Arete Wealth Advisors LLC Acquires 18,158 Shares of PayPal Holdings, Inc. $PYPL

Key Points

• Arete Wealth Advisors increased its PayPal stake by 273.2%, purchasing 18,158 additional shares to hold 24,804 shares valued at approximately $1.12 million. Institutional investors collectively own 68.32% of PayPal.
• PayPal’s latest quarterly results beat expectations, with earnings of $1.38 per share and revenue of $8.68 billion, while revenue rose 4.8% year over year. Management also raised its full-year outlook, citing improved branded checkout, Venmo growth and cost savings.
• Despite several analysts raising price targets, the overall consensus remains “Hold”, with an average target of $55.50. Investors continue to monitor PayPal’s slower growth, margin pressure and execution of its turnaround strategy.

Arete Wealth Advisors LLC grew its holdings in shares of PayPal Holdings, Inc. (NASDAQ:PYPL - Free Report) by 273.2% during the 1st quarter, according to its most recent Form 13F filing with the SEC. The firm owned 24,804 shares of the credit services provider's stock after buying an additional 18,158 shares during the period. Arete Wealth Advisors LLC's holdings in PayPal were worth $1,121,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors also recently made changes to their positions in PYPL. Norges Bank bought a new position in PayPal in the 4th quarter worth $949,758,000. Bank of America Corp DE boosted its stake in shares of 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 in the last quarter. Amundi increased 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 buying an additional 9,590,488 shares during the period. Vanguard Group Inc. increased 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 buying an additional 5,534,462 shares during the period. Finally, SG Americas Securities LLC raised its stake in PayPal by 355.1% in 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 buying an additional 3,875,688 shares in the last quarter. 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 second-quarter results exceeded expectations, with adjusted earnings per share of $1.38 versus the $1.28 consensus and revenue of $8.68 billion versus $8.47 billion expected. Management also raised its full-year outlook, citing improving branded checkout, Venmo expansion and cost savings. PayPal Shares Pause as Raised Guidance Validates Turnaround Narrative
• Positive Sentiment: Several analysts raised their price targets following the earnings report, including JPMorgan, TD Cowen, Citigroup and Keefe, Bruyette & Woods. The targets—ranging from the mid-$50s to $70—suggest some analysts see additional upside if PayPal sustains its operational improvements. JPMorgan Analyst Says PayPal Stock Could Rise
• Positive Sentiment: Value-focused commentary highlights PYPL’s relatively low earnings multiple, arguing that the valuation could provide support if the company converts its stronger guidance into consistent growth. PayPal: A Steal At Less Than 10x Earnings
• Neutral Sentiment: Analyst opinion remains mixed. Canaccord Genuity maintained a hold rating, while Wells Fargo increased its target to $56 but kept an equal-weight rating. The broader brokerage consensus remains “hold,” reflecting improved results but limited confidence in PayPal’s longer-term growth trajectory. Canaccord Gives PayPal a Hold Rating
• Neutral Sentiment: Speculation about takeover interest, including a reported bid involving Stripe and Advent International, could support valuation, but no transaction is confirmed and investors remain focused on PayPal’s standalone turnaround. Is Takeout Target PayPal a Buy?
• Negative Sentiment: Bearish analysis says PayPal’s substantial share-repurchase program has not translated into sustained stock-price gains, underscoring skepticism about capital allocation and the company’s growth prospects. PayPal’s $17 Billion Bet Against Wall Street
• Negative Sentiment: Investors continue to monitor margin pressure, branded-checkout execution and PayPal’s slower growth relative to major payments peers. Two insiders also sold shares under pre-arranged Rule 10b5-1 plans; the sales are relatively small but may add modest near-term caution. PayPal Insider Selling

Analyst Ratings Changes

PYPL has been the subject of several research analyst reports. Robert W. Baird raised their price objective on shares of PayPal from $50.00 to $57.00 and gave the stock a "neutral" rating in a report on Wednesday. Barclays upped their target price on PayPal from $55.00 to $57.00 and gave the stock an "equal weight" rating in a report on Wednesday. Daiwa Securities Group upgraded PayPal from a "hold" rating to an "outperform" rating in a research note on Wednesday, May 6th. Mizuho raised their target price on PayPal from $50.00 to $60.00 and gave the company a "neutral" rating in a research note on Wednesday. Finally, Susquehanna lifted their price target on PayPal from $63.00 to $67.00 and gave the company a "positive" rating in a research report on Wednesday. Nine 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 data from MarketBeat.com, PayPal has an average rating of "Hold" and an average target price of $55.50.

Insider Activity at PayPal

In other news, insider Suzan Kereere sold 3,379 shares of the 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 sale, the insider directly owned 30,983 shares of the company's stock, valued at approximately $1,325,762.57. This represents a 9.83% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Frank Keller sold 4,612 shares of the firm's 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 transaction, the insider owned 41,567 shares of the company's stock, valued at $1,768,260.18. The trade was a 9.99% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 10,612 shares of company stock valued at $484,534 in the last 90 days. Corporate insiders own 0.63% of the company's stock.

PayPal Trading Down 0.8%

NASDAQ:PYPL opened at $57.21 on Friday. The firm has a market capitalization of $48.94 billion, a P/E ratio of 10.81, a PEG ratio of 1.42 and a beta of 1.33. The company has a debt-to-equity ratio of 0.55, a current ratio of 1.29 and a quick ratio of 1.26. PayPal Holdings, Inc. has a one year low of $38.46 and a one year high of $79.21. The company's 50-day simple moving average is $47.03 and its 200 day simple moving average is $47.09.

PayPal (NASDAQ:PYPL - Get Free Report) last announced 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 business had revenue of $8.68 billion during the quarter, compared to the consensus estimate of $8.47 billion. During the same quarter last year, the firm earned $1.40 earnings per share. The business's revenue for the quarter was up 4.8% on a year-over-year basis. As a group, analysts forecast that PayPal Holdings, Inc. will post 5.35 EPS for the current fiscal year.

PayPal Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, September 25th. Investors of record on Friday, September 4th will be given a dividend of $0.14 per share. This represents a $0.56 dividend on an annualized basis and a yield of 1.0%. The ex-dividend date of this dividend is Friday, September 4th. PayPal's dividend payout ratio (DPR) 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.

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