Capital Research Global Investors Acquires 636,441 Shares of PayPal Holdings, Inc. $PYPL

Key Points

• Capital Research Global Investors bought an additional 636,441 PayPal shares in Q3 and now holds 27,953,803 shares (about 2.99%) valued at roughly $1.875 billion.
• PayPal missed quarterly estimates (EPS $1.23 vs. $1.29; revenue $8.68B vs. $8.82B) and the analyst consensus is a Hold with an average price target of $59.03.
• Securities-class-action filings and multiple plaintiff‑soliciting firms have surfaced, increasing headline/legal risk, while insiders have been net sellers (87,608 shares sold in the last 90 days), which may pressure sentiment.

Capital Research Global Investors lifted its holdings in PayPal Holdings, Inc. (NASDAQ:PYPL - Free Report) by 2.3% during the third quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 27,953,803 shares of the credit services provider's stock after purchasing an additional 636,441 shares during the quarter. Capital Research Global Investors owned 2.99% of PayPal worth $1,874,637,000 as of its most recent SEC filing.

Other hedge funds have also added to or reduced their stakes in the company. Cloud Capital Management LLC bought a new position in shares of PayPal in the 3rd quarter valued at about $30,000. VSM Wealth Advisory LLC bought a new position in PayPal during the second quarter worth about $36,000. Total Investment Management Inc. acquired a new position in PayPal during the second quarter worth approximately $38,000. True Wealth Design LLC raised its stake in PayPal by 285.3% in the third quarter. True Wealth Design LLC now owns 524 shares of the credit services provider's stock valued at $35,000 after buying an additional 388 shares during the period. Finally, Dagco Inc. lifted its position in shares of PayPal by 1,250.0% in the third quarter. Dagco Inc. now owns 540 shares of the credit services provider's stock valued at $36,000 after buying an additional 500 shares during the last quarter. Institutional investors own 68.32% of the company's stock.

Analysts Set New Price Targets

Several equities analysts have recently weighed in on PYPL shares. KGI Securities reissued a "hold" rating and issued a $55.00 price objective on shares of PayPal in a research report on Monday, March 2nd. Mizuho set a $60.00 price objective on shares of PayPal in a report on Wednesday, February 4th. Cantor Fitzgerald lowered their target price on shares of PayPal from $60.00 to $42.00 and set a "neutral" rating on the stock in a report on Monday, February 9th. William Blair reiterated a "market perform" rating on shares of PayPal in a research report on Tuesday, February 3rd. Finally, Deutsche Bank Aktiengesellschaft cut their price target on PayPal from $75.00 to $65.00 and set a "hold" rating for the company in a research note on Friday, December 5th. Eight investment analysts have rated the stock with a Buy rating, thirty-one have given a Hold rating and six have issued a Sell rating to the company's stock. According to MarketBeat, PayPal has an average rating of "Hold" and an average price target of $59.03.

PayPal Stock Down 1.7%

NASDAQ:PYPL opened at $46.16 on Tuesday. The company has a debt-to-equity ratio of 0.49, a current ratio of 1.29 and a quick ratio of 1.29. PayPal Holdings, Inc. has a one year low of $38.46 and a one year high of $79.50. The firm's 50 day simple moving average is $50.00 and its 200 day simple moving average is $60.38. The company has a market cap of $42.50 billion, a PE ratio of 8.53, a P/E/G ratio of 1.40 and a beta of 1.43.

PayPal (NASDAQ:PYPL - Get Free Report) last posted its quarterly earnings data on Tuesday, February 3rd. The credit services provider reported $1.23 earnings per share for the quarter, missing analysts' consensus estimates of $1.29 by ($0.06). The company had revenue of $8.68 billion during the quarter, compared to analyst estimates of $8.82 billion. PayPal had a net margin of 15.77% and a return on equity of 25.42%. The business's revenue for the quarter was up 4.0% on a year-over-year basis. During the same quarter in the previous year, the company earned $1.19 earnings per share. On average, research analysts anticipate that PayPal Holdings, Inc. will post 5.03 earnings per share for the current year.

PayPal Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, March 25th. Investors of record on Wednesday, March 4th will be issued a $0.14 dividend. The ex-dividend date is Wednesday, March 4th. This represents a $0.56 annualized dividend and a yield of 1.2%. PayPal's dividend payout ratio is presently 10.35%.

PayPal News Summary

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: An investor commentary argues PYPL is undervalued and that the author will keep buying if the market stays “irrational,” signaling some retail/bullish conviction that could support a rebound. PayPal: If The Market Stays Irrational, I'll Keep On Buying More
• Neutral Sentiment: Coverage notes that Wall Street is reassessing PayPal after a roughly 20% share-price drop — commentary that can prolong volatility as analysts and funds re-evaluate models and positioning. Wall Street Reassesses PYPL After 20% Drop — Levi & Korsinsky, LLP
• Negative Sentiment: Multiple law firms and notices confirm a securities-class-action has been filed covering purchasers from Feb 25, 2025 to Feb 2, 2026; several firms are soliciting lead plaintiffs ahead of an April 20, 2026 deadline. The flurry of filings increases headline risk, could lead to litigation costs or settlement exposure, and typically dampens investor sentiment. Bronstein, Gewirtz & Grossman LLC Urges PayPal Holdings, Inc. Investors to Act: Class Action Filed Alleging Investor Harm
• Negative Sentiment: Several additional plaintiff‑soliciting firms (Rosen, Glancy Prongay Wolke, DJS, Schall, RGRD and others) have issued investor notices about the same case and the lead‑plaintiff deadline, keeping the story in the news cycle and increasing the odds of competitive filings and higher legal fees. ROSEN, A RANKED AND LEADING LAW FIRM, Encourages PayPal Holdings, Inc. Investors to Secure Counsel Before Important Deadline in Securities Class Action – PYPL

Insider Buying and Selling at PayPal

In other news, CAO Chris Natali sold 2,208 shares of the business's stock in a transaction that occurred on Tuesday, March 3rd. The shares were sold at an average price of $44.73, for a total value of $98,763.84. Following the transaction, the chief accounting officer owned 1,140 shares in the company, valued at approximately $50,992.20. The trade was a 65.95% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, insider Suzan Kereere sold 13,515 shares of the firm's stock in a transaction that occurred 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 sale, the insider directly owned 30,983 shares of the company's stock, valued at $1,425,837.66. This represents a 30.37% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 87,608 shares of company stock valued at $3,831,535. 0.08% of the stock is currently owned by company insiders.

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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