ARK Investment Management LLC Has $10.80 Million Holdings in PayPal Holdings, Inc. (NASDAQ:PYPL)

Key Points

• ARK Investment Management LLC reduced its stake in PayPal Holdings by 9.7%, holding 165,494 shares valued at approximately $10.8 million as of the latest quarter.
• PayPal reported an earnings per share (EPS) of $1.33, exceeding analysts’ expectations, with a revenue of $7.79 billion, slightly below the forecast of $7.84 billion.
• The stock has a current market cap of $75.84 billion, with a price-to-earnings (P/E) ratio of 17.45 and a consensus rating of "Hold".

ARK Investment Management LLC cut its holdings in PayPal Holdings, Inc. (NASDAQ:PYPL - Free Report) by 9.7% during the first quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund owned 165,494 shares of the credit services provider's stock after selling 17,808 shares during the period. ARK Investment Management LLC's holdings in PayPal were worth $10,798,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors also recently made changes to their positions in the company. Mpwm Advisory Solutions LLC acquired a new stake in shares of PayPal in the fourth quarter valued at approximately $25,000. Hurley Capital LLC acquired a new stake in PayPal in the fourth quarter valued at $27,000. Bernard Wealth Management Corp. acquired a new stake in PayPal in the fourth quarter valued at $34,000. Pinney & Scofield Inc. acquired a new stake in PayPal in the fourth quarter valued at $35,000. Finally, Garde Capital Inc. acquired a new stake in PayPal in the first quarter valued at $28,000. 68.32% of the stock is currently owned by institutional investors and hedge funds.

PayPal Price Performance

PYPL stock opened at $77.98 on Friday. The company has a quick ratio of 1.30, a current ratio of 1.30 and a debt-to-equity ratio of 0.56. PayPal Holdings, Inc. has a 12 month low of $55.85 and a 12 month high of $93.66. The firm has a market cap of $75.84 billion, a P/E ratio of 17.45, a P/E/G ratio of 1.28 and a beta of 1.45. The company's 50-day moving average price is $73.19 and its two-hundred day moving average price is $72.93.

PayPal (NASDAQ:PYPL - Get Free Report) last announced its quarterly earnings results on Tuesday, April 29th. The credit services provider reported $1.33 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.16 by $0.17. The company had revenue of $7.79 billion for the quarter, compared to analyst estimates of $7.84 billion. PayPal had a net margin of 14.26% and a return on equity of 24.59%. The firm's revenue was up 1.2% on a year-over-year basis. During the same period in the previous year, the firm posted $1.08 EPS. On average, analysts anticipate that PayPal Holdings, Inc. will post 5.03 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, Director Deborah M. Messemer sold 3,795 shares of PayPal stock in a transaction that occurred on Friday, June 6th. The shares were sold at an average price of $73.00, for a total transaction of $277,035.00. Following the sale, the director directly owned 13,976 shares in the company, valued at $1,020,248. This trade represents a 21.36% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Suzan Kereere sold 4,162 shares of PayPal stock in a transaction that occurred on Friday, June 6th. The stock was sold at an average price of $73.24, for a total transaction of $304,824.88. Following the sale, the insider owned 48,483 shares in the company, valued at approximately $3,550,894.92. This represents a 7.91% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 11,796 shares of company stock worth $863,028 in the last ninety days. Company insiders own 0.08% of the company's stock.

Analyst Upgrades and Downgrades

A number of analysts have commented on the stock. Deutsche Bank Aktiengesellschaft assumed coverage on shares of PayPal in a research note on Thursday, July 17th. They issued a "hold" rating and a $75.00 price target for the company. Piper Sandler upgraded shares of PayPal to a "neutral" rating and set a $74.00 price target for the company in a research note on Tuesday, June 24th. Robert W. Baird increased their price target on shares of PayPal from $78.00 to $79.00 and gave the company an "outperform" rating in a research note on Wednesday, April 30th. Macquarie cut their price target on shares of PayPal from $117.00 to $95.00 and set an "outperform" rating for the company in a research note on Tuesday, April 29th. Finally, Seaport Res Ptn upgraded shares of PayPal from a "strong sell" rating to a "hold" rating in a research note on Monday, July 14th. Two investment analysts have rated the stock with a sell rating, seventeen have given a hold rating, eighteen have issued a buy rating and one has issued a strong buy rating to the stock. Based on data from MarketBeat, PayPal has a consensus rating of "Hold" and a consensus price target of $83.13.

PayPal Company Profile

PayPal Holdings, Inc operates a technology platform that enables digital payments on behalf of merchants and consumers worldwide. It operates a two-sided network at scale that connects merchants and consumers that enables its customers to connect, transact, and send and receive payments through online and in person, as well as transfer and withdraw funds using various funding sources, such as bank accounts, PayPal or Venmo account balance, PayPal and Venmo branded credit products comprising its installment products, credit and debit cards, and cryptocurrencies, as well as other stored value products, including gift cards and eligible rewards.

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