eBay (NASDAQ:EBAY) Shares Down 4.7% – Should You Sell?

eBay Inc. (NASDAQ:EBAY) shares were down 4.7% during trading on Monday . The stock traded as low as $109.89 and last traded at $108.6330. Approximately 1,551,519 shares were traded during trading, a decline of 69% from the average session volume of 4,976,215 shares. The stock had previously closed at $114.01.

eBay News Summary

Here are the key news stories impacting eBay this week:

• Positive Sentiment: eBay’s upcoming second-quarter results are expected to show steady growth, supported by artificial-intelligence tools, advertising, recommerce and strength in selected product categories. These initiatives could help offset international-market headwinds. EBAY to Report Q2 Earnings: What’s in the Cards for the Stock?
• Neutral Sentiment: Demand for scarce 70mm IMAX tickets for “The Odyssey” has driven some resale prices on eBay as high as $2,000. The story highlights marketplace engagement and the platform’s role in ticket resale, but it is unlikely to materially affect financial results. ‘A hidden gem’: Odyssey fans are shelling out up to $2,000 to buy 70mm IMAX tickets on eBay
• Neutral Sentiment: Institutional positioning was mixed, with 548 investors adding eBay shares and 572 reducing positions in the latest quarter. Analysts’ reported median price target is $110, while prior ratings cited in the report were favorable. eBay Slides as Investors Weigh New Cross-Border Trade Friction
• Negative Sentiment: Wells Fargo downgraded eBay to Underweight from Equal Weight following concerns about the Depop acquisition, rising competition from Vinted and the effect of investment spending on near-term profitability. Bernstein separately maintained a Hold rating with a $115 target. eBay Stock Downgraded After Depop Acquisition
• Negative Sentiment: The European Union’s €3 customs duty on certain low-value parcels could make international transactions more expensive and complicated, potentially reducing buyer demand or seller activity on eBay’s cross-border marketplace. eBay Slides as Investors Weigh New Cross-Border Trade Friction
• Negative Sentiment: Reports also highlighted eBay’s $56 million harassment-related settlement, adding legal and reputational overhang, while disclosed insider activity showed sales and no purchases over the past six months. ‘Crush this lady’: how eBay harassment campaign led to $56mn payout

Analyst Ratings Changes

Several research analysts have recently weighed in on EBAY shares. Wedbush began coverage on eBay in a research note on Thursday, July 16th. They issued an “outperform” rating and a $135.00 price target for the company. JPMorgan Chase & Co. lifted their price objective on eBay from $87.00 to $100.00 and gave the stock a “neutral” rating in a report on Thursday, April 30th. Bank of America boosted their target price on eBay from $102.00 to $110.00 and gave the stock a “neutral” rating in a research report on Tuesday, April 21st. Truist Financial raised their price target on shares of eBay from $94.00 to $105.00 and gave the company a “hold” rating in a report on Monday, May 4th. Finally, Sanford C. Bernstein reissued a “market perform” rating and set a $115.00 price objective on shares of eBay in a report on Monday. Fourteen analysts have rated the stock with a Buy rating, seventeen have issued a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of “Hold” and an average price target of $110.58.

eBay Stock Down 5.1%

The company has a quick ratio of 1.22, a current ratio of 1.22 and a debt-to-equity ratio of 1.36. The company’s 50 day moving average price is $111.38 and its two-hundred day moving average price is $101.09. The stock has a market cap of $48.05 billion, a P/E ratio of 24.52, a P/E/G ratio of 2.50 and a beta of 1.37.

Insiders Place Their Bets

In other eBay news, SVP Mazen Rawashdeh sold 1,919 shares of the firm’s stock in a transaction on Wednesday, June 17th. The shares were sold at an average price of $108.51, for a total value of $208,230.69. Following the completion of the transaction, the senior vice president owned 32,124 shares of the company’s stock, valued at approximately $3,485,775.24. This trade represents a 5.64% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Jordan Douglas Bradle Sweetnam sold 863 shares of the business’s stock in a transaction that occurred on Thursday, June 18th. The stock was sold at an average price of $109.17, for a total value of $94,213.71. Following the sale, the senior vice president owned 34,533 shares of the company’s stock, valued at $3,769,967.61. The trade was a 2.44% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 76,012 shares of company stock worth $8,747,852 over the last 90 days. Company insiders own 0.67% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in EBAY. Cedar Mountain Advisors LLC grew its stake in shares of eBay by 128.9% in the first quarter. Cedar Mountain Advisors LLC now owns 277 shares of the e-commerce company’s stock worth $25,000 after acquiring an additional 156 shares in the last quarter. Cassaday & Co Wealth Management LLC purchased a new stake in shares of eBay during the 1st quarter worth $26,000. Abound Financial LLC purchased a new stake in shares of eBay during the 4th quarter worth $26,000. High Point Wealth Management LLC acquired a new position in shares of eBay during the fourth quarter worth $26,000. Finally, Jessup Wealth Management Inc acquired a new position in shares of eBay during the fourth quarter worth $27,000. Institutional investors and hedge funds own 87.48% of the company’s stock.

About eBay

eBay Inc is a global e-commerce company that operates an online marketplace connecting individual consumers and businesses for the sale and purchase of new, used and collectible goods. Founded in 1995 by Pierre Omidyar and headquartered in San Jose, California, eBay grew from its early auction-style site into a diversified platform offering both auction-format listings and fixed-price “Buy It Now” transactions. The company completed an initial public offering in the late 1990s and has since evolved its platform and services to support a broad range of product categories and buyer preferences.

The company’s core business centers on its marketplace platform, which provides listing, search and transaction capabilities for millions of items across consumer goods, electronics, fashion, collectibles and more.