eBay Stock Eyes Highest Close Since October

eBay expanded its stock buyback plan and upped its Q1 guidance

Managing Editor
Feb 14, 2020 at 9:48 AM
facebook twitter linkedin

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.


Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 



Special Offers from Schaeffer's Trading Partners