Ebay SVP Edward Garcia sells $148,759 in stock

Published 18/03/2025, 22:20
© Reuters.

Edward O. Garcia, Senior Vice President and Chief Product Officer at eBay Inc. (NASDAQ:EBAY), sold shares worth $148,759 according to a recent SEC filing. The sales occurred on March 17, 2025, with prices ranging from $66.09 to $67.78 per share. With eBay trading at a P/E ratio of 16.4 and showing impressive gross profit margins of 72%, InvestingPro analysis suggests the stock is currently undervalued.

The transactions are part of a Rule 10b5-1 trading plan, which Garcia adopted in December 2024. This allows executives to set up a predetermined plan to sell company stock at a later date, often to avoid accusations of insider trading.

In addition to the sales, Garcia acquired shares through the exercise of restricted stock units (RSUs) on March 15, 2025. These RSUs were converted into common stock without any cash transaction, contributing to his post-transaction ownership of 75,445 shares.

The filing also disclosed that Garcia disposed of shares for tax purposes, with a total value of $1,733,706, at a price of $65.28 per share. This transaction was part of the standard process for handling vested RSUs.

Investors often scrutinize insider transactions for insights into executive sentiment about the company’s future performance. However, it’s important to consider that these transactions may be part of routine financial planning.

In other recent news, eBay’s fourth-quarter earnings report revealed a notable performance with an earnings per share (EPS) of $1.25, reflecting a 16% increase year-over-year and surpassing expectations by $0.05. However, the company’s revenue for the quarter was $2,579 million, a modest 1% increase year-over-year, falling $3 million short of the consensus estimate. CFRA analysts maintained a Buy rating with a $76.00 price target, emphasizing eBay’s strong performance in key areas like parts and accessories and luxury fashion. Meanwhile, Benchmark raised its price target to $75, citing eBay’s ability to meet or exceed key performance indicators (KPIs) for 2024, though expressing caution about the first quarter and 2025 outlook. Susquehanna increased its price target to $65.00 from $60.00, maintaining a Neutral rating due to the positive earnings report but acknowledging macroeconomic pressures. Stifel reiterated a Hold rating with a $63.00 target, noting eBay’s efforts to navigate global eCommerce challenges. Evercore ISI also adjusted its target to $63.00, maintaining an In Line rating, reflecting on eBay’s modest earnings beat and future expectations. These developments highlight eBay’s recent financial performance and strategic initiatives amid ongoing economic uncertainties.

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