PayPal (NASDAQ:PYPL) Insider Sells $42,529.20 in Stock

PayPal Holdings, Inc. (NASDAQ:PYPL) insider Frank Keller sold 732 shares of the business’s stock in a transaction on Wednesday, July 29th. The stock was sold at an average price of $58.10, for a total transaction of $42,529.20. Following the completion of the sale, the insider owned 41,567 shares in the company, valued at $2,415,042.70. This represents a 1.73% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Frank Keller also recently made the following trade(s):

• On Wednesday, June 3rd, Frank Keller sold 4,612 shares of PayPal stock. The shares were sold at an average price of $42.54, for a total transaction of $196,194.48.

PayPal Price Performance

Shares of NASDAQ:PYPL traded down $0.70 on Thursday, reaching $57.65. The company’s stock had a trading volume of 11,958,003 shares, compared to its average volume of 19,628,756. The company has a 50-day simple moving average of $46.50 and a 200 day simple moving average of $47.02. PayPal Holdings, Inc. has a 52-week low of $38.46 and a 52-week high of $79.21. The company has a debt-to-equity ratio of 0.55, a quick ratio of 1.26 and a current ratio of 1.29. The company has a market cap of $50.85 billion, a P/E ratio of 10.90, a PEG ratio of 1.46 and a beta of 1.33.

PayPal (NASDAQ:PYPL) last announced its earnings results on Tuesday, July 28th. The credit services provider reported $1.38 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.28 by $0.10. PayPal had a net margin of 14.36% and a return on equity of 24.39%. The firm had revenue of $8.68 billion for the quarter, compared to analysts’ expectations of $8.47 billion. During the same period in the prior year, the company earned $1.40 EPS. The business’s revenue was up 4.8% compared to the same quarter last year. As a group, equities research analysts anticipate that PayPal Holdings, Inc. will post 5.31 EPS for the current fiscal year.

PayPal Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, September 25th. Stockholders of record on Friday, September 4th will be paid a $0.14 dividend. This represents a $0.56 annualized dividend and a dividend yield of 1.0%. The ex-dividend date of this dividend is Friday, September 4th. PayPal’s dividend payout ratio (DPR) is presently 10.51%.

Wall Street Analyst Weigh In

Several analysts recently weighed in on the company. JPMorgan Chase & Co. increased their price target on PayPal from $46.00 to $65.00 and gave the company a “neutral” rating in a report on Wednesday. Weiss Ratings reaffirmed a “hold (c-)” rating on shares of PayPal in a research note on Friday, May 8th. Wells Fargo & Company increased their target price on shares of PayPal from $48.00 to $56.00 and gave the company an “equal weight” rating in a research note on Wednesday. The Goldman Sachs Group set a $50.00 price target on shares of PayPal in a research note on Tuesday. Finally, Susquehanna increased their price objective on shares of PayPal from $63.00 to $67.00 and gave the stock a “positive” rating in a research report on Wednesday. Nine investment analysts have rated the stock with a Buy rating, thirty-four have given a Hold rating and four have given a Sell rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of “Hold” and a consensus price target of $55.50.

Institutional Trading of PayPal

Large investors have recently made changes to their positions in the stock. Vanguard Group Inc. increased its stake in PayPal by 6.5% in the 4th quarter. Vanguard Group Inc. now owns 90,376,927 shares of the credit services provider’s stock worth $5,276,205,000 after buying an additional 5,534,462 shares during the period. Bank of America Corp DE boosted its position in PayPal by 67.9% in the 1st quarter. Bank of America Corp DE now owns 25,614,720 shares of the credit services provider’s stock valued at $1,158,554,000 after buying an additional 10,356,256 shares during the period. Norges Bank purchased a new stake in PayPal in the 4th quarter valued at about $949,758,000. Amundi grew its stake in PayPal by 227.6% in the 1st quarter. Amundi now owns 13,804,208 shares of the credit services provider’s stock worth $624,364,000 after acquiring an additional 9,590,488 shares in the last quarter. Finally, Invesco Ltd. increased its position in shares of PayPal by 9.7% during the fourth quarter. Invesco Ltd. now owns 12,215,792 shares of the credit services provider’s stock worth $713,158,000 after acquiring an additional 1,083,843 shares during the period. 68.32% of the stock is owned by hedge funds and other institutional investors.

Trending Headlines about PayPal

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: PayPal reported adjusted earnings of $1.38 per share, above the $1.28 consensus estimate, while revenue reached $8.68 billion versus expectations of $8.47 billion. Revenue increased 4.8% year over year, and management raised its full-year earnings outlook. PayPal profit beat and takeover coverage
• Positive Sentiment: Management said branded checkout is stabilizing, Venmo continues to expand and cost-saving initiatives are supporting the turnaround. Several analysts raised their price targets after the results, including JPMorgan to $65 and KBW to $70; KBW also upgraded the stock to Outperform. Analysts raise PayPal forecasts
• Positive Sentiment: Reported takeover interest from Stripe and Advent International, at approximately $60.50 per share, may provide a potential valuation floor and keeps strategic alternatives in focus. However, PayPal’s board reportedly viewed the offer as too low. PayPal takeover target coverage
• Neutral Sentiment: Wall Street remains divided. Mizuho, Citi, TD Cowen, Wells Fargo, Baird and Canaccord raised or maintained targets but generally kept Neutral, Hold or Equal Weight ratings, reflecting limited upside at recent trading levels. Wall Street views on PayPal
• Negative Sentiment: Investors remain concerned that PayPal’s core branded checkout has lost momentum and requires a new CEO and substantial execution improvement. Comparisons with Visa’s stronger payment-volume performance highlight the risk that payments growth and industry power are concentrating elsewhere. Visa versus PayPal post-earnings comparison
• Negative Sentiment: Goldman Sachs reportedly warned investors to sell, while analysts cited margin pressure and execution risks. The earnings beat therefore has not yet convinced the market that PayPal’s turnaround is durable. Goldman Sachs PayPal warning

About PayPal

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.