eBay Inc. (EBAY) Stock Rating Reaffirmed by SunTrust Banks Inc.
eBay Inc. (NASDAQ:EBAY)‘s stock had its “hold” rating restated by SunTrust Banks Inc. in a report issued on Monday. They presently have a $33.00 target price on the e-commerce company’s stock. SunTrust Banks Inc.’s price target indicates a potential upside of 3.30% from the stock’s previous close.
The analysts wrote, “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,”
EBAY has been the subject of several other reports. Monness Crespi & Hardt boosted their price target on shares of eBay from $29.00 to $32.00 and gave the stock a “buy” rating in a research note on Thursday, July 21st. Goldman Sachs Group Inc. set a $34.00 price target on shares of eBay and gave the stock a “buy” rating in a research note on Thursday, September 8th. Deutsche Bank AG boosted their price target on shares of eBay from $28.00 to $30.00 and gave the stock a “hold” rating in a research note on Thursday, July 21st. Evercore ISI assumed coverage on shares of eBay in a research note on Monday, July 25th. They issued a “hold” rating and a $26.00 price target for the company. Finally, Royal Bank Of Canada boosted their price target on shares of eBay from $28.00 to $31.00 and gave the stock a “sector perform” rating in a research note on Thursday, July 21st. Three analysts have rated the stock with a sell rating, twenty-two have issued a hold rating, sixteen have given a buy rating and one has issued a strong buy rating to the company. The stock presently has a consensus rating of “Hold” and a consensus target price of $33.22.
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Shares of eBay (NASDAQ:EBAY) traded up 0.92% during mid-day trading on Monday, hitting $31.91. The stock had a trading volume of 2,861,295 shares. The firm has a market capitalization of $36.03 billion, a price-to-earnings ratio of 19.61 and a beta of 1.17. eBay has a 1-year low of $21.52 and a 1-year high of $33.19. The stock’s 50-day moving average is $31.88 and its 200 day moving average is $27.19.
eBay (NASDAQ:EBAY) last announced its earnings results on Wednesday, July 20th. The e-commerce company reported $0.43 earnings per share (EPS) for the quarter, topping the consensus estimate 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 analyst estimates of $2.17 billion. During the same period in the previous year, the business earned $0.42 earnings per share. The firm’s quarterly revenue was up 5.7% compared to the same quarter last year. Equities research analysts predict that eBay will post $1.89 EPS for the current fiscal year.
In related news, SVP Raymond J. Pittman sold 39,030 shares of eBay stock in a transaction dated Wednesday, August 31st. The shares were sold at an average price of $32.14, for a total transaction of $1,254,424.20. Following the completion of the transaction, the senior vice president now directly owns 32,738 shares of the company’s stock, valued at approximately $1,052,199.32. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Robert Holmes Swan sold 50,000 shares of eBay stock in a transaction dated Tuesday, August 30th. The stock was sold at an average price of $31.95, for a total transaction of $1,597,500.00. Following the transaction, the director now directly owns 375,928 shares of the company’s stock, valued at $12,010,899.60. The disclosure for this sale can be found here. Corporate insiders own 7.40% of the company’s stock.
Several institutional investors have recently added to or reduced their stakes in the company. AMP Capital Investors Ltd boosted its position in 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 worth $39,243,000 after buying an additional 255,722 shares in the last quarter. Cullen Frost Bankers Inc. boosted its position in eBay by 3.4% in the second quarter. Cullen Frost Bankers Inc. now owns 795,774 shares of the e-commerce company’s stock worth $18,629,000 after buying an additional 25,907 shares in the last quarter. Davis R M Inc. boosted its position in eBay by 36.4% in the second quarter. Davis R M Inc. now owns 12,000 shares of the e-commerce company’s stock worth $281,000 after buying an additional 3,200 shares in the last quarter. Zurich Insurance Group Ltd FI purchased a new position in eBay during the first quarter worth approximately $2,887,000. Finally, Creative Planning boosted its position in eBay by 19.2% in the second quarter. Creative Planning now owns 22,906 shares of the e-commerce company’s stock worth $536,000 after buying an additional 3,683 shares in the last quarter. 82.00% of the stock is owned by hedge funds and other institutional investors.
eBay Company Profile
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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