eBay Inc. (NASDAQ: EBAY) has seen its price target adjusted by President Capital, which has reduced it from $103.00 to $94.00. This change was announced in a research note released on Friday, October 27, 2023. President Capital maintains a “buy” rating for the company’s stock, reflecting continued confidence despite the revised target.
Several other financial institutions have also released updated assessments of eBay’s stock recently. The Goldman Sachs Group increased its target price from $72.00 to $78.00, while assigning a “sell” rating in a report dated October 30. Meanwhile, Mizuho Securities initiated coverage on eBay with a “neutral” rating and a price target of $98.00 in a report released on September 29. On October 20, TD Cowen raised its price objective from $80.00 to $84.00 and maintained a “hold” rating. Conversely, Piper Sandler lowered its target from $102.00 to $98.00 while keeping an “overweight” rating. Lastly, BNP Paribas began coverage with a “hold” rating on November 24.
According to MarketBeat, eBay’s stock has garnered a mix of ratings from analysts: one has issued a “strong buy,” fourteen have given a “buy,” twenty have provided a “hold,” and two have rated it as a “sell.” The average rating currently sits at “hold,” with a consensus target price of $94.41.
Financial Performance and Earnings Update
eBay reported its quarterly earnings on October 29, 2023, revealing earnings per share (EPS) of $1.36, surpassing the consensus estimate of $1.33 by $0.03. The company achieved a return on equity of 41.94% and a net margin of 20.37%. Revenue for the quarter reached $2.82 billion, exceeding analysts’ expectations of $2.73 billion. This marks a 9.5% increase in revenue compared to the same period last year.
Looking ahead, eBay has set its fiscal year 2025 guidance at an EPS range of $4.090 to $4.140 and forecasts a Q4 2025 EPS between $1.310 and $1.360. Analysts project an average EPS of $3.86 for the current year.
Dividend and Insider Activity
In addition to its earnings report, eBay announced a quarterly dividend of $0.29, which was paid on December 12, 2023. Shareholders of record as of November 28 received this dividend, resulting in an annualized dividend yield of 1.4% and a payout ratio of 25.22%.
Recent insider trading reflects a mix of activity at eBay. Senior Vice President Cornelius Boone sold 4,462 shares on December 18 at an average price of $83.94, totaling approximately $374,540.28. Following this transaction, Boone holds 91,921 shares valued at about $7,715,848.74. Similarly, Senior Vice President Julie A. Loeger sold 2,896 shares on December 11 at an average price of $82.44, for a total of $238,746.24. Over the last 90 days, insiders have sold a total of 60,896 shares worth $5,051,424.
Institutional investors continue to hold a significant stake in eBay. Approximately 87.48% of the stock is owned by institutional investors and hedge funds. Notable recent transactions include Miracle Mile Advisors LLC, which increased its holdings by 0.4% in the third quarter, now owning 29,151 shares valued at $2,651,000. Other investment firms, such as Garrett Wealth Advisory Group LLC and Groupe la Francaise, have also adjusted their positions in eBay.
Founded in 1995 and headquartered in San Jose, California, eBay has evolved from a basic auction site into a comprehensive e-commerce platform, facilitating the sale of new, used, and collectible goods across various categories.
