436,017 Shares in PayPal Holdings, Inc. $PYPL Bought by S&CO Inc.

Key Points

• S&CO Inc. acquired 436,017 PayPal shares worth approximately $18.8 million in the second quarter, making PayPal about 1.1% of its portfolio. Institutional investors collectively own 68.32% of PayPal.
• PayPal reported quarterly earnings of $1.38 per share and revenue of $8.68 billion, surpassing analyst estimates, while revenue increased 4.8% year over year.
• Analysts maintain a broadly cautious outlook, with a consensus “Hold” rating and an average price target of $55.72; insiders also sold $484,534 worth of shares during the last quarter.

S&CO Inc. purchased a new stake in PayPal Holdings, Inc. (NASDAQ:PYPL - Free Report) in the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor purchased 436,017 shares of the credit services provider's stock, valued at approximately $18,827,000. PayPal comprises about 1.1% of S&CO Inc.'s holdings, making the stock its 25th biggest holding. S&CO Inc. owned approximately 0.05% of PayPal as of its most recent SEC filing.

A number of other institutional investors and hedge funds have also bought and sold shares of the stock. Norges Bank bought a new stake in shares of PayPal in the 4th quarter worth $949,758,000. Bank of America Corp DE raised its holdings in shares of PayPal by 67.9% in the first 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 purchasing an additional 10,356,256 shares during the last quarter. Amundi lifted its position in shares of PayPal by 227.6% during the first quarter. Amundi now owns 13,804,208 shares of the credit services provider's stock valued at $624,364,000 after purchasing an additional 9,590,488 shares in the last quarter. Vanguard Group Inc. lifted its position in shares of 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 purchasing an additional 5,534,462 shares in the last quarter. Finally, SG Americas Securities LLC boosted its holdings in PayPal by 355.1% during the first quarter. SG Americas Securities LLC now owns 4,967,170 shares of the credit services provider's stock worth $224,665,000 after purchasing an additional 3,875,688 shares during the last quarter. 68.32% of the stock is owned by hedge funds and other institutional investors.

Insider Activity at PayPal

In related news, insider Frank Keller sold 4,612 shares of the company's 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 transaction, the insider owned 41,567 shares in the company, valued at approximately $1,768,260.18. This represents a 9.99% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Suzan Kereere sold 3,379 shares of the stock in a transaction on Wednesday, June 3rd. The shares were sold at an average price of $42.79, for a total value of $144,587.41. Following the transaction, the insider directly owned 30,983 shares of the company's stock, valued at approximately $1,325,762.57. This trade represents a 9.83% 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. Over the last quarter, insiders have sold 10,612 shares of company stock worth $484,534. Insiders own 0.63% of the company's stock.

PayPal News Summary

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: Renewed takeover discussions provided the main catalyst. PayPal is reportedly in early negotiations to sell itself to a group involving Stripe and private-equity firm Advent International. The parties are said to be considering a higher valuation than an earlier offer, although discussions remain preliminary and no deal is assured. PayPal Stock Rises on Report of Stripe, Advent Buyout Talks
• Positive Sentiment: A $1.5 billion cost-savings plan could support earnings. PayPal intends to use artificial intelligence, operational changes and a simpler organizational structure to reduce expenses, potentially improving profitability while freeing resources for future growth. PayPal Cost Savings: Will $1.5B Plan Reshape Profitability?
• Positive Sentiment: Venmo remains a potential growth and monetization engine. Venmo is generating mid-teens total payment volume growth, but the investment case increasingly depends on PayPal converting expanding user activity and product adoption into revenue. PayPal's Venmo: Can Monetization Sustain Its Mid-Teens Growth?
• Neutral Sentiment: Recent profit improvement may already be reflected in company disclosures. Commentary highlighted a shift toward businesses that are supporting PayPal’s recovery, but suggested the underlying drivers were previously identified in management reports rather than representing a wholly new development. PayPal Stock Surged On a Profit Shift Management Had Already Spelled Out
• Negative Sentiment: Longer-term investor concerns remain. Despite recurring payment-volume growth, PayPal’s shares remain far below their record level, reflecting doubts about revenue conversion, competitive pressure and the company’s ability to sustain growth. PayPal Grows Its Volume Every Year. Here's Why the Stock Doesn't Always Follow

Wall Street Analyst Weigh In

Several equities research analysts have commented on PYPL shares. BMO Capital Markets started coverage on shares of PayPal in a research note on Tuesday, April 21st. They issued a "market perform" rating and a $52.00 price objective for the company. William Blair restated a "market perform" rating on shares of PayPal in a research note on Wednesday, July 15th. Mizuho upped their target price on PayPal from $50.00 to $60.00 and gave the company a "neutral" rating in a report on Wednesday, July 29th. Daiwa Securities Group raised PayPal from a "hold" rating to an "outperform" rating in a report on Wednesday, May 6th. Finally, Weiss Ratings reaffirmed a "hold (c-)" rating on shares of PayPal in a research report on Wednesday, August 5th. Nine equities research analysts have rated the stock with a Buy rating, thirty-four have assigned a Hold rating and four have assigned a Sell rating to the company. According to MarketBeat.com, the company presently has a consensus rating of "Hold" and an average target price of $55.72.

PayPal Stock Performance

NASDAQ PYPL opened at $61.67 on Friday. The company has a market capitalization of $52.76 billion, a PE ratio of 11.66, a price-to-earnings-growth ratio of 1.51 and a beta of 1.30. The company has a debt-to-equity ratio of 0.55, a quick ratio of 1.29 and a current ratio of 1.29. PayPal Holdings, Inc. has a 52-week low of $38.46 and a 52-week high of $79.21. The company has a 50-day simple moving average of $50.13 and a 200 day simple moving average of $47.28.

PayPal (NASDAQ:PYPL - Get Free Report) last released its earnings results on Tuesday, July 28th. The credit services provider reported $1.38 earnings per share for the quarter, beating analysts' consensus estimates 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 previous year, the company earned $1.40 earnings per share. The company's quarterly revenue was up 4.8% on a year-over-year basis. On average, research analysts predict that PayPal Holdings, Inc. will post 5.37 EPS for the current year.

PayPal Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, September 25th. Investors of record on Friday, September 4th will be issued a $0.14 dividend. This represents a $0.56 dividend on an annualized basis and a dividend yield of 0.9%. The ex-dividend date of this dividend is Friday, September 4th. PayPal's payout ratio is 10.59%.

PayPal Company 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.

Want to see what other hedge funds are holding PYPL? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for PayPal Holdings, Inc. (NASDAQ:PYPL - Free Report).

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