Recent insider trends for eBay Inc. (NASDAQ:EBAY) have caught the attention of investors. Analysts monitor insider data to understand the sentiment of a company’s largest and most important shareholders. EBAY’s insider trading patterns have some implications for where the stock might be headed.
Institutions own 86.24% of eBay Inc. (EBAY)’s shares. The total value of these holdings, in millions, is $33,960. Among active positions in the latest quarter, 301 holders increased their positions by a total of 58.72 million shares, 421 holders decreased the positions by a total of 67.71 million shares, and 139 holders held their positions. This works out to a net decrease in ownership of 8.99 million shares, and suggests that institutions are feeling bearish about the stock.
Among new and sold out positions, 61 holders initiated new positions by a total of 12.43 million shares and 54 holders exited their positions by a total of 11.96 million shares. This nets out to an increase of 470329 shares and is a bullish sign for EBAY.
In the last three months, insiders executed a total of 23 trades. 4 of these were buys and 19 were sells. Insider ownership decreased by a total of 2.7 million shares, which suggests that EBAY’s key executives are feeling less optimistic about the outlook for the stock. The data from the past twelve months tells a similar story: insiders executed 16 buys and 87 sells, and ownership decreased by a net of 13.31 million shares.
Analysts often look at short interest, or the number of shares currently being shorted by investors, to aid in their outlook for a particular stock. eBay Inc. (NASDAQ:EBAY)’s short interest is 30.41 million shares, or 3.00% of the float. This represents a decrease of -10% in the number of shares being shorted compared to the previous reading, and implies that investors felt less pessimistic about the stock during the past two weeks.
Ownership trends and trading patterns can be useful tools for predicting a stock’s performance, but it’s also important to consider the technicals in order to form a more comprehensive view. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that EBAY is a hold, which implies that EBAY is expected to perform in line with the market based on prior trading patterns.
Institutional ownership trends suggest that the stock is cheap and the insider trading data indicates that insiders are bearish. Technical indicators (also) suggest that eBay Inc. (NASDAQ:EBAY) is fairly valued.