating to a "buy (b)" rating in a research report on Monday, September 28th. One equities research analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, sixteen have given a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, the company presently has an average rating of "Hold" and a consensus price target of $115.24.

eBay Price Performance

The company has a quick ratio of 1.02, a current ratio of 1.02 and a debt-to-equity ratio of 1.10. The firm has a market cap of $52.37 billion, a PE ratio of 24.39, a price-to-earnings-growth ratio of 2.97 and a beta of 1.33. The stock has a 50 day moving average price of $106.65 and a two-hundred day moving average price of $107.05.

eBay (NASDAQ:EBAY - Get Free Report) last announced its quarterly earnings data on Wednesday, August 5th. The e-commerce company reported $1.60 EPS for the quarter, beating the consensus estimate of $1.50 by $0.10. The firm had revenue of $3.13 billion during the quarter, compared to analyst estimates of $3.01 billion. eBay had a net margin of 18.50% and a return on equity of 47.88%. eBay's revenue was up 14.8% on a year-over-year basis. During the same period last year, the firm posted $1.37 EPS. eBay has set its Q3 2026 guidance at 1.360-1.420 EPS. As a group, equities analysts expect that eBay Inc. will post 4.87 earnings per share for the current year.

eBay Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Friday, September 11th. Shareholders of record on Friday, August 28th were paid a dividend of $0.31 per share. The ex-dividend date was Friday, August 28th. This represents a $1.24 dividend on an annualized basis and a yield of 1.1%. eBay's dividend payout ratio is presently 25.67%.

Insiders Place Their Bets

In other eBay news, CEO Jamie Iannone sold 11,110 shares of the firm's stock in a transaction 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 completion of the transaction, the chief executive officer owned 253,211 shares of the company's stock, valued at approximately $27,486,054.05. This trade represents a 4.20% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Jordan Sweetnam sold 1,014 shares of eBay stock in a transaction on Tuesday, August 18th. The stock was sold at an average price of $101.39, for a total transaction of $102,809.46. Following the sale, the senior vice president owned 35,546 shares of the company's stock, valued at $3,604,008.94. The trade was a 2.77% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 34,344 shares of company stock valued at $3,635,567. Corporate insiders own 0.67% of the company's stock.

Hedge Funds Weigh In On eBay

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in EBAY. BlackRock Inc. purchased a new stake in shares of eBay during the second quarter worth $4,406,897,000. Independent Franchise Partners LLP raised its position in shares of eBay by 5.2% in the fourth quarter. Independent Franchise Partners LLP now owns 7,748,177 shares of the e-commerce company's stock valued at $674,866,000 after buying an additional 384,570 shares during the last quarter. Dimensional Fund Advisors LP lifted its stake in shares of eBay by 1.7% in the first quarter. Dimensional Fund Advisors LP now owns 4,901,415 shares of the e-commerce company's stock worth $446,042,000 after buying an additional 80,450 shares in the last quarter. Legal & General Group Plc purchased a new position in shares of eBay in the second quarter worth about $506,653,000. Finally, Amundi lifted its stake in shares of eBay by 26.4% in the second quarter. Amundi now owns 4,014,323 shares of the e-commerce company's stock worth $448,601,000 after buying an additional 838,057 shares in the last quarter. Hedge funds and other institutional investors own 87.48% of the company's stock.

About eBay

eBay Inc NASDAQ: EBAY operates a global online marketplace that connects millions of buyers and sellers. The platform enables individuals, small businesses and larger retailers to list and purchase new, used and refurbished merchandise across categories such as electronics, fashion, collectibles, automotive parts, home goods and industrial products.

The company generates revenue primarily through fees charged to sellers for listing and selling items, along with advertising services and other marketplace-related offerings.

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