“We remain NEUTRAL and could look to potentially become more constructive with our views if signs of GMV growth acceleration materialize. In 3Q, U.S. Marketplace GMV growth slowed +2%, below our expectation for +MSD-HSD% growth. PayPal’s 3Q18 report on 10/18 suggested eBay’s growth decelerated QoQ (Exhibit 3), and eBay’s result today confirmed this decelerating trajectory. In terms of new product-based experiences on the site, new users continue to respond well (improved conversion), but conversion gains have not materialized among existing eBay users. This has limited the company’s ability to scale new experiences. Increased marketing in 3Q also had a mixed impact, and coupled with the negative impact of a strong USD on the U.S. export business, growth decelerated.”,” the firm’s analyst wrote.
A number of other analysts have also weighed in on EBAY. Robert W. Baird lowered shares of eBay from an outperform rating to a sector perform rating in a research report on Wednesday, October 24th. TheStreet lowered shares of eBay from a b- rating to a c+ rating in a research report on Wednesday, October 24th. Benchmark restated a buy rating and issued a $50.00 target price on shares of eBay in a research report on Tuesday, October 16th. Monness Crespi & Hardt lowered shares of eBay from a buy rating to a neutral rating in a research report on Monday, October 22nd. Finally, Aegis restated a buy rating and issued a $44.00 target price on shares of eBay in a research report on Tuesday, October 23rd. Three investment analysts have rated the stock with a sell rating, eighteen have issued a hold rating and fourteen have given a buy rating to the company’s stock. The stock presently has an average rating of Hold and a consensus price target of $40.97.
eBay (NASDAQ:EBAY) last issued its earnings results on Tuesday, October 30th. The e-commerce company reported $0.56 earnings per share for the quarter, beating analysts’ consensus estimates of $0.54 by $0.02. eBay had a negative net margin of 7.93% and a positive return on equity of 23.65%. The firm had revenue of $2.65 billion for the quarter, compared to analyst estimates of $2.65 billion. During the same quarter last year, the business posted $0.48 earnings per share. The company’s quarterly revenue was up 6.0% on a year-over-year basis. Equities analysts anticipate that eBay will post 1.83 EPS for the current fiscal year.
In related news, SVP Jae Hyun Lee sold 26,204 shares of eBay stock in a transaction on Wednesday, August 29th. The shares were sold at an average price of $35.08, for a total transaction of $919,236.32. Following the completion of the transaction, the senior vice president now owns 128,457 shares of the company’s stock, valued at $4,506,271.56. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Also, VP Brian J. Doerger sold 4,811 shares of eBay stock in a transaction on Thursday, August 9th. The stock was sold at an average price of $34.05, for a total transaction of $163,814.55. Following the transaction, the vice president now directly owns 34,644 shares of the company’s stock, valued at approximately $1,179,628.20. The disclosure for this sale can be found here. Insiders have sold 103,994 shares of company stock valued at $3,571,245 in the last ninety days. Insiders own 6.78% of the company’s stock.
Hedge funds and other institutional investors have recently made changes to their positions in the stock. CSat Investment Advisory L.P. bought a new position in eBay during the second quarter worth $106,000. Valeo Financial Advisors LLC acquired a new stake in eBay in the second quarter worth $107,000. Nelson Van Denburg & Campbell Wealth Management Group LLC grew its holdings in eBay by 15,439.1% in the second quarter. Nelson Van Denburg & Campbell Wealth Management Group LLC now owns 3,574 shares of the e-commerce company’s stock worth $328,000 after purchasing an additional 3,551 shares during the period. NEXT Financial Group Inc acquired a new stake in eBay in the third quarter worth $130,000. Finally, Harel Insurance Investments & Financial Services Ltd. grew its holdings in eBay by 223.0% in the second quarter. Harel Insurance Investments & Financial Services Ltd. now owns 4,128 shares of the e-commerce company’s stock worth $150,000 after purchasing an additional 2,850 shares during the period. 84.50% of the stock is owned by institutional investors and hedge funds.
eBay Inc operates commerce platforms that connect various buyers and sellers worldwide. Its platforms enable sellers to organize and offer their inventory for sale; and buyers to find and purchase it virtually. The company's Marketplace platforms include its online marketplace at ebay.com and the eBay mobile apps; and StubHub platforms comprise its online ticket platform at stubhub.com, and the StubHub mobile apps and online ticket platform that connect fans with their favorite sporting events, shows, and artists, as well as enables them to buy and sell tickets.
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