Virginia Retirement Systems has increased its stake in eBay Inc. (NASDAQ: EBAY) by an impressive 27.7% during the third quarter of 2023. According to HoldingsChannel.com, the institutional investor now holds 1,079,908 shares, having acquired an additional 234,000 shares in this period. The total value of Virginia Retirement Systems’ holdings in the e-commerce giant is approximately $98.2 million based on their latest filing with the Securities and Exchange Commission.
This development is part of a broader trend among institutional investors, many of whom have recently made significant adjustments to their positions in eBay. For instance, Princeton Global Asset Management LLC ramped up its holdings by an astounding 433.9% in the second quarter, resulting in ownership of 331 shares valued at $25,000. Other notable investors include GFG Capital LLC, which purchased a new stake valued at around $28,000, and Sumitomo Mitsui Financial Group Inc., increasing its stake by 155.3%.
The institutional investor landscape shows that approximately 87.48% of eBay’s stock is now owned by such entities. Analysts have responded to these changes with varying ratings on the stock. For example, Stifel Nicolaus recently reduced its price target for eBay from $89.00 to $88.00. Meanwhile, Truist Financial raised its target from $86.00 to $92.00, maintaining a “hold” rating.
eBay’s Recent Performance and Forecast
eBay’s stock price opened at $87.10 on Wednesday, reflecting a slight decline of 0.7%. The company has demonstrated resilience, with its recent quarterly earnings report showcasing earnings per share (EPS) of $1.36 for the quarter ended October 29, 2023, surpassing expectations of $1.33 by $0.03. The e-commerce platform reported a revenue of $2.82 billion, exceeding analysts’ projections of $2.73 billion.
eBay also provided guidance for the fiscal year 2025, projecting earnings between $4.090 and $4.140 per share, with a fourth-quarter estimate ranging from $1.310 to $1.360 per share. Analysts predict an EPS of 3.86 for the current fiscal year, indicating a steady growth trajectory.
The company’s stock performance has shown volatility over the past year, with a 52-week low of $58.71 and a high of $101.15. As of now, eBay maintains a market capitalization of $39.37 billion and a price-to-earnings ratio of 18.93.
Dividends and Insider Transactions
In addition to its impressive earnings, eBay has also announced a quarterly dividend of $0.29 per share, which was paid on December 12, 2023. This represents an annualized dividend of $1.16 and a yield of 1.3%. The company’s payout ratio is currently at 25.22%.
In recent insider trading activity, Senior Vice President Julie A. Loeger sold 2,896 shares at an average price of $82.44, amounting to a total of $238,746.24. Following this transaction, she retains 55,990 shares valued at approximately $4.62 million. Another senior vice president, Mazen Rawashdeh, also sold 1,920 shares for around $157,248.00, reducing his ownership by 25.05%.
In the last ninety days, eBay insiders have sold a total of 60,896 shares worth about $5.05 million. This insider activity indicates a level of market engagement that may influence investor sentiment moving forward.
Founded in 1995 by Pierre Omidyar, eBay has evolved from a simple auction platform to a comprehensive e-commerce marketplace. Headquartered in San Jose, California, the company continues to connect consumers and businesses for the sale of both new and used goods, reflecting its adaptability in a rapidly changing market. As investors closely monitor these developments, eBay’s strategic maneuvers and financial performance will likely remain in the spotlight.
