eBay (EBAY) Board Authorizes Stock Repurchase Program
eBay (NASDAQ:EBAY) announced that its board has initiated a share buyback plan, which allows the company to repurchase $3.00 billion in shares on Thursday, July 20th, EventVestor reports. This repurchase authorization allows the e-commerce company to buy up to 7.5% of its shares through open market purchases. Shares repurchase plans are generally a sign that the company’s leadership believes its stock is undervalued.
Shares of eBay (NASDAQ EBAY) traded down 2.56% during mid-day trading on Friday, hitting $36.23. 9,075,978 shares of the stock traded hands. The company’s 50-day moving average price is $35.28 and its 200 day moving average price is $33.60. The company has a market capitalization of $39.21 billion, a PE ratio of 5.22 and a beta of 1.36. eBay has a 1-year low of $27.28 and a 1-year high of $37.48. eBay also was the target of some unusual options trading activity on Wednesday. Traders purchased 2,194 put options on the stock. This represents an increase of approximately 231% compared to the average volume of 663 put options.
eBay (NASDAQ:EBAY) last released its earnings results on Thursday, July 20th. The e-commerce company reported $0.45 earnings per share (EPS) for the quarter, hitting the Thomson Reuters’ consensus estimate of $0.45. The company had revenue of $2.33 billion during the quarter, compared to analyst estimates of $2.31 billion. eBay had a net margin of 86.31% and a return on equity of 20.44%. The firm’s quarterly revenue was up 4.4% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.43 EPS. Equities research analysts forecast that eBay will post $2.01 EPS for the current fiscal year.
A number of analysts have recently weighed in on the stock. Goldman Sachs Group, Inc. (The) reaffirmed a “buy” rating and set a $39.00 price target (up previously from $38.00) on shares of eBay in a report on Thursday, April 20th. Canaccord Genuity reaffirmed a “hold” rating and set a $32.00 price target (up previously from $31.00) on shares of eBay in a report on Thursday, April 20th. Atlantic Securities reaffirmed a “neutral” rating and set a $36.00 price target on shares of eBay in a report on Wednesday, May 31st. Robert W. Baird reaffirmed an “outperform” rating and set a $38.00 price target on shares of eBay in a report on Monday, June 12th. Finally, Vetr raised shares of eBay from a “hold” rating to a “buy” rating and set a $37.30 price target for the company in a report on Monday, June 12th. Two equities research analysts have rated the stock with a sell rating, twenty-one have issued a hold rating, sixteen have assigned a buy rating and one has assigned a strong buy rating to the stock. The stock has an average rating of “Hold” and a consensus price target of $36.18.
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In related news, SVP Stephen Fisher sold 33,008 shares of the stock in a transaction that occurred on Monday, April 24th. The shares were sold at an average price of $32.35, for a total value of $1,067,808.80. Following the completion of the sale, the senior vice president now directly owns 109,468 shares of the company’s stock, valued at approximately $3,541,289.80. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Robert Holmes Swan sold 25,000 shares of the stock in a transaction that occurred on Thursday, May 25th. The stock was sold at an average price of $35.00, for a total transaction of $875,000.00. Following the completion of the sale, the director now directly owns 286,562 shares of the company’s stock, valued at $10,029,670. The disclosure for this sale can be found here. Insiders sold a total of 85,712 shares of company stock valued at $2,877,612 over the last three months. 6.78% of the stock is currently owned by insiders.
eBay Company Profile
eBay Inc (eBay) is a commerce company, which operates through its Marketplace, StubHub and Classifieds platforms. The Company connects buyers and sellers around the world. Its platforms enable sellers around the world to organize and offer their inventory for sale, and buyers to find and purchase it.
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