Allstate Corp Raises Stake in PayPal Holdings, Inc. $PYPL

Key Points

• Allstate Corp increased its PayPal stake by 87.5% in the fourth quarter, buying 29,280 additional shares and bringing its total holding to 62,761 shares worth about $3.66 million.
• PayPal has been drawing continued institutional interest, with firms like Vanguard and Dimensional also adding to positions; overall, institutional investors own 68.32% of the stock.
• The company recently reported better-than-expected quarterly results, with EPS of $1.34 and revenue of $8.35 billion, while analysts currently rate the stock a consensus Hold with an average price target of $55.85.

Allstate Corp boosted its position in PayPal Holdings, Inc. (NASDAQ:PYPL - Free Report) by 87.5% in the 4th quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 62,761 shares of the credit services provider's stock after buying an additional 29,280 shares during the quarter. Allstate Corp's holdings in PayPal were worth $3,664,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other hedge funds and other institutional investors have also bought and sold shares of PYPL. Vanguard Group Inc. boosted its stake 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 during the period. Dimensional Fund Advisors LP boosted its stake in shares of PayPal by 35.9% during the third quarter. Dimensional Fund Advisors LP now owns 8,177,536 shares of the credit services provider's stock valued at $548,520,000 after purchasing an additional 2,160,227 shares during the period. Two Sigma Investments LP purchased a new stake in shares of PayPal during the third quarter valued at approximately $97,794,000. Invesco Ltd. boosted its stake in shares of PayPal by 10.9% during the third quarter. Invesco Ltd. now owns 11,131,949 shares of the credit services provider's stock valued at $746,508,000 after purchasing an additional 1,093,365 shares during the period. Finally, PFA Pension Forsikringsaktieselskab purchased a new stake in shares of PayPal during the fourth quarter valued at approximately $51,680,000. Hedge funds and other institutional investors own 68.32% of the company's stock.

Key Headlines Impacting PayPal

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: PayPal expanded its cross-border payments reach through Tencent’s WeChat Pay network, allowing U.S. PayPal users to make purchases at millions of merchants in China by scanning QR codes. The move could strengthen PayPal’s international utility and transaction volume. Article Title
• Positive Sentiment: The company outlined multiple paths to achieve about $1.5 billion in gross run-rate savings, including AI, automation, and restructuring, which supports margins and could lift earnings if execution stays on track. Article Title
• Positive Sentiment: PayPal also highlighted a new travel-related checkout feature through The Tour Guy’s “Reserve Now, Pay Later” offering, reinforcing that PayPal’s payments infrastructure is being adopted in more commerce use cases. Article Title
• Neutral Sentiment: Management presented at Bernstein’s Strategic Decisions Conference, but the transcript itself did not include any major new catalyst beyond reinforcing the company’s current strategy. Article Title
• Negative Sentiment: Some investor commentary continues to suggest that leadership change and Q1 performance concerns may weigh on sentiment, indicating the market still wants clearer proof of a durable turnaround. Article Title

PayPal Stock Performance

Shares of PYPL stock opened at $43.76 on Thursday. The stock has a fifty day moving average of $46.35 and a 200 day moving average of $51.58. PayPal Holdings, Inc. has a 52 week low of $38.46 and a 52 week high of $79.50. The firm has a market capitalization of $38.60 billion, a price-to-earnings ratio of 8.21, a PEG ratio of 1.11 and a beta of 1.39. The company has a quick ratio of 1.26, a current ratio of 1.26 and a debt-to-equity ratio of 0.47.

PayPal (NASDAQ:PYPL - Get Free Report) last announced its quarterly earnings results on Tuesday, May 5th. The credit services provider reported $1.34 EPS for the quarter, topping analysts' consensus estimates of $1.27 by $0.07. The company had revenue of $8.35 billion during the quarter, compared to analyst estimates of $8.05 billion. PayPal had a return on equity of 25.02% and a net margin of 15.00%.The firm's revenue was up 7.2% on a year-over-year basis. During the same quarter last year, the firm posted $1.33 earnings per share. As a group, research analysts expect that PayPal Holdings, Inc. will post 5.3 earnings per share for the current year.

PayPal Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, June 25th. Shareholders of record on Thursday, June 4th will be issued a $0.14 dividend. The ex-dividend date is Thursday, June 4th. This represents a $0.56 dividend on an annualized basis and a yield of 1.3%. PayPal's dividend payout ratio is 10.51%.

Analyst Ratings Changes

A number of analysts have recently weighed in on the company. Royal Bank Of Canada reissued an "outperform" rating and set a $59.00 price objective on shares of PayPal in a research note on Wednesday, May 6th. Needham & Company LLC reissued a "hold" rating on shares of PayPal in a research note on Tuesday, May 5th. Citizens Jmp reissued a "market perform" rating on shares of PayPal in a research note on Wednesday, February 4th. Robert W. Baird set a $52.00 price target on PayPal in a research note on Wednesday, February 4th. Finally, UBS Group raised their price target on PayPal from $44.00 to $48.00 and gave the stock a "neutral" rating in a research note on Wednesday, May 6th. Eight research 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 company's stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Hold" and an average target price of $55.85.

Insiders Place Their Bets

In other PayPal news, CAO Chris Natali sold 2,208 shares of the stock in a transaction on Tuesday, March 3rd. The stock was sold at an average price of $44.73, for a total value of $98,763.84. Following the completion of the transaction, the chief accounting officer owned 1,140 shares in the company, valued at approximately $50,992.20. This represents a 65.95% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Suzan Kereere sold 13,515 shares of the stock in a transaction on Tuesday, March 3rd. The stock was sold at an average price of $46.02, for a total value of $621,960.30. Following the completion of the transaction, the insider owned 30,983 shares of the company's stock, valued at approximately $1,425,837.66. This trade represents a 30.37% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 57,373 shares of company stock worth $2,684,341. 0.63% of the stock is 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.

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