Recent insider trends for eBay Inc. (NASDAQ:EBAY) have caught the attention of investors. Insider data is useful because it can reveal what a company’s executives and largest shareholders feel about a stock. In this case, the data has some interesting things to say about how EBAY might perform in the future.
Institutions own 89.32% of eBay Inc. (EBAY)’s shares. The total value of these holdings, in millions, is $39,684. Among active positions in the latest quarter, 407 holders increased their positions by a total of 61.99 million shares, 383 holders decreased the positions by a total of 66.02 million shares, and 138 holders held their positions. This works out to a net decrease in ownership of 4.03 million shares, and suggests that institutions are feeling bearish about the stock.
Among new and sold out positions, 121 holders initiated new positions by a total of 10.25 million shares and 63 holders exited their positions by a total of 11.24 million shares. This nets out to a decrease of 990518 shares and is another bearish sign for EBAY.
In the last three months, insiders executed a total of 29 trades. 4 of these were buys and 25 were sells. Insider ownership decreased by a total of 843282 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 86 sells, and ownership decreased by a net of 13.51 million shares.
Comparing the number of shares sold short over time is a method analysts often use to get a reading on investor sentiment. eBay Inc. (NASDAQ:EBAY)’s short interest is 31.11 million shares, or 3.16% of the float. This represents a decrease of -5% 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.
Given what the insider ownership patterns are saying, it makes sense to consider the technicals to see if these pieces of information reach the same conclusion about the outlook for EBAY. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that EBAY is a Weak buy, which implies that EBAY is expected to outperform 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 undervalued.