The shares of eBay Inc (NASDAQ:EBAY) are up 0.9% to trade at $37.89 this morning, after the company announced it was raising its share buyback plan to $4.5 billion from $1.5 billion. The e-tail icon also disclosed a stronger-than-expected first-quarter guidance for 2020, which prompted a price-target hike from $51 to $47 at Credit Suisse.
The triple dose of positive headlines has eBay stock toppling its 200-day moving average and on track for its highest close since a late October bear gap. Thanks to some buyout rumors two weeks ago, EBAY is now up 13% in February and is cruising toward its fourth straight win.
A round of upgrades and/or price-target hikes could create more tailwinds for the equity. Of the 22 brokerages in coverage of EBAY, 16 rate it a "hold" or worse, while the consensus 12-month price target of $38.88 is a slim 4.5% premium to last night's closing perch at $37.60.
It's certainly an attractive time to be buying options premium on eBay, based on its Schaeffer's Volatility Index (SVI) of 21%, which ranks in the 9th percentile of its annual range. In other words, short-term EBAY options have priced in lower volatility expectations just 9% of the time over the last year.