Bank of America Corp DE Makes New Investment in PayPal Holdings, Inc. $PYPL

Key Points

• Bank of America acquired 22.6 million PayPal shares in the second quarter, worth approximately $975.6 million and representing about 2.64% of the company. Other major investors, including BlackRock and Norges Bank, also established or expanded positions.
• PayPal reported quarterly revenue of $8.68 billion and earnings of $1.38 per share, exceeding analyst expectations; revenue increased 4.8% year over year.
• PayPal declared a quarterly dividend of $0.14 per share, equivalent to an annualized yield of about 1.0%. Analysts’ consensus rating remains “Hold,” with an average price target of $56.03.

Bank of America Corp DE acquired a new stake in shares of PayPal Holdings, Inc. (NASDAQ:PYPL - Free Report) during the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm acquired 22,592,936 shares of the credit services provider's stock, valued at approximately $975,563,000. Bank of America Corp DE owned approximately 2.64% of PayPal as of its most recent SEC filing.

Several other institutional investors have also modified their holdings of PYPL. BlackRock Inc. acquired a new stake in shares of PayPal in the second quarter valued at about $3,236,989,000. Norges Bank acquired a new position in PayPal during the fourth quarter worth about $949,758,000. Amundi grew its stake 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 acquiring an additional 9,590,488 shares in the last quarter. Primecap Management Co. CA purchased a new stake in PayPal during the 2nd quarter valued at about $422,092,000. Finally, Dimensional Fund Advisors LP grew its position in shares of PayPal by 4.3% in the first quarter. Dimensional Fund Advisors LP now owns 9,179,771 shares of the credit services provider's stock valued at $415,192,000 after purchasing an additional 376,530 shares in the last quarter. Institutional investors and hedge funds own 68.32% of the company's stock.

PayPal Stock Up 0.6%

PayPal stock opened at $54.03 on Tuesday. PayPal Holdings, Inc. has a twelve month low of $38.46 and a twelve month high of $79.21. The stock's fifty day simple moving average is $56.12 and its 200-day simple moving average is $49.11. 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 firm has a market capitalization of $46.22 billion, a P/E ratio of 10.21, a P/E/G ratio of 1.14 and a beta of 1.28.

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

PayPal Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, September 25th. Shareholders of record on Friday, September 4th will be issued 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 payout ratio is 10.59%.

Insider Transactions at PayPal

In other news, CAO Chris Natali sold 1,337 shares of the firm's stock in a transaction dated Wednesday, July 29th. The stock was sold at an average price of $58.10, for a total transaction of $77,679.70. Following the sale, the chief accounting officer owned 2,216 shares of the company's stock, valued at approximately $128,749.60. This trade represents a 37.63% decrease in their position. The sale 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 business's stock in a transaction that occurred on Thursday, September 3rd. The stock was sold at an average price of $55.43, for a total value of $255,643.16. Following the sale, the insider owned 41,567 shares of the company's stock, valued at approximately $2,304,058.81. The trade was a 9.99% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 14,774 shares of company stock valued at $848,095. 0.63% of the stock is currently owned by corporate insiders.

Analyst Upgrades and Downgrades

A number of research firms have weighed in on PYPL. Telsey Advisory Group lowered PayPal to a "market perform" rating in a research note on Friday, July 24th. Piper Sandler lifted their price target on PayPal from $42.00 to $59.00 and gave the stock a "neutral" rating in a report on Monday, August 17th. Deutsche Bank Aktiengesellschaft reissued a "hold" rating and set a $45.00 price target on shares of PayPal in a research report on Wednesday, July 29th. UBS Group set a $45.00 price objective on shares of PayPal in a report on Wednesday, July 29th. Finally, Jefferies Financial Group upgraded shares of PayPal from a "hold" rating to a "buy" rating in a research report on Tuesday, July 28th. Nine equities research analysts have rated the stock with a Buy rating, thirty-four have assigned a Hold rating and four have given a Sell rating to the company. According to MarketBeat, PayPal presently has an average rating of "Hold" and an average price target of $56.03.

About PayPal

PayPal Holdings, Inc is a digital payments and financial technology company that operates a global platform for consumers and businesses. Its services enable customers to send and receive money, make purchases online and in stores, and accept payments through digital checkout solutions. PayPal supports transactions using linked bank accounts, debit and credit cards, stored balances and other payment methods.

The company's consumer and merchant offerings include the PayPal wallet, PayPal Checkout, PayPal Zettle point-of-sale tools, PayPal Braintree payment processing and PayPal Complete Payments.

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