eBay Inc. (EBAY): What’s Behind The Signals?

A handful of technical analysis tools are suggesting that eBay Inc. (NASDAQ:EBAY) overall gets 40% Sell rating. The stock is also flashing a Sell from the Barchart TrendSpotter trading system. Traders hoping to speculate on the EBAY’s short-term trajectory should know that short terms indicators for the stock averaged 20% Sell with an average daily trading volume over the past 20 days at 13679295 shares. EBAY stock has overall a 0.25% Sell signal considering medium term indicators and the 50-day average daily volume remained almost 14058568 shares. It’s also worth noting that the stock, whose average daily volume over the 100 days prior to this writing was 12193267 shares, is 67% Sell on the basis of long term indicators.

The share price is currently staying around the first support level of $28.98. Below this, the next support is placed in the zone of $28.49. Till the time, the EBAY stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 49.79 on daily chart, which may remain a cause for concern. If the price breaks below $28.49 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $29.75 mark may result into a pull-back move towards $30.03 level.

eBay Inc. (EBAY) is projected to climb by 25.52 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $52-month high price target. This represents a whopping 76.45 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $34, which represents a return potential of 15.37 percent when compared to the closing price of the stock of $29.47 on Thursday, December 06. The lowest price target for the stock is $30 — slightly more than 1.8 percent from EBAY’s current share price.

Here’s a rundown of insider trading activity for sense of eBay Inc. (NASDAQ:EBAY). The earliest insider trade took place on 11/30/2018. Lee Jae Hyun parted with a total of 33.65 thousand shares of company at average share price of $29.23. The total for the sales was set at $983.65 thousand. After this transaction, the SVP, EMEA account balance stood at 105.83 thousand shares. The stock grew 0.82 percent since that insider sale. On 11/27/2018, Park Joo Man, SVP, APAC, sold 18.28 thousand shares at a price per share of $28.58. This removed 522.53 thousand shares from the insider’s fortune and the stock saw a 3.11 percent rally in value since the news became public. This transaction left 99.17 thousand shares in the SVP, APAC account. On 11/26/2018, Director Omidyar Pierre M performed a sale transaction worth $1.04 million. This sale at $28.82 each has eliminated 36 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded 2.26 percent increase since the transaction was reported. The insider now is left with 45.4 million shares remaining in the account. Doerger Brian J., who performs the VP, Chief Accounting Officer job, sold 3.53 thousand shares for $99.47 thousand. The disposal occurred on 11/20/2018 was priced at $28.21 per share. The share price soared 4.47 percent since the reporting date. Doerger Brian J. now left with a stake of 37.66 thousand EBAY stock worth $1.11 million after the insider selling.

EBAY shares accumulated 0.21 points or 0.72 percent on Thursday to $29.47 with a heavy trade volume of 15.347 million shares. After opening the session at $28.88, the shares went as high as $29.54 and as low as $28.77, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $28.1 billion and now has 952.18 million shares outstanding. eBay Inc. (EBAY) stock has lost -0.57 percent of market value in 21 trading days.

Analysts at UBS lifted target price for shares of eBay Inc. (NASDAQ:EBAY) but repeated their Buy recommendation for the stock in their opinion released on October 31. The price target has been raised from $44 to $42. The Benchmark Company analysts again handed out a Buy rating to EBAY stock but they lifted target price for the shares in a flash note to investors on October 31. The price target has been raised from $50 to $41. The Benchmark Company, analysts launched coverage of EBAY stock with a Buy rating, according to their flash note to investors on October 31. Analysts at RBC Capital Mkts are sticking to their Sector Perform recommendation. However, on October 31, they lifted target price for these shares to $31 from $34. Analysts at RBC Capital Mkts, made their first call for the stock with a Sector Perform rating, according to a research note that dated back to October 31.

EBAY stock has a trailing 3-year beta of 1.36, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was $2.25 a share in the trailing twelve months. The stock’s value has fallen -21.91 percent year to date (YTD) against a decline of -19.94 percent in 12 month’s time. The company’s shares still trade -37.28 percent away from its 1-year high of $46.99 and 11.8 percent up from 52-week low of $26.36. The average consensus rating on the company is 2.4, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.

Shares of eBay Inc. (EBAY) are trading at a P/E ratio of 5.83 times earnings reported for the past 12 months. The industry EBAY operates in has an average P/E of 36.8. Its P/E ratio went as low as 4.66X and as high as 17.22 over the 5-year span. Further, it is sporting a 2.68 on the Price-to-Sales ratio. Compare this with the industry average P/S of 8.54. 77.5 percent is the gross profit margin for eBay Inc. and operating margin sits at 21 percent. Along with this, the net profit margin is -7.9 percent.

EBAY will be declaring its Q4 financial results on January 23. Analysts are forecasting revenue to climb 9.8 percent to $2.87B in the next fiscal quarter, while earnings are seen soaring by nearly 15.25 percent to $0.68 per share. History has shown that shares in eBay Inc. have gone up on 20 different earnings reaction days and are predicted to add 0.05 percent when the company reports upcoming earnings. In last reported earnings results, it earned $0.56 per share, better than the $0.54, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $2.65B, in line with the $2.65B analysts expected. Earnings are estimated to increase by -69.2 percent this year, 11.85 percent next year and continue to increase by 11.57 percent annually for the next 5 years.