eBay (NASDAQ:EBAY) Hits New 52-Week High – Here’s Why

eBay Inc. (NASDAQ:EBAY)’s stock price reached a new 52-week high during trading on Wednesday. The company traded as high as $125.40 and last traded at $124.89, with a volume of 585,343 shares. The stock had previously closed at $118.62.

More eBay News

Here are the key news stories impacting eBay this week:

• Positive Sentiment: Argus raised its price target to $138 from $133 and reiterated a Buy rating, signaling confidence in further upside. Argus raises eBay price target
• Positive Sentiment: Nissan became the first automaker to sell factory parts through eBay Canada, with local dealers fulfilling orders. The partnership could broaden eBay’s selection and attract more auto-parts shoppers. Nissan sells factory parts on eBay Canada
• Neutral Sentiment: eBay is lowering Depop shipping rates and enhancing delivery features. These changes may improve the buyer experience and support sales, though the financial impact is not yet clear. eBay adjusts Depop shipping and delivery
• Neutral Sentiment: eBay is making livestream shopping a larger strategic focus. It could create another way to engage shoppers and sell collectibles, but its contribution to growth will depend on execution and adoption. eBay’s livestream-shopping strategy

Wall Street Analyst Weigh In

Several brokerages have recently commented on EBAY. Sanford C. Bernstein raised their target price on eBay from $115.00 to $125.00 and gave the company a “market perform” rating in a research note on Thursday, October 29th. Argus upped their price target on eBay from $133.00 to $138.00 and gave the stock a “buy” rating in a research note on Thursday. Arete Research dropped their price target on eBay from $113.00 to $111.00 and set a “neutral” rating on the stock in a research note on Thursday, September 24th. Barclays lowered eBay from an “overweight” rating to an “underweight” rating in a report on Thursday, October 29th. Finally, Oppenheimer set a $150.00 price objective on eBay in a research note on Thursday, October 29th. Seventeen investment analysts have rated the stock with a Buy rating, sixteen have assigned a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus price target of $123.52.

eBay Trading Down 1.0%

The company has a quick ratio of 0.78, a current ratio of 0.78 and a debt-to-equity ratio of 1.16. The firm’s 50-day moving average price is $112.16 and its 200 day moving average price is $104.41. The company has a market capitalization of $53.63 billion, a P/E ratio of 26.67, a P/E/G ratio of 2.99 and a beta of 1.30.

eBay (NASDAQ:EBAY) last posted its earnings results on Wednesday, October 28th. The e-commerce company reported $1.51 earnings per share for the quarter, topping analysts’ consensus estimates of $1.41 by $0.10. The company had revenue of $3.21 billion for the quarter, compared to analyst estimates of $3.12 billion. eBay had a net margin of 16.84% and a return on equity of 49.20%. The firm’s revenue was up 13.7% compared to the same quarter last year. During the same quarter in the prior year, the business posted $1.36 EPS. As a group, equities research analysts predict that eBay Inc. will post 4.75 earnings per share for the current year.

eBay Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, December 18th. Stockholders of record on Friday, December 4th will be issued a $0.31 dividend. This represents a $1.24 dividend on an annualized basis and a dividend yield of 1.0%. The ex-dividend date is Friday, December 4th. eBay’s dividend payout ratio (DPR) is currently 27.07%.

Insider Activity at eBay

In related news, CEO Jamie Iannone sold 11,110 shares of the stock in a transaction on Monday, October 5th. The stock was sold at an average price of $107.08, for a total value of $1,189,658.80. Following the completion of the sale, the chief executive officer directly owned 226,269 shares of the company’s stock, valued at approximately $24,228,884.52. This represents a 4.68% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed 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 the firm’s stock in a transaction on Tuesday, August 18th. The shares were sold at an average price of $101.39, for a total value of $102,809.46. Following the transaction, the senior vice president owned 35,546 shares in the company, valued at approximately $3,604,008.94. This trade represents 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 have sold 23,234 shares of company stock worth $2,429,577. 0.67% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in EBAY. BlackRock Inc. purchased a new stake in eBay in the second quarter worth about $4,406,897,000. Legal & General Group Plc bought a new position in shares of eBay in the second quarter worth about $506,653,000. Bank of America Corp DE purchased a new position in shares of eBay during the 2nd quarter valued at about $405,182,000. Bank of New York Mellon Corp purchased a new position in shares of eBay during the 2nd quarter valued at about $282,479,000. Finally, Nykredit A S purchased a new position in shares of eBay during the 2nd quarter valued at about $256,983,000. 87.48% of the stock is owned by institutional investors.

eBay Company Profile

eBay Inc operates a global online marketplace that connects buyers and sellers. Through its platform, individuals, small businesses and larger retailers can list and purchase new, used and refurbished merchandise across categories such as electronics, apparel, collectibles, automotive parts and accessories, home goods and industrial products. Transactions may take place through auctions or fixed-price listings, with payments, shipping and other seller and buyer services supporting the marketplace experience.

Founded in 1995 as AuctionWeb by Pierre Omidyar, eBay has grown from an online auction site into a broad e-commerce platform.