Deutsche Bank AG Decreases Stock Position in PayPal Holdings, Inc. $PYPL

Deutsche Bank AG cut its holdings in PayPal Holdings, Inc. (NASDAQ:PYPL) by 17.6% in the fourth quarter, according to the company in its most recent disclosure with the SEC. The fund owned 7,875,530 shares of the credit services provider’s stock after selling 1,680,321 shares during the quarter. Deutsche Bank AG’s holdings in PayPal were worth $459,773,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors also recently added to or reduced their stakes in PYPL. Vanguard Group Inc. raised its position in PayPal by 6.5% during the fourth quarter. Vanguard Group Inc. now owns 90,376,927 shares of the credit services provider’s stock valued at $5,276,205,000 after acquiring an additional 5,534,462 shares in the last quarter. Rule One Partners LLC purchased a new position in PayPal during the fourth quarter valued at approximately $2,043,000. NEOS Investment Management LLC raised its position in PayPal by 47.8% during the third quarter. NEOS Investment Management LLC now owns 411,262 shares of the credit services provider’s stock valued at $27,579,000 after acquiring an additional 132,942 shares in the last quarter. Kovitz Investment Group Partners LLC raised its position in PayPal by 21.1% during the third quarter. Kovitz Investment Group Partners LLC now owns 463,701 shares of the credit services provider’s stock valued at $31,096,000 after acquiring an additional 80,744 shares in the last quarter. Finally, Capital Research Global Investors lifted its stake in shares of PayPal by 2.3% in the 3rd quarter. Capital Research Global Investors now owns 27,953,803 shares of the credit services provider’s stock valued at $1,874,637,000 after purchasing an additional 636,441 shares during the period. 68.32% of the stock is currently owned by hedge funds and other institutional investors.

PayPal Stock Down 1.8%

PayPal stock opened at $40.70 on Thursday. The stock has a market capitalization of $35.90 billion, a PE ratio of 7.64, a price-to-earnings-growth ratio of 1.04 and a beta of 1.34. PayPal Holdings, Inc. has a 12 month low of $38.46 and a 12 month high of $79.50. The business has a 50 day simple moving average of $45.99 and a 200-day simple moving average of $50.12. The company has a debt-to-equity ratio of 0.47, a current ratio of 1.26 and a quick ratio of 1.26.

PayPal (NASDAQ:PYPL) last posted its quarterly earnings data on Tuesday, May 5th. The credit services provider reported $1.34 EPS for the quarter, beating analysts’ consensus estimates of $1.27 by $0.07. The business had revenue of $8.35 billion during the quarter, compared to analysts’ expectations of $8.05 billion. PayPal had a return on equity of 25.02% and a net margin of 15.00%.The business’s revenue was up 7.2% compared to the same quarter last year. During the same period in the previous year, the business earned $1.33 earnings per share. On average, analysts anticipate that PayPal Holdings, Inc. will post 5.3 EPS for the current fiscal year.

PayPal Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, June 25th. Stockholders of record on Thursday, June 4th will be given a $0.14 dividend. The ex-dividend date is Thursday, June 4th. This represents a $0.56 dividend on an annualized basis and a dividend yield of 1.4%. PayPal’s payout ratio is 10.51%.

Key Headlines Impacting PayPal

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: PayPal announced a new embedded payments partnership with Shopware, launching Shopware Payments and expanding PayPal checkout options for merchants. This could help broaden PayPal’s reach across ecommerce platforms and support future payment volume growth. Shopware Payments Deepens PayPal’s Embedded Reach As Valuation Gap Widens
• Positive Sentiment: PayPal also highlighted consumer spending research showing 44% of Canadian shoppers would cut everyday expenses to fund summer soccer-related spending, reinforcing its visibility into spending behavior and potentially supporting payment activity around major events. Goal vs. Going Out: New PayPal Poll shows 44% of Canadians surveyed would sideline everyday spending for summer soccer
• Neutral Sentiment: Analyst commentary indicated PayPal continues to be viewed as a “Hold”, suggesting investors remain cautious and are waiting for clearer evidence of sustained growth or margin improvement. PayPal Holdings, Inc. (NASDAQ:PYPL) Receives Consensus Rating of “Hold” from Analysts
• Negative Sentiment: Recent coverage noted PayPal’s stock has been declining more than the broader market, reflecting ongoing investor concern despite the company’s solid earnings history and low valuation. Paypal (PYPL) Declines More Than Market: Some Information for Investors
• Negative Sentiment: Another article argued PayPal may be shifting from a growth story to a deep-value play, which can signal that the market still doubts a near-term reacceleration in growth. PayPal: Goodbye Growth, Hello Deep Value

Wall Street Analyst Weigh In

Several research firms recently commented on PYPL. Sanford C. Bernstein restated a “market perform” rating on shares of PayPal in a research report on Tuesday, February 24th. Mizuho reiterated a “neutral” rating and issued a $50.00 price objective (down from $60.00) on shares of PayPal in a research report on Thursday, April 16th. Wolfe Research restated a “sell” rating on shares of PayPal in a research report on Monday, February 23rd. Citigroup lifted their price target on PayPal from $42.00 to $48.00 and gave the company a “neutral” rating in a research note on Wednesday, April 8th. Finally, KGI Securities reaffirmed a “hold” rating and issued a $55.00 price target on shares of PayPal in a report on Monday, March 2nd. Eight investment analysts have rated the stock with a Buy rating, thirty-two have given a Hold rating and five have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of “Hold” and a consensus target price of $55.85.

Insider Activity

In other news, CAO Chris Natali sold 1,337 shares of the business’s stock in a transaction that occurred on Wednesday, April 29th. The stock was sold at an average price of $49.46, for a total value of $66,128.02. Following the completion of the sale, the chief accounting officer directly owned 1,586 shares in the company, valued at $78,443.56. The trade was a 45.74% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Frank Keller sold 4,612 shares of PayPal stock in a transaction that occurred on Wednesday, June 3rd. The stock was sold at an average price of $42.54, for a total value of $196,194.48. Following the completion of the sale, the insider directly owned 41,567 shares in the company, valued at $1,768,260.18. This represents a 9.99% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 20,612 shares of company stock worth $966,623 over the last three months. 0.63% of the stock is currently owned by corporate insiders.

PayPal Profile

PayPal Holdings, Inc operates a global digital payments platform that enables consumers and merchants to send and receive payments online, on mobile devices and at the point of sale. The company provides a broad set of payment solutions, including a digital wallet, merchant payment processing, checkout services, invoicing and fraud-management tools. PayPal’s platform is designed to support e-commerce, in-person retail and person-to-person transfers, targeting both individual consumers and businesses of varying sizes.

Key products and services in PayPal’s portfolio include the PayPal wallet and checkout ecosystem, the Venmo peer-to-peer mobile app, Braintree’s developer-focused payment gateway, Xoom for international money transfers, and PayPal Credit and buy-now-pay-later options.