eBay Inc. (NASDAQ:EBAY) shares traded lower over the last trading session, losing -0.28% on 12/08/20. The shares fell to a low of $49.28 before closing at $49.89. Intraday shares traded counted 7.03 million, which was 21.61% higher than its 30-day average trading volume of 8.97M. EBAY’s previous close was $50.03 while the outstanding shares total 696.00M. The firm has a beta of 1.25, a 12-month trailing P/E ratio of 15.82, and a growth ratio of 0.88. The stock’s Relative Strength Index (RSI) is 47.24, with weekly volatility at 2.39% and ATR at 1.59. The EBAY stock’s 52-week price range has touched low of $26.02 and a $61.06 high.
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 $33.93 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 963.0 million on their books with 17.0 million 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 6.74 billion total, with 3.84 billion as their total liabilities.
EBAY were able to record 1.33 billion as free cash flow during the Q3 2020 quarter of the year, this saw their quarterly net cash flow reduce by 123.0 million. In cash movements, the company had a total of 1.66 billion 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 Q3 2020 quarter of the year, eBay Inc. recorded a total of 2.61 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 20.07% coming in sequential stages and their sales for the Q3 2020 quarter reducing by -9.94%.
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 656.0 million trying to sell their products during the last quarter, with the result yielding a gross income of 1.95 billion. This allows shareholders to hold on to 696.00M with the recently reported earning now reading 0.94 cents per share. This is a figure that compared to analyst’s prediction for their Q3 2020 (0.72 cents a share).
Having a look at the company’s valuation, the company is expected to record 2.97 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, VP, Chief Accounting Officer, Doerger Brian J. sold 4,670 shares of the company’s stock in a transaction that recorded on Nov 24. The sale was performed at an average price of 50.78, for a total value of 237,143. As the sale deal closes, the SVP, Chief Product Officer, Thompson Pete now sold 2,094 shares of the company’s stock, valued at 104,700. Also, SVP, General Counsel & Sec., Huber Marie Oh sold 8,452 shares of the company’s stock in a deal that was recorded on Nov 09. The shares were price at an average price of 48.03 per share, with a total market value of 405,950. Following this completion of acquisition, the SVP, Chief People Officer, Yetto Kristin A now holds 5,148 shares of the company’s stock, valued at 247,258. In the last 6 months, insiders have changed their ownership in shares of company stock by 3.50%.
12 out of 33 analysts covering the stock have rated it a Buy, while 20 have maintained a Hold recommendation on eBay Inc.. 0 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 $62.65.