Shares of eBay Inc. (NASDAQ:EBAY) recorded -0.52% loss during trading session on January 11th, 2019. The script traded as low as $29.42 and last traded at $30.41. 13.06 million shares changed exchanged hands during trading, an increase of 6.23% from the 30-day average session volume of 13.93M shares. The firm had previously closed at $30.57. The company has $967.89M outstanding shares, a price-to-earnings ratio of 13.52, price-to-earnings-growth ratio of 2.81and a beta of 1.27. The company has a RSI of 62.27, ATR of 0.85 and a volatility of 2.58% this week. EBAY has a 52 week low price of $26.01 and a 52 week high price of $46.99.
Investors have identified the tech 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 29.43B, 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 2.09 billion on their books with 225 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 0 total, with 0 as their total liabilities. This figure have given the company a good sense of viability under numerous contexts.
EBAY were able to record 904 million as free cash flow during the recently reported quarter of the year, this saw their quarterly net cash flow reduce by 39 million. In cash movements, the company had a total of 1.43 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 third quarter of the year, eBay Inc. recorded a total of 2.65 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 0.06% coming in sequential stages and their sales for the third quarter reducing by 0.00%.
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 608 million trying to sell their products during the last quarter, with the result yielding a gross income of 2.04 billion. This allows shareholders to hold on to 967.89M with the revenue now reading 740 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter (0.50 cents a share).
Is the stock of EBAY attractive?
Having a look at the company’s valuation, the company is expected to record 2.06 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.
In related news, Director SWAN ROBERT HOLMES bought 17,787 shares of the company’s stock in a transaction that recorded on January 2nd, 2019. The purchase was performed at an average price of 28.21, for a total value of 501,766. As the purchase deal closes, the SVP, EMEA SWAN ROBERT HOLMES now sold 15,631 shares of the company’s stock, valued at 460,949. Also, SVP, EMEA Lee Jae Hyun sold 18,021 shares of the company’s stock in a deal that was recorded on November 28th, 2019. The shares were sold at an average cost of 29.00 per share, with a total market value of 121,459. Following this completion of disposal, the SVP, APAC now holds 18,283 shares of the company’s stock, valued at 522,528. In the last 6 months, insiders have changed their ownership in shares of company stock by 4.90%.
8 out of 37 analysts covering the stock have rated it a Buy, while 20 have maintained a Hold recommendation on eBay Inc. stock. 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 $36.24.