eBay Inc. (NASDAQ:EBAY) insiders sold US$9.0m worth of stock suggesting impending weakness. - Simply Wall St

Summary

Over the past year, many eBay Inc. ( ) insiders sold a significant stake in the company which may have piqued investors' interest. When analyzing insider transactions, it is usually more valuable to know whether insiders are buying versus knowing if they are selling, as the latter sends an ambiguous message. However, when multiple insiders sell stock over a specific duration, shareholders should take notice as that could possibly be a red flag.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

Over the past year, many eBay Inc. ( ) insiders sold a significant stake in the company which may have piqued investors' interest. When analyzing insider transactions, it is usually more valuable to know whether insiders are buying versus knowing if they are selling, as the latter sends an ambiguous message. However, when multiple insiders sell stock over a specific duration, shareholders should take notice as that could possibly be a red flag.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

The Last 12 Months Of Insider Transactions At eBay

The Independent Director, Robert Swan, made the biggest insider sale in the last 12 months. That single transaction was for US$2.9m worth of shares at a price of US$73.15 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (US$47.87). So it may not shed much light on insider confidence at current levels.

Over the last year we saw more insider selling of eBay shares, than buying. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

NasdaqGS:EBAY Insider Trading Volume August 5th 2022

If you are like me, then you will not want to miss this free

eBay Insiders Are Selling The Stock

Over the last three months, we've seen significant insider selling at eBay. In total, VP & Chief Accounting Officer Brian Doerger sold US$533k worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.

Does eBay Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 0.3% of eBay shares, worth about US$71m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The eBay Insider Transactions Indicate?

An insider hasn't bought eBay stock in the last three months, but there was some selling. Despite some insider buying, the longer term picture doesn't make us feel much more positive. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that , and 1 of those can't be ignored...

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.

Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

eBay Inc. (NASDAQ:EBAY) insiders sold US$9.0m worth of stock suggesting impending weakness. - Simply Wall St
Photo Credit: Simply Wall St

eBay Australia Announces Price Changes for Australia Post Shipments Effective September 5 - eSeller365

eBay Australia is giving sellers an advance warning about rising postage rates that will go into effect on 5 September 2022. Australia Post will be increasing prices on some of it …

Read more here
eBay Australia Announces Price Changes for Australia Post Shipments Effective September 5 - eSeller365

eBay Is Developing Technology to Catch Bad Buyers - EcommerceBytes

eBay told sellers it’s working to protect them from bad buyers, though it also downplayed the scale of the problem. During the recent Seller Check-in event this month, eBay Senior …

Read more here
eBay Is Developing Technology to Catch Bad Buyers - EcommerceBytes

The VP & Chief Accounting Officer of eBay Inc. (NASDAQ:EBAY), Brian Doerger, Just Sold 63% Of Their Holding - Nasdaq

Some eBay Inc. (NASDAQ:EBAY) shareholders may be a little concerned to see that the VP & Chief Accounting Officer, Brian Doerger, recently sold a substantial US$595k worth of stock …

Read more here
The VP & Chief Accounting Officer of eBay Inc. (NASDAQ:EBAY), Brian Doerger, Just Sold 63% Of Their Holding - Nasdaq

On Resale Apps, Expensive Beauty Products Sell for Cheap. Is It Safe to Buy Them? - Allure

"I hate clutter," says Behnaz B. "A few years ago I bought the Dyson hairdryer for $500. I have the [Dyson] Airwrap now, so I'm getting rid of the hairdryer. I'm also getting rid o …

Read more here
On Resale Apps, Expensive Beauty Products Sell for Cheap. Is It Safe to Buy Them? - Allure

eBay and Etsy 'Shipping Tax' Takes Effect October 2nd - EcommerceBytes

eBay and Etsy charge a commission fee on shipping above and beyond payment-processing charges. As a result, when shipping carriers raise fees during the holidays, sellers end up pa …

Read more here
eBay and Etsy 'Shipping Tax' Takes Effect October 2nd - EcommerceBytes