Algert Global LLC Increases Stake in PayPal Holdings, Inc. $PYPL

Key Points

• Algert Global increased its PayPal stake by 48.2% in the second quarter, holding 100,664 shares valued at approximately $4.35 million. Institutional investors collectively own 68.32% of PayPal.
• PayPal’s latest quarterly results exceeded expectations, with EPS of $1.38 versus $1.28 expected and revenue of $8.68 billion versus $8.47 billion forecast; revenue rose 4.8% year over year.
• Despite recent stock gains and a valuation near 12 times earnings, analysts maintain a consensus “Hold” rating with an average price target of $56.28, while the reported collapse of Advent-Stripe takeover discussions removes a potential deal premium.

Algert Global LLC grew its stake in shares of PayPal Holdings, Inc. (NASDAQ:PYPL - Free Report) by 48.2% in the second quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 100,664 shares of the credit services provider's stock after purchasing an additional 32,759 shares during the quarter. Algert Global LLC's holdings in PayPal were worth $4,347,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds have also recently made changes to their positions in PYPL. BlackRock Inc. bought a new stake in shares of PayPal in the 2nd quarter worth approximately $3,236,989,000. Bank of America Corp DE increased its position in PayPal by 67.9% during 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 purchasing an additional 10,356,256 shares during the period. Norges Bank bought a new position in PayPal in the 4th quarter worth $949,758,000. Amundi raised its holdings 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 purchasing an additional 9,590,488 shares in the last quarter. Finally, Invesco Ltd. lifted its position in shares of PayPal by 9.7% in the 4th quarter. Invesco Ltd. now owns 12,215,792 shares of the credit services provider's stock worth $713,158,000 after purchasing an additional 1,083,843 shares during the period. Institutional investors own 68.32% of the company's stock.

Key PayPal News

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: PayPal’s expansion into tuition payments could support future growth. Integrations with Nelnet Campus Commerce, Illumia and TouchNet allow students and families to use PayPal and Venmo for tuition-related payments, broadening Venmo’s commercial use. PayPal Holdings Tuition Payment Push
• Positive Sentiment: The company’s latest quarterly results exceeded expectations, with earnings per share of $1.38 versus consensus of $1.28 and revenue of approximately $8.68 billion versus estimates of $8.47 billion. Total payment volume reportedly increased 10% year over year, while analysts have raised some price targets and investors continue to view the new CEO transition as a possible turnaround opportunity. Why Is PayPal Up Since Earnings
• Neutral Sentiment: Recent momentum had been strong, with PayPal gaining about 10% over the past month and 39% over three months, although its one-year total return remained negative. The stock’s valuation—roughly 12 times earnings—may attract value investors, but reported analyst targets vary widely and several remain below the current trading level. PayPal Opinions on Earnings and Acquisition Speculation
• Negative Sentiment: The reported collapse of the Advent-Stripe discussions eliminates hopes for a deal premium. The consortium had previously been linked to an offer of at least $60.50 per share, with negotiations reportedly focused on a higher bid. Without that proposal, investors may refocus on PayPal’s slower revenue growth and execution risks. Advent Stripe Consortium Drops PayPal Pursuit

Insider Activity

In other news, insider Suzan Kereere sold 4,162 shares of the company's stock in a transaction on Tuesday, August 18th. The stock was sold at an average price of $60.96, for a total transaction of $253,715.52. Following the transaction, the insider directly owned 30,983 shares of the company's stock, valued at $1,888,723.68. This represents a 11.84% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Frank Keller sold 4,612 shares of the stock in a transaction on Wednesday, June 3rd. The shares were sold at an average price of $42.54, for a total value of $196,194.48. Following the sale, the insider directly owned 41,567 shares in the company, valued at $1,768,260.18. This trade 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 have sold a total of 14,774 shares of company stock valued at $738,249 over the last ninety days. 0.63% of the stock is currently owned by corporate insiders.

Wall Street Analysts Forecast Growth

Several brokerages have commented on PYPL. Piper Sandler raised their price objective on shares of PayPal from $42.00 to $59.00 and gave the stock a "neutral" rating in a report on Monday, August 17th. Susquehanna upped their target price on PayPal from $63.00 to $67.00 and gave the stock a "positive" rating in a report on Wednesday, July 29th. TD Cowen increased their target price on PayPal from $48.00 to $59.00 and gave the stock a "hold" rating in a research report on Wednesday, July 29th. BTIG Research restated a "neutral" rating on shares of PayPal in a research note on Wednesday, July 15th. Finally, Morgan Stanley set a $45.00 price target on PayPal in a research report on Wednesday, July 29th. Nine research analysts have rated the stock with a Buy rating, thirty-four have issued a Hold rating and four have given a Sell rating to the stock. According to MarketBeat.com, the company presently has an average rating of "Hold" and a consensus target price of $56.28.

PayPal Trading Down 0.6%

NASDAQ PYPL opened at $61.47 on Friday. PayPal Holdings, Inc. has a 12 month low of $38.46 and a 12 month high of $79.21. The company has a current ratio of 1.29, a quick ratio of 1.29 and a debt-to-equity ratio of 0.55. The stock's fifty day moving average price is $53.66 and its 200-day moving average price is $48.07. The stock has a market cap of $52.59 billion, a P/E ratio of 11.62, a P/E/G ratio of 1.51 and a beta of 1.30.

PayPal (NASDAQ:PYPL - Get Free Report) last announced its quarterly earnings data on Tuesday, July 28th. The credit services provider reported $1.38 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 company had revenue of $8.68 billion for the quarter, compared to the consensus estimate of $8.47 billion. During the same period in the prior year, the firm posted $1.40 EPS. PayPal's revenue for the quarter was up 4.8% on a year-over-year basis. As a group, equities analysts forecast that PayPal Holdings, Inc. will post 5.38 EPS for the current fiscal year.

PayPal Dividend Announcement

The firm also recently declared 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. The ex-dividend date is Friday, September 4th. This represents a $0.56 annualized dividend and a dividend yield of 0.9%. PayPal's payout ratio is currently 10.59%.

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.

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).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.