Do You Think It Is A Good Idea To Invest In eBay Inc. (EBAY)?

The stock of eBay Inc. (NASDAQ:EBAY) increased by increased by $4.38 on Friday to finish at $80.59, up 5.75 percent. The last five days have seen an average of 5,804,060 shares of common stock traded. 32 times new highs were reached in the current year, with a gain of $30.34. The average number of shares traded over the last 20 days was 4,800,020, while the average volume over the last 50 days totaled 5,928,376.

EBAY stock appreciated 9.63% since last month. On 10/04/21, the company’s shares reached a one-month low of $68.28. The stock touched a high of $77.83 on 10/22/21, after rallying from a low of $45.36 in 52 weeks. The price of EBAY stock has risen by 60.38% or $30.34 this year, reaching a new high 32 times. Still, the stock price is up 3.54% from the 52-week high.

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Insider Transactions

There have been 18 days since eBay Inc. (EBAY) last reported insider trading activity on Oct 07. On Oct 07, Director SWAN ROBERT HOLMES sold 20,000 shares at $75.00 each. This transaction resulted in the insider making $1,500,000. On Sep 17, Thompson Pete sold 1,394 shares at a price of US$74.89. After the transaction, the insider now owns 48,761 shares. VP, Chief Accounting Officer Doerger Brian J. had earlier sold 2,862 shares on Aug 30 for $77.69 a share. The transaction was completed for $222,350.

Valuation Metrics

eBay Inc. (EBAY) has a trailing price-to-earnings (P/E) ratio of 24.77. This level actually compares favorably with the industry at large, as the PE for the Internet Retail industry stands at about 44.93. Further, its PE also compares favorably with the Consumer Cyclical sector’s trailing 12 months PE ratio, which comes in at 32.04 right now. The PE ratio of eBay Inc. has varied between 19.64 and 3.485 in the last five years. Beta for the stock is 1.11. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 4.60, the price-to-book (PB) ratio of 4.17, and the price-to-cash flow ratio of 24.43.

eBay Inc.’s dividend is $0.72 per share per year. With a dividend yield of 0.89%, EBAY has a payout ratio of 3.60%. On Sep. 17, the company paid $0.18 per share in dividends, remained unchanged from $0.18 last year. A $0.02 dividend increase was reported on Wednesday February 3 2021, making it the 2 consecutive year the dividend has increased.

For the three months ended June 29, eBay Inc.’s quick ratio was 4.00, while its current ratio was 4.00, indicating its ability to pay off its debt. The company’s long-term debt to equity ratio for the quarter ending June 29 is 0.64, and the total debt to equity ratio is 0.70. As far as profitability goes, gross margin for the trailing twelve months is 75.20% percent. eBay Inc.’s EBITDA margin for the year ended June 29 was 32.27%, whereas its operating margin stood at 27.20% for the same period. Based on annual data, it had gross profit of $7.8 billion and revenue of $10.27 billion.

Investors will also look at the performance of the company’s management in order to determine the potential profitability of their investment. EBAY’s return on assets (ROA) during the last 12 months has been 58.70%. There was a 15.80% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was 222.70%. ROE has averaged 10.33 in the past year for the broader industry.

Earnings Surprise

According to eBay Inc.’s quarterly financial report for the quarter that ended June 29. A lower net income was reported in the quarter under review than the previous quarter. Net income for the quarter came in at $2.67 billion, while revenues fell by -7.38% to $3.02 billion. It was predicted that eBay Inc.’s quarterly earnings would be $0.99, but it ended up being $0.95, beating the consensus by 4.20%. EBITDA was $853.0 million for the quarter. At the end of eBay Inc.’s most recent quarter ended June 29, its liabilities totaled 18.81 billion, while its total debt was $9.35 billion. Equity owned by shareholders amounts to $650.06 million.

Technical Picture

Here’s a quick look at eBay Inc.’s (EBAY) price momentum from a technical perspective. As of 22 October, the RSI 9-day stood at 81.64%, suggesting the stock is Overbought, with a 29.26% historical volatility rate.

The stochastic %K and %D were 91.79% and 87.78% respectively, while the average true range (ATR) was 1.93. Based on the 14-day stochastic reading of 95.21%, the RSI (14) reading is 73.35%. On the 9-day MACD Oscillator, the stock is at 1.94, and the 14-day reading is at 2.87.

Analyst Ratings

Analysts have assigned eBay Inc. (EBAY) an Overweight rating. EBAY is a stock that is recommended for selling by 0 brokerage firms, while 17 companies recommend holding. The stock is underweighted by 1 analyst. Among the analysts who rate the stock, 3 rates it overweight and 8 others recommend it as a buy.

What is EBAY’s price target for the next 12 months?

The current consensus forecast for the stock is between $63.00 and $85.00, with a median target price of $74.00. In analyzing these forecasts, the average price target given by analysts for eBay Inc. (EBAY) is $73.66.


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