eBay Inc. (NASDAQ:EBAY) Relative Strength Index (RSI) is 78.17, with weekly volatility at 1.92% and ATR at 1.02. The EBAY stock’s 52-week price range has touched low of $26.02 and a $43.33 high. Intraday shares traded counted 3.89 million, which was 72.75% higher than its 30-day average trading volume of 14.29M. Its shares traded higher over the last trading session, gaining 1.17% on 05/21/20. The shares fell to a low of $42.24 before closing at $42.97. EBAY’s previous close was $42.47 while the outstanding shares total 753.00M. The firm has a beta of 1.34, a 12-month trailing P/E ratio of 19.65, and a growth ratio of 2.01.
Investors have identified the Internet Retail company eBay Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $29.71 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
eBay Inc. (EBAY) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For EBAY, the company has in raw cash 880.0 million on their books with 1.01 billion currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on a decline. In terms of their assets, the company currently has 6248000000 million total, with 4673000000 million as their total liabilities.
EBAY were able to record 494.0 million as free cash flow during the third quarter of the year, this saw their quarterly net cash flow reduce by -97.0 million. In cash movements, the company had a total of 592.0 million as operating cash flow.
Potential earnings growth for eBay Inc. (EBAY)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the third quarter of the year, eBay Inc. recorded a total of 2.37 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with -1.64% coming in sequential stages and their sales for the third quarter reducing by -28.52%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 526.0 million trying to sell their products during the last quarter, with the result yielding a gross income of 1.85 billion. This allows shareholders to hold on to 753.00M with the revenue now reading 3.89 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter (0.61 cents a share).
Having a look at the company’s valuation, the company is expected to record 2.32 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on EBAY sounds very interesting.
Is the stock of EBAY attractive?
In related news, Interim CFO, CRING ANDREW JOHN sold 23,240 shares of the company’s stock in a transaction that recorded on May 19. The sale was performed at an average price of 43.00, for a total value of 999,320. As the sale deal closes, the SVP, International, Lee Jae Hyun now sold 41,393 shares of the company’s stock, valued at 1,759,203. Also, SVP, Chief People Officer, Yetto Kristin A sold 33,676 shares of the company’s stock in a deal that was recorded on May 07. The shares were price at an average price of 41.26 per share, with a total market value of 1,389,418. Following this completion of acquisition, the SVP, General Counsel & Sec., Huber Marie Oh now holds 19,166 shares of the company’s stock, valued at 790,088. In the last 6 months, insiders have changed their ownership in shares of company stock by 4.90%.
11 out of 31 analysts covering the stock have rated it a Buy, while 16 have maintained a Hold recommendation on eBay Inc.. 3 analysts has assigned a Sell rating on the EBAY stock. The 12-month mean consensus price target for the company’s shares has been set at $40.69.