Allworth Financial LP Makes New Investment in PayPal Holdings, Inc. $PYPL

Key Points

• Allworth Financial initiated a PayPal position of 19,713 shares worth approximately $851,000 in the second quarter. Institutional investors collectively own 68.32% of PayPal, with major firms including Vanguard, BlackRock and Bank of America also increasing or initiating stakes.
• PayPal exceeded quarterly expectations, reporting adjusted earnings of $1.38 per share versus the $1.28 consensus and revenue of $8.68 billion versus $8.47 billion expected. Revenue grew 4.8% year over year, while the company announced a quarterly dividend of $0.14 per share.
• Analyst sentiment remains cautious despite recent momentum. PayPal’s consensus rating is “Hold” with a $56.28 price target, as investors weigh growth opportunities in Venmo and AI-enabled payments against intense competition, modest revenue growth and speculative takeover reports.

Allworth Financial LP purchased a new stake in shares of PayPal Holdings, Inc. (NASDAQ:PYPL - Free Report) in the 2nd quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor purchased 19,713 shares of the credit services provider's stock, valued at approximately $851,000.

Other institutional investors have also modified their holdings of the company. Vanguard Group Inc. lifted its position in 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 acquiring an additional 5,534,462 shares during the last quarter. BlackRock Inc. purchased a new position in PayPal during the 2nd quarter worth $3,236,989,000. Bank of America Corp DE grew its stake 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 worth $1,158,554,000 after buying an additional 10,356,256 shares during the last quarter. Norges Bank purchased a new position in PayPal during the 4th quarter worth $949,758,000. Finally, Amundi increased its position in PayPal by 227.6% during the 1st quarter. Amundi now owns 13,804,208 shares of the credit services provider's stock valued at $624,364,000 after buying an additional 9,590,488 shares in the last quarter. 68.32% of the stock is currently owned by institutional investors.

PayPal News Summary

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: Venmo’s expansion into college tuition payments could increase transaction volume. PayPal and Venmo are now being integrated with Illumia, Nelnet Campus Commerce and TouchNet, allowing students and families at participating universities to pay tuition and fees through the digital wallets. The initiative adds a potentially recurring, higher-value use case, although transaction fees and adoption will vary by school. PayPal, Venmo connect to colleges
• Positive Sentiment: Agentic payments offer a longer-term growth narrative. PayPal is positioning its platform around AI-enabled commerce, digital identity and automated payments, potentially allowing software agents to complete transactions on behalf of consumers. The strategy could strengthen PayPal’s relevance as commerce evolves, but commercialization and competitive execution remain uncertain. PayPal Agentic Payments: Can They Reshape the Future of Commerce?
• Positive Sentiment: Technical momentum and investor interest remain supportive. PayPal has formed a bullish “golden cross,” while David Einhorn’s reported $61.5 million stake provides additional visibility and may reinforce the turnaround case. David Einhorn's PayPal Bet Just Flashed a Golden Cross
• Neutral Sentiment: Takeover chatter is supporting the shares but remains unconfirmed. Reports have revived speculation about a potential sale process involving Stripe and Advent International. No offer or transaction has been announced, so any takeover premium is speculative. PayPal Stock Closes Higher Thursday
• Negative Sentiment: The recent rally has increased valuation and execution concerns. Investors are questioning whether PayPal can sustain momentum amid modest underlying revenue growth and intense competition in digital payments and buy-now-pay-later services. A director’s $253,716 sale under a pre-arranged Rule 10b5-1 plan adds a mild cautionary signal, though it is not necessarily an indication of deteriorating business prospects. PayPal Insider Selling

Wall Street Analyst Weigh In

A number of research firms have commented on PYPL. Weiss Ratings reiterated a "hold (c-)" rating on shares of PayPal in a research note on Wednesday, August 5th. JPMorgan Chase & Co. boosted their price target on PayPal from $46.00 to $65.00 and gave the stock a "neutral" rating in a research note on Wednesday, July 29th. Deutsche Bank Aktiengesellschaft restated a "hold" rating and set a $45.00 price objective on shares of PayPal in a report on Wednesday, July 29th. Telsey Advisory Group lowered shares of PayPal to a "market perform" rating in a research report on Friday, July 24th. Finally, The Goldman Sachs Group set a $50.00 target price on shares of PayPal in a research note on Tuesday, July 28th. Nine analysts have rated the stock with a Buy rating, thirty-four have given a Hold rating and four have assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock has an average rating of "Hold" and a consensus target price of $56.28.

PayPal Stock Performance

Shares of PYPL opened at $61.55 on Friday. The stock has a 50-day moving average of $52.13 and a two-hundred day moving average of $47.51. PayPal Holdings, Inc. has a one year low of $38.46 and a one year high of $79.21. The company has a debt-to-equity ratio of 0.55, a quick ratio of 1.29 and a current ratio of 1.29. The stock has a market cap of $52.65 billion, a P/E ratio of 11.64, a P/E/G ratio of 1.50 and a beta of 1.30.

PayPal (NASDAQ:PYPL - Get Free Report) last posted its quarterly earnings results on Tuesday, July 28th. The credit services provider reported $1.38 earnings per share for the quarter, beating the consensus estimate of $1.28 by $0.10. The business had revenue of $8.68 billion for the quarter, compared to the consensus estimate of $8.47 billion. PayPal had a return on equity of 24.39% and a net margin of 14.36%.The company's quarterly revenue was up 4.8% compared to the same quarter last year. During the same quarter in the previous year, the business earned $1.40 EPS. As a group, research analysts predict that PayPal Holdings, Inc. will post 5.38 EPS for the current year.

PayPal Dividend Announcement

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

Insider Buying and Selling

In other news, CAO Chris Natali sold 1,337 shares of the company's stock in a transaction on Wednesday, July 29th. The shares were sold at an average price of $58.10, for a total value of $77,679.70. Following the sale, the chief accounting officer directly owned 2,216 shares of the company's stock, valued at $128,749.60. This represents a 37.63% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible 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 stock was sold at an average price of $42.54, for a total transaction of $196,194.48. Following the completion of the sale, the insider owned 41,567 shares in the company, valued at $1,768,260.18. The trade was a 9.99% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 14,774 shares of company stock worth $738,249. 0.63% of the stock is owned by company insiders.

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.

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.

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