eBay Inc (EBAY) Earnings Meet Expectations, Guidance Lags, Shares Fall

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It’s been a brutal after hours for shares of eBay Inc (NASDAQ:EBAY) today after the company reported their fourth quarter earnings and provided guidance for the current quarter and full year. Shares are down over 11% following the news.

eBay Inc (NASDAQ:EBAY) reported an EPS of $0.43 on the quarter, meeting analyst expectations, but it was the guidance for the current quarter and full year which seem to be be sending shares lower this afternoon. The company expects to earn between $1.82 to $1.87 per share in 2016 on $8.5 to $8.8 billion in revenue. Analysts were expecting the company to guide to $1.98 per share on $9 billion on revenue, however. Paypal, on the other hand reported better than expected earnings in their second quarter since they were spun off of ebay.The stock decreased 0.86% or $0.23 during the last trading session, hitting $26.42. About 18.53M shares traded hands or 68.30% up from the average. EBAY has risen 2.54% since June 22, 2015 and is uptrending. It has outperformed the S&P500 by 11.41%.

From a total of 24 analysts covering eBay Inc (NASDAQ:EBAY) stock, 7 rate it a “Buy”, 1 a “Sell”, and 16 a “Hold”. This means that 29% of the ratings are positive. The highest target price is $69 while the lowest target price is $27. The mean of all analyst targets is $32.13 which is 21.61% above today’s ($26.42) stock price. eBay Inc was the topic of 32 analyst reports since July 21, 2015 according to the firm StockzIntelligence Inc. Susquehanna initiated shares on January 15 with a “Positive” rating. JP Morgan maintained shares with a”Neutral” rating and a $32 target share price in their report from a September 24. TheStreet downgraded EBAY stock in a recent report from October 23 to a “Hold” rating. Cantor Fitzgerald downgraded the rating on September 10. Cantor Fitzgerald has a “Hold” rating and a $27 price target on shares. Finally, RBC Capital Markets maintained the stock with a “Sector Perform” rating in a report they issued on an October 22.

The institutional sentiment decreased to 0.79 in Q2 2015. It’s down 0.29, from 1.08 in 2015Q2. The ratio is negative, as 224 funds sold all their eBay Inc shares they owned while 294 reduced their positions. 71 funds bought stakes while 336 increased their total positions. Institutions now own 991.00 million shares which is 0.95% more than the previous share count of 981.68 million in 2015Q2.

Marlowe Partners Lp holds 10.41% of its total portfolio in eBay Inc, equating to 648,700 shares. Rit Capital Partners Plc owns 1.75 million shares representing 10% of their total US portfolio. Moreover, Junto Capital Management Lp has 5.96% of their total portfolio invested in the company, equating to 1.09 million shares. The United Kingdom-based Independent Franchise Partners Llp has a total of 5.88% of their portfolio invested in the stock. Clenar Muke Llc, a Australia-based fund reported 34.28 million shares owned.

Since March 8, 2015, the stock had 0 insider purchases, and 2 selling transactions for a total of $28.00 million in net activity. Swan Robert Holmes sold 494,634 shares worth $14.00M. Marks Alan Lee sold 17,881 shares worth $1.07M. Doerger Brian J. sold 1,000 shares worth $58,933. Donahoe John J sold 145,258 shares worth $8.56 million.

eBay Inc. is a global technology company. The company has a market cap of $32.18 billion. The Firm has created an open source platform that provides software developers and merchants access to its applications programming interfaces (APIs) to develop software and solutions for commerce. It has 13.38 P/E ratio. The Company’s divisions include Marketplaces and Payments.