eBay Stock on the Rise After Upgrade

The company is close above its 20-day moving average for the first time in a month

Deputy Editor
Apr 6, 2020 at 10:32 AM
facebook X logo linkedin


Ebay Inc (NASDAQ: EBAY) is joining in on the broad market rally today, up 4.5% to trade at $30.70 at last check. This comes after Guggenheim upgraded the "increasingly defensive" EBAY stock from "neutral" to "buy," citing the company's valuation and minimal inventory risk.

Since mid-February highs just below $40, Ebay has careened to an annual low on March 23, only to see the subsequent rally halted by its 20-day moving average around $31. Today it looks as though EBAY is on its way to topple that trendline on a closing basis for the first time in a month, though the equity is still down 15% year-to-date.

Analysts are bearish coming into today with 13 lukewarm holds and one "sell" and "strong sell" each out of 23 in coverage. eBay's 12-month consensus target price of $38.34 is a 30.4% premium to current levels. 

Shorts have made a drastic turnaround lately, with short interest up 78.6% in the last two reporting periods. The 47.25 million shares sold short accounts for a healthy 6.2% of the stock's available float, and would take 3.6 days to cover at EBAY's average pace of trading. In other words, there's ample room for a short squeeze to push the stock higher.

It's worth noting that eBay's Schaeffer's Volatility Scorecard (SVS) sits at a low 8, revealing that EBAY's stock has tended to fall beneath traders' volatility expectations during the past year.

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI