SunTrust Banks Inc. Reiterates Hold Rating for eBay Inc. (EBAY)
eBay Inc. (NASDAQ:EBAY)‘s stock had its “hold” rating reiterated by analysts at SunTrust Banks Inc. in a report released on Monday. They currently have a $33.00 price target on the e-commerce company’s stock. SunTrust Banks Inc.’s price target indicates a potential upside of 4.36% 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,”
Several other research firms have also commented on EBAY. Pacific Crest lowered shares of eBay to a “sell” rating in a report on Saturday, October 1st. Canaccord Genuity restated a “hold” rating and issued a $28.00 price target on shares of eBay in a report on Tuesday, October 4th. Goldman Sachs Group Inc. set a $34.00 price target on shares of eBay and gave the company a “buy” rating in a report on Thursday, September 8th. Axiom Securities boosted their price target on shares of eBay from $34.00 to $38.00 and gave the company a “buy” rating in a report on Tuesday, September 13th. Finally, Robert W. Baird reaffirmed an “outperform” rating and issued a $35.00 price objective on shares of eBay in a research report on Saturday, September 10th. Three analysts have rated the stock with a sell rating, twenty-two have given a hold rating, sixteen have given a buy rating and one has issued a strong buy rating to the company. The stock currently has a consensus rating of “Hold” and an average target price of $33.22.
Shares of eBay (NASDAQ:EBAY) traded up 1.27% on Monday, reaching $32.02. 1,417,637 shares of the company were exchanged. eBay has a 52 week low of $21.52 and a 52 week high of $33.19. The stock has a market capitalization of $36.15 billion, a price-to-earnings ratio of 19.68 and a beta of 1.17. The firm’s 50 day moving average price is $31.88 and its 200 day moving average price is $27.19.
eBay (NASDAQ:EBAY) last announced its quarterly earnings data on Wednesday, July 20th. The e-commerce company reported $0.43 earnings per share for the quarter, beating analysts’ consensus estimates 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 quarter last year, the business posted $0.42 EPS. The firm’s revenue for the quarter was up 5.7% on a year-over-year basis. Equities research analysts anticipate that eBay will post $1.89 EPS for the current year.
In other news, SVP Jae Hyun Lee sold 11,768 shares of the company’s stock in a transaction dated Tuesday, July 26th. The shares were sold at an average price of $31.00, for a total transaction of $364,808.00. Following the completion of the transaction, the senior vice president now owns 120,977 shares of the company’s stock, valued at approximately $3,750,287. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, VP Brian J. Doerger sold 23,958 shares of the company’s stock in a transaction dated Monday, July 25th. The shares were sold at an average price of $30.56, for a total transaction of $732,156.48. Following the transaction, the vice president now directly owns 48,605 shares of the company’s stock, valued at approximately $1,485,368.80. The disclosure for this sale can be found here. Company insiders own 7.40% of the company’s stock.
Several hedge funds and other institutional investors have recently bought and sold shares of EBAY. FMR LLC increased its position in eBay by 183.0% in the second quarter. FMR LLC now owns 21,402,518 shares of the e-commerce company’s stock worth $501,033,000 after buying an additional 13,838,953 shares in the last quarter. Wellington Management Group LLP boosted its position in eBay by 344.6% in the first quarter. Wellington Management Group LLP now owns 11,298,332 shares of the e-commerce company’s stock worth $269,578,000 after buying an additional 8,756,950 shares in the last quarter. Lazard Asset Management LLC boosted its position in eBay by 78.9% in the first quarter. Lazard Asset Management LLC now owns 16,144,360 shares of the e-commerce company’s stock worth $385,203,000 after buying an additional 7,117,937 shares in the last quarter. Magellan Asset Management Ltd boosted its position in eBay by 16.1% in the second quarter. Magellan Asset Management Ltd now owns 42,152,135 shares of the e-commerce company’s stock worth $986,781,000 after buying an additional 5,833,160 shares in the last quarter. Finally, Eaton Vance Management boosted its position in eBay by 279.0% in the second quarter. Eaton Vance Management now owns 5,687,842 shares of the e-commerce company’s stock worth $133,152,000 after buying an additional 4,187,045 shares in the last quarter. 82.00% of the stock is owned by institutional investors.
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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