On the upside, eBay Inc. (NASDAQ:EBAY) will test short term resistance at around $30.82. On a downside, the share price is likely to find some support, which begins at $29.71. The failure to get near-term support could push it to $29.01. Its 50 day simple moving average (SMA 50) price is $28.87 and its 200-day simple moving average (SMA 200) price is $34.22. The company’s stock currently has a total float of 915.05M shares. Its weekly volatility is hovering around 2.58% and felt 3.21% volatility in price over a month.
EBAY stock has been range bound between the range of $29.42 and $29.42 during the whole day. The stock finished Friday at $30.41. The -0.52% downtrend forced its market value to reach at $29.43B. The price went up as high as $29.42 before retreating. Trading activity significantly improved as the volume at ready counter increased to 13,062,167 shares versus 13,051,479 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 11,365,800 shares. The stock is now 16.92% above against its bear-market low of $26.01 on December 26, 2018. It has retreated -54.52% since it’s 52-week high of $46.99 reached in February. Now the market price is down -19.34% on the year and up 8.34% YTD.
Separately, it has been reported that multiple insider activity took place at eBay Inc. (EBAY). Director Swan Robert Holmes acquired 17,787 shares for $289,207 in transaction occurred on 2019/01/02. After making this transaction, the Director owns a direct stake of 501,771 shares, worth $8,794,785, as per the last closing price. On 2018/11/30 Lee Jae Hyun, SVP, EMEA at EBAY, dumped 33,652 shares at an average price of $29.23 per share. The selling total is valued at $3,218,229.
SVP, APAC, Park Joo Man had divested 18,283 shares for $99,174 through a trade on 2018/11/27. Following this activity, the insider holds 522,528 shares worth $3,015,881 as of recent close. Wall Street’s most bullish eBay Inc. (NASDAQ:EBAY) analysts are predicting the share price to blow past $52 per share during the next 12 months. The current median share price forecast by them is $33, suggesting that the stock could increase 8.52% in that time frame. The average price target of $35.8 calls for a nearly 17.72% increase in the stock price.
It had seen a negative analyst call from Goldman, which downgraded the stock from Buy to Neutral on January 04. Analysts at Aegis Capital, maintained the company shares at Buy on January 02 but switched target price from $44 to $40. The stock lost favor of Morgan Stanley analysts who expressed their lack of confidence in it using a downgrade from Overweight to Equal-Weight on December 12.
When looking at valuations, eBay Inc. (EBAY) has a cheap P/E of 13.52x as compared to industry average of 25.67x. Moreover, it trades for 11.74 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 4.28x price/book and 2.81x price/sales. Compared to others, eBay Inc. is in a different league with regards to profitability, having net margins of -7.9%. To put some perspective around this, the industry’s average net margin is 25%. EBAY’s ROE is -11.2%, which is also considerably worse than the industry’s ROE of 21.15%. It’s also very liquid in the near term, with a current ratio of 1.7. The stock has a debt/capital of 1.33.
Shares of eBay Inc. (EBAY) have gained 10.9% since the company’s Mar-19 earnings report. Over the past 12 fiscal quarters, eBay Inc. (NASDAQ:EBAY) has topped consensus earnings estimates in 5 quarters (41%), missed earnings in 4 quarters (33%), whereas at 3 occasion EPS met analyst expectations. EBAY last reported earnings on October 30, 2018 when it released Sep-18 results that exceeded expectations. The company raked in $0.56 per share, -81.99% change on the same period last year. That was better than consensus for $0.54. Revenue for the recent quarter stood at $2.65 billion, up 10% on last year and below the $2.65 billion predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $2.6 billion to $2.76 billion, which should be compared with $2.57 billion generated last year. EPS is seen in a range of $0.48 to $0.73, against the $0.56 reported a year ago.