33,989 Shares in PayPal Holdings, Inc. $PYPL Acquired by Audent Global Asset Management LLC

Key Points

• Audent Global Asset Management initiated a new stake in PayPal during the first quarter, buying 33,989 shares valued at about $1.54 million. The position makes PayPal roughly 1.6% of the fund’s portfolio.
• PayPal’s latest earnings beat expectations, with EPS of $1.34 versus the $1.27 estimate and revenue of $8.35 billion versus $8.05 billion expected. Revenue rose 7.2% year over year, and analysts now expect full-year EPS of 5.32.
• Market attention is also focused on reported takeover interest from Stripe and Advent, though PayPal’s board reportedly views the $53 billion proposal as inadequate. The stock has drawn mixed analyst opinions, with a consensus rating of “Hold.”

Audent Global Asset Management LLC bought a new stake in PayPal Holdings, Inc. (NASDAQ:PYPL - Free Report) in the first quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund bought 33,989 shares of the credit services provider's stock, valued at approximately $1,537,000. PayPal accounts for about 1.6% of Audent Global Asset Management LLC's investment portfolio, making the stock its 21st biggest holding.

Other hedge funds also recently made changes to their positions in the company. Watershed Asset Management L.L.C. increased its stake in PayPal by 31.4% during the first quarter. Watershed Asset Management L.L.C. now owns 9,595 shares of the credit services provider's stock worth $434,000 after acquiring an additional 2,295 shares during the last quarter. Kera Capital Partners Inc. lifted its stake in shares of PayPal by 125.6% in the 1st quarter. Kera Capital Partners Inc. now owns 9,828 shares of the credit services provider's stock valued at $445,000 after purchasing an additional 5,472 shares in the last quarter. Cornerstone Planning Group LLC lifted its stake in shares of PayPal by 26.2% in the 1st quarter. Cornerstone Planning Group LLC now owns 1,523 shares of the credit services provider's stock valued at $71,000 after purchasing an additional 316 shares in the last quarter. Gryphon Financial Partners LLC grew its holdings in shares of PayPal by 5.0% during the 1st quarter. Gryphon Financial Partners LLC now owns 6,292 shares of the credit services provider's stock worth $285,000 after purchasing an additional 301 shares during the period. Finally, Advisortrust Partners LLC grew its holdings in shares of PayPal by 62.3% during the 1st quarter. Advisortrust Partners LLC now owns 10,238 shares of the credit services provider's stock worth $463,000 after purchasing an additional 3,931 shares during the period. Institutional investors and hedge funds own 68.32% of the company's stock.

PayPal Trading Down 0.3%

Shares of PYPL opened at $56.56 on Friday. The business's 50-day moving average price is $44.60 and its 200 day moving average price is $47.23. The company has a current ratio of 1.26, a quick ratio of 1.26 and a debt-to-equity ratio of 0.47. The stock has a market capitalization of $49.89 billion, a P/E ratio of 10.61, a P/E/G ratio of 1.42 and a beta of 1.33. PayPal Holdings, Inc. has a 1-year low of $38.46 and a 1-year high of $79.50.

PayPal (NASDAQ:PYPL - Get Free Report) last announced its earnings results on Tuesday, May 5th. The credit services provider reported $1.34 EPS for the quarter, topping the consensus estimate of $1.27 by $0.07. The company had revenue of $8.35 billion during the quarter, compared to analysts' expectations of $8.05 billion. PayPal had a net margin of 15.00% and a return on equity of 25.02%. The business's revenue for the quarter was up 7.2% on a year-over-year basis. During the same period last year, the company posted $1.33 earnings per share. Analysts expect that PayPal Holdings, Inc. will post 5.32 earnings per share for the current year.

PayPal Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Thursday, June 25th. Shareholders of record on Thursday, June 4th were given a dividend of $0.14 per share. This represents a $0.56 annualized dividend and a yield of 1.0%. The ex-dividend date was Thursday, June 4th. PayPal's payout ratio is presently 10.51%.

Insiders Place Their Bets

In other news, insider Suzan Kereere sold 3,379 shares of the firm's stock in a transaction on Wednesday, June 3rd. The stock was sold at an average price of $42.79, for a total value of $144,587.41. Following the completion of the sale, the insider owned 30,983 shares of the company's stock, valued at $1,325,762.57. This trade represents a 9.83% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Frank Keller sold 10,732 shares of the firm's stock in a transaction on Wednesday, April 29th. The stock was sold at an average price of $49.96, for a total value of $536,170.72. Following the completion of the sale, the insider directly owned 41,567 shares of the company's stock, valued at approximately $2,076,687.32. This trade represents a 20.52% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 20,612 shares of company stock worth $966,623. Corporate insiders own 0.63% of the company's stock.

PayPal News Summary

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: The reported takeover interest from Stripe and Advent has fueled speculation that PayPal could be worth more than the current offer, with several analysts and investors arguing the bid is too low. Reuters: PayPal board sees Stripe-Advent offer as inadequate, sources say
• Positive Sentiment: Some market commentary suggests the bid could force a higher valuation for PYPL, potentially supporting further upside if negotiations continue or a competing offer emerges. Yahoo Finance: Cantor sees potential for higher PayPal offer as analysis suggests $70/share value
• Neutral Sentiment: PayPal’s board has reportedly not formally responded yet, so the deal is still early-stage and subject to negotiation, financing, and regulatory risk. Yahoo Finance weekly review
• Negative Sentiment: The board is said to view the $53 billion proposal as inadequate, which could mean a longer path to any deal or no deal at all if a higher price does not materialize. PYMNTS: PayPal Board Calls $53 Billion Stripe-Advent Bid Inadequate

Wall Street Analyst Weigh In

Several research analysts recently commented on the stock. BNP Paribas Exane raised their price target on shares of PayPal from $41.00 to $43.50 and gave the company a "neutral" rating in a report on Friday, April 10th. BTIG Research reissued a "neutral" rating on shares of PayPal in a research report on Wednesday. Piper Sandler cut their target price on shares of PayPal from $46.00 to $42.00 and set a "neutral" rating on the stock in a research note on Monday, June 29th. Deutsche Bank Aktiengesellschaft reduced their target price on shares of PayPal from $50.00 to $45.00 in a report on Monday, May 11th. Finally, Loop Capital assumed coverage on shares of PayPal in a research report on Tuesday, March 31st. They set a "hold" rating and a $46.00 price target for the company. Seven investment analysts have rated the stock with a Buy rating, thirty-four have given a Hold rating and five have given a Sell rating to the company. According to data from MarketBeat, the stock presently has an average rating of "Hold" and a consensus target price of $54.61.

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.

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