eBay Stock Eyes Highest Close Since October

eBay expanded its stock buyback plan and upped its Q1 guidance

by Patrick Martin

Published on Feb 14, 2020 at 9:48 AM

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.


A Schaeffer's exclusive

11 Stocks to Buy Before Leap Day

Access your FREE insider report before it's too late!


 
 

Partnercenter


NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories


Why One Investor Is Betting $523,111 on This 1 Stock
This small, California-based company is pioneering breakthrough technology that is enabling companies to move vast quantities of data over the Internet at lightning speeds.
Sudden C-Suite Shuffle Weighs on Disney Stock
DIS is trading at its lowest point since April
Papa John's Stock Pivots Lower After Guidance Cut
The pizza maker's earnings and revenue topped forecasts, though
Why One Investor Is Betting $523,111 on This 1 Stock
This small, California-based company is pioneering breakthrough technology that is enabling companies to move vast quantities of data over the Internet at lightning speeds.