Q2 STOCKS TO BUY

eBay Stock Inching Higher After Board of Directors Shakeup

The equity is already up over 46% this year

Digital Content Manager
Sep 11, 2020 at 11:07 AM
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The shares of eBay Inc (NASDAQ:EBAY) are up 0.3% at $52.49 at last check, after the e-commerce giant announced changes to its board of directors. Elliott Management's Jesse Cohn has resigned, while eBay founder Pierre Omidyar will step back from board responsibilities to become director emeritus. Meanwhile, LinkedIn executive Mohak Shroff and Carol Hayles, a former chief financial officer at CIT Group, will be joining the board, which is now composed of 13 directors, 12 of whom are independent. 

Over the last couple of months, the security has been cooling off from its all-time-high of $61.06 on July 13. That pullback found support at EBAY's 100-day moving average though, and the stock has still maintained a 46% lead in 2020. The equity's current perch is also double its March 23 two-year low.

Analysts are relatively split towards the stock, with 13 of the 24 in coverage carrying a tepid "hold" rating, and the remaining 11 sporting a "strong buy." Meanwhile, the equity's 12-month consensus target price of $61.75 is a whopping 17.7% premium to current levels.

In the options pits, however, there seems to be a clear preference for calls. In fact, 133,235 calls were were exchanged in the past 50 days, compared to just 46,304 puts. The resultant call/put volume ratio of 2.88 ranks in the elevated 71st percentile of eBay stock's annual range, implying a greater-than-usual appetite for calls in the last 10 weeks.

 

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