eBay (NASDAQ:EBAY) saw its price target adjusted by President Capital from $103.00 to $94.00 in a research note released on the morning of October 30, 2023. Despite this reduction, President Capital maintains a “buy” rating on the e-commerce platform. This adjustment follows a series of actions from other analysts regarding eBay’s stock.
The Goldman Sachs Group also updated its stance on eBay, raising its price target from $72.00 to $78.00 while issuing a “sell” rating. This report emerged on the same day as President Capital’s revision. Conversely, Mizuho initiated coverage of eBay with a “neutral” rating and a price target of $98.00 on September 29, 2023.
In addition, TD Cowen increased its price target for eBay from $80.00 to $84.00 and maintained a “hold” rating, as outlined in a report dated October 20, 2023. Meanwhile, Piper Sandler reduced its target from $102.00 to $98.00, while keeping an “overweight” rating on the stock. Finally, BNP Paribas began its coverage on eBay with a “hold” rating on November 24, 2023.
Analyst ratings for eBay show a mix of opinions; one analyst rated it as a “Strong Buy,” fourteen issued a “Buy” rating, twenty analysts provided a “Hold” rating, and two analysts assigned a “Sell” rating. According to data from MarketBeat, eBay currently holds an average rating of “Hold” with a consensus target price of $94.41.
eBay’s Recent Earnings Report
In its latest quarterly earnings report released on October 29, 2023, eBay reported earnings per share (EPS) of $1.36, surpassing analysts’ expectations of $1.33 by $0.03. The company achieved a return on equity of 41.94% and a net margin of 20.37%. eBay’s revenue for the quarter amounted to $2.82 billion, exceeding the anticipated $2.73 billion. This reflects a year-over-year revenue increase of 9.5%, compared to $1.19 EPS in the same quarter the previous year.
Looking ahead, eBay has set its Fiscal Year 2025 guidance at $4.090 to $4.140 EPS, with a Q4 2025 guidance of $1.310 to $1.360 EPS. Analysts forecast an average EPS of $3.86 for the current year.
Dividend and Insider Activity
On December 12, 2023, eBay declared a quarterly dividend of $0.29, which was distributed to shareholders of record on November 28, 2023. This equates to an annualized dividend of $1.16, yielding 1.4%, with a payout ratio of 25.22%.
Recent insider trading activity has also been noted. On December 18, 2023, Senior Vice President Cornelius Boone sold 4,462 shares at an average price of $83.94, totaling approximately $374,540.28. Following this transaction, Boone retained 91,921 shares valued at around $7,715,848.74, indicating a 4.63% decrease in ownership. Another insider, Senior Vice President Julie A. Loeger, sold 2,896 shares on December 11, 2023 at an average price of $82.44, amounting to roughly $238,746.24. After this sale, Loeger holds 55,990 shares valued at approximately $4,615,815.60, representing a 4.92% reduction in ownership.
In total, insiders have sold 60,896 shares worth around $5,051,424 over the past 90 days, while company insiders collectively own 0.64% of eBay’s stock.
Institutional Investor Activity
Recent changes in holdings by institutional investors reveal increased interest in eBay. Miracle Mile Advisors LLC boosted its holdings by 0.4% during the third quarter, now owning 29,151 shares worth approximately $2,651,000. Garrett Wealth Advisory Group LLC raised its stake by 3.8% in the second quarter, bringing their total to 3,278 shares valued at $244,000. Other firms like Groupe la Francaise and Hemington Wealth Management have also increased their positions in eBay.
Currently, institutional investors and hedge funds hold 87.48% of eBay’s stock, indicating strong institutional backing for the company.
eBay, founded in 1995 and headquartered in San Jose, California, has evolved from a simple auction platform into a comprehensive e-commerce marketplace that facilitates the buying and selling of a wide array of goods.
