Stock analysts at Wells Fargo cut their rating on shares of eBay Inc. (NASDAQ:EBAY) from Outperform to a new rating of Market Perform in their opinion released on September 27. UBS analysts have downgraded their rating of EBAY shares from Buy to Neutral in a separate flash note to investors on September 04. Analysts at Aegis Capital are sticking to their Buy recommendation for the stock. However, on July 18, they lifted target price to $45 from the prior target set at $43. Analysts at Aegis Capital, made their first call for this company shares with a Buy rating, according to a research note that dated back to July 18.
For the period that ended September 13, 2019, the short interest in eBay Inc. (NASDAQ:EBAY) stock is on the down. The 0.46% decline could be an indication that investors and traders expect a growth in the share price, often as a result of an advancement in the business’ fundamentals. The average brokerage opinion at 2.6 suggests acquiring these shares. Between August 30 and September 13, the total count of shorted shares totalled 22.16 million. That number was 101,279 less shares compared with the total of 22.26 million shares in the space of prior two weeks, which suggests more traders or funds are betting that the company stock will move up. The average daily volume for EBAY at the September 13th settlement retreated to 6,439,993, versus 6,543,491 at the August 30th report. That led days to cover to move at 3.440345, a 1.14% increase compared to the 3.401407 days to cover recorded at the prior short interest data release.
Let’s take a glimpse at some insider activity at eBay Inc. (NASDAQ:EBAY) and observe the pattern. The earliest insider trade happened on 09/03/2019. WENIG DEVIN parted with a total of 10 thousand shares of the firm at average share price of $39.86. The total amount for the sale was set at $398.6 thousand. On completing this exchange, the President and CEO account balance was 1.02 million shares. The stock lost -5.12 percent from that insider sale. On 08/05/2019, MURPHY MATTHEW J, Director, did a purchase of 6 thousand shares at a price of $38.79 per share. This increased 232.74 thousand shares to the insider’s fortune and the stock experienced a -2.5 percent retreat in price since the news became public. This exchange saw 6 thousand shares get into the Director account. On 08/01/2019, President and CEO WENIG DEVIN recorded a sale transaction valued at $6.21 million. The sale at $41.49 a share has eliminated 149.56 thousand shares from the insider’s portfolio position. Meanwhile, shares price witnessed -8.85 percent decrease since the transaction reporting date. The company insider is left with 1.03 million shares remaining in the account. Lee Jae Hyun, who works as SVP, General Manager, eBay Mar at the company, performed a sale of 48.11 thousand shares in a transaction worth $2.02 million. The disposal recorded on 08/01/2019 was priced at $41.92 per share. The stock price plunged -9.78 percent since the transaction. Lee Jae Hyun currently holds a stake of 197.25 thousand in EBAY stock which is worth $7.46 million after the insider selling.
The stock is lingering around the initial support level of $37.66. After this, the following support is at the zone of $37.49. Up until the time the EBAY stock hit levels beyond the current one, bulls should have no alarm. In terms of its momentum, the stock’s RSI hit 35.05 on the daily chart, and this may be a cause for comfort. In case the price goes below $37.49 level on closing basis, there may be more profit booking with the stock growing weaker. Still, getting to the $38.09 level may cause a pull-back move approaching $38.35 mark.
On October 07, 2019, eBay Inc. (NASDAQ:EBAY) shares lost -1.28% or -0.49 points to close at $37.82 with a thin trading volume of 6.06 million shares. It opened the trading session at $38.04, the shares rose to $38.1899 and dropped to $37.76, the range by which the price of stock traded the whole day. The company now has a market cap of $31.4 billion and currently has 830.88 million outstanding shares. eBay Inc. (EBAY) stock has plunged -6.32 percent of market value in 21 trading days.
EBAY stock’s trailing 3-year beta is 1.41, meaning there will be a greater rate of return, although posing a higher risk. The part of a firm’s profit given to each outstanding share of regular stock was $2.09 share in the trailing 52 weeks. The stock’s value surged 34.73 percent year to date (YTD) compared to a rise of 15.91 percent in 52 week’s period. The firm’s shares are still trading -9.95 percent below its 1-year high of $42.00 and 45.41 percent up from 52-week low of $26.01. The average consensus ranking on the company is 2.6, on a ranging where 5 is equal to a consensus sell rating. In other words, the mean analyst recommendations are ranking this stock as a sell.
eBay Inc. (EBAY) shares are trading at a P/E ratio of 14.8 times earnings posted in the trailing 12 months. The industry EBAY deals with has an average P/E of 45.3. Its P/B ratio is standing at 7.7X compared to the 9.4 industry average. It is additionally sporting a 3.2 on the Price-to-Sales ratio, compared to the industry’s P/S average of 2.4. eBay Inc. has a 77.4% gross profit margin, with its operating margin around 22.2%. Alongside this, the company’s net profit margin currently stands at 22.1%.
Past records have indicated that shares in eBay Inc. rose on 24 different earnings reaction days and we have yet to see whether this trend will play out and remain in place when the company reports upcoming earnings.