SunTrust Banks Inc. reiterated their hold rating on shares of eBay Inc. (NASDAQ:EBAY) in a report issued on Monday. The firm currently has a $33.00 price target on the e-commerce company’s stock, up from their prior price target of $30.00.
“Bob” Peck sees results largely in line with the Street while expressing confidence in the turnaround of the company.Following are Peck’s key estimates for the third quarter:”GMV at $20.4 billion, up ~4 percent YoY and versus the Street at $20.3 billion.””Revenue of $2.185 billion, in line with consensus, and versus guidance of $2.16–$2.19 billion.””Non-GAAP EPS of $0.44, versus guidance of $0.42–$0.44 and Street at $0.44.”The analyst pointed out a recent data of ChannelAdvisor, suggesting U.S. GMV growth in the third quarter may have picked up modestly both sequentially and versus the year ago quarter.The fixed price business, which represents more than 80 percent of the retail marketplaces GMV, increased on a year-over-year basis for ChannelAdvisor’s clients, reversing the declining trend during the past four months.Related Link: EBay Acquires Search Tech Company Corrigon Ltd”We are optimistic on the turnaround given the large base of buyers and sellers, and eBay’s dominance within the long-tail, but acknowledge that much remains to be done even as competition is increasing,” Peck wrote in a note.The analyst noted that close to 50 percent of unit sales on Amazon.com, Inc. (NASDAQ: AMZN) are by third party (3P) sellers, who also benefit from about 50 percent of U.S. households being Prime members and the “Fulfilled by Amazon” program.In addition, Wal-Mart Stores, Inc. (NYSE: WMT) recently acquired Jet.com to bolster its online efforts, and Facebook Inc (NASDAQ: FB) launched Marketplace, which can all support 3P sellers.According to Peck, eBay still needs to reposition the brand, reignite the buyer acquisition flywheel and arrest the decline in the C2C platform, which, according to management, “will take time to yield material results.”On the positive note, Peck sees scope for rerating once visibility improves, given: “1) a leveraged equity shrink can create significant shareholder value, 2) disciplined M&A, and 3) shareholder-friendly management.”That said, the company has to deal with modest growth in core business, stiff competition and tough from StubHub.”While much remains to be done, we remain cautiously optimistic that growth could reaccelerate in the near-to-mid term,,” the firm’s analyst wrote.
Other analysts have also issued reports about the stock. Robert W. Baird restated an outperform rating and set a $35.00 price objective on shares of eBay in a research note on Saturday, October 8th. Canaccord Genuity restated a hold rating and set a $28.00 price objective on shares of eBay in a research note on Tuesday, October 4th. Pacific Crest lowered shares of eBay to a sell rating in a research note on Saturday, October 1st. Deutsche Bank AG upgraded shares of eBay from a hold rating to a buy rating and raised their price objective for the company from $30.00 to $40.00 in a research note on Wednesday, September 28th. Finally, JPMorgan Chase & Co. restated a hold rating and set a $34.00 price objective on shares of eBay in a research note on Tuesday, September 27th. Three analysts have rated the stock with a sell rating, twenty-two have given a hold rating, sixteen have assigned a buy rating and one has given a strong buy rating to the company’s stock. eBay presently has an average rating of Hold and a consensus target price of $33.45.
Shares of eBay (NASDAQ:EBAY) opened at 31.50 on Monday. The company’s 50 day moving average is $31.97 and its 200-day moving average is $27.35. The stock has a market capitalization of $35.56 billion, a PE ratio of 19.36 and a beta of 1.17. eBay has a 52 week low of $21.51 and a 52 week high of $33.19.
eBay (NASDAQ:EBAY) last issued its quarterly earnings results on Wednesday, July 20th. The e-commerce company reported $0.43 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.42 by $0.01. eBay had a net margin of 22.00% and a return on equity of 29.12%. The company earned $2.23 billion during the quarter, compared to analysts’ expectations of $2.17 billion. During the same period last year, the company posted $0.42 EPS. eBay’s revenue was up 5.7% on a year-over-year basis. On average, equities analysts predict that eBay will post $1.89 earnings per share for the current year.
In related news, Director Robert Holmes Swan sold 50,000 shares of the stock in a transaction that occurred on Monday, July 25th. The shares were sold at an average price of $30.65, for a total value of $1,532,500.00. Following the completion of the transaction, the director now directly owns 425,288 shares of the company’s stock, valued at approximately $13,035,077.20. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, SVP Jae Hyun Lee sold 11,768 shares of the stock in a transaction that occurred on Tuesday, July 26th. The shares were sold at an average price of $31.00, for a total transaction of $364,808.00. Following the completion of the transaction, the senior vice president now directly owns 120,977 shares of the company’s stock, valued at $3,750,287. The disclosure for this sale can be found here. Company insiders own 7.40% of the company’s stock.
Several institutional investors have recently made changes to their positions in EBAY. AMP Capital Investors Ltd raised its position in shares of eBay by 18.6% in the first quarter. AMP Capital Investors Ltd now owns 1,632,449 shares of the e-commerce company’s stock valued at $39,243,000 after buying an additional 255,722 shares during the last quarter. Cullen Frost Bankers Inc. raised its position in shares of eBay by 3.4% in the second quarter. Cullen Frost Bankers Inc. now owns 795,774 shares of the e-commerce company’s stock valued at $18,629,000 after buying an additional 25,907 shares during the last quarter. Davis R M Inc. raised its position in shares of eBay by 36.4% in the second quarter. Davis R M Inc. now owns 12,000 shares of the e-commerce company’s stock valued at $281,000 after buying an additional 3,200 shares during the last quarter. Zurich Insurance Group Ltd FI bought a new position in shares of eBay during the first quarter valued at approximately $2,887,000. Finally, Creative Planning raised its position in shares of eBay by 19.2% in the second quarter. Creative Planning now owns 22,906 shares of the e-commerce company’s stock valued at $536,000 after buying an additional 3,683 shares during the last quarter. 82.00% of the stock is owned by hedge funds and other institutional investors.
eBay Inc (eBay) is a commerce company, which operates through its Marketplace, StubHub and Classifieds platforms. The Company helps in enabling commerce on its platforms for buyers and sellers online. The Company has an open source platform that provides software developers and merchants an access to its application programming interfaces for developing software and solutions for commerce.
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