Chou Associates Management Inc. bought a new position in shares of PayPal Holdings, Inc. (NASDAQ:PYPL - Free Report) in the second quarter, according to the company in its most recent filing with the SEC. The fund bought 167,400 shares of the credit services provider's stock, valued at approximately $7,228,000. PayPal accounts for 3.3% of Chou Associates Management Inc.'s investment portfolio, making the stock its 10th biggest position.
A number of other institutional investors and hedge funds have also recently bought and sold shares of the business. Bard Associates Inc. acquired a new stake in shares of PayPal in the fourth quarter worth $25,000. Kelleher Financial Advisors acquired a new position in shares of PayPal during the 3rd quarter valued at $30,000. Caitong International Asset Management Co. Ltd boosted its position in PayPal by 15,233.3% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 460 shares of the credit services provider's stock worth $27,000 after purchasing an additional 457 shares during the period. Safe Harbor Fiduciary LLC purchased a new stake in PayPal during the 4th quarter worth $28,000. Finally, Advocate Investing Services LLC acquired a new stake in PayPal in the 4th quarter valued at $30,000. Institutional investors and hedge funds own 68.32% of the company's stock.
Analyst Ratings Changes
PYPL has been the topic of a number of recent research reports. JPMorgan Chase & Co. boosted their price objective on PayPal from $46.00 to $65.00 and gave the stock a "neutral" rating in a research note on Wednesday, July 29th. Canaccord Genuity Group reiterated a "hold" rating and issued a $55.00 target price on shares of PayPal in a research note on Wednesday, July 29th. Citigroup raised their target price on PayPal from $48.00 to $61.00 and gave the company a "neutral" rating in a report on Wednesday, July 29th. HSBC initiated coverage on PayPal in a research report on Friday, July 24th. They set a "buy" rating on the stock. Finally, William Blair restated a "market perform" rating on shares of PayPal in a report on Wednesday, July 15th. Nine equities research analysts have rated the stock with a Buy rating, thirty-four have given a Hold rating and four have given a Sell rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Hold" and an average target price of $56.28.
Read Our Latest Analysis on PYPL
Trending Headlines about PayPal
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
PayPal Stock Down 1.2%
Shares of PayPal stock opened at $61.55 on Friday. PayPal Holdings, Inc. has a 1-year low of $38.46 and a 1-year high of $79.21. The company has a market capitalization of $52.65 billion, a PE ratio of 11.64, a P/E/G ratio of 1.50 and a beta of 1.30. The company has a debt-to-equity ratio of 0.55, a current ratio of 1.29 and a quick ratio of 1.29. The business has a 50-day moving average of $52.13 and a 200-day moving average of $47.51.
PayPal (NASDAQ:PYPL - Get Free Report) last released its quarterly earnings results on Tuesday, July 28th. The credit services provider reported $1.38 EPS for the quarter, topping the consensus estimate of $1.28 by $0.10. The business had revenue of $8.68 billion for the quarter, compared to analysts' expectations of $8.47 billion. PayPal had a return on equity of 24.39% and a net margin of 14.36%.The company's revenue was up 4.8% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $1.40 earnings per share. As a group, equities analysts forecast that PayPal Holdings, Inc. will post 5.38 EPS for the current fiscal year.
PayPal Announces Dividend
The firm also recently announced a quarterly dividend, which will be paid on Friday, September 25th. Shareholders of record on Friday, September 4th will be given a $0.14 dividend. This represents a $0.56 dividend on an annualized basis and a dividend yield of 0.9%. The ex-dividend date of this dividend is Friday, September 4th. PayPal's dividend payout ratio is presently 10.59%.
Insider Activity
In other news, insider Suzan Kereere sold 4,162 shares of the stock in a transaction that occurred on Tuesday, August 18th. The stock was sold at an average price of $60.96, for a total transaction of $253,715.52. Following the completion of the transaction, the insider directly owned 30,983 shares in the company, valued at approximately $1,888,723.68. This represents a 11.84% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Chris Natali sold 1,337 shares of the firm's stock in a transaction that occurred on 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 directly owned 2,216 shares of the company's stock, valued at $128,749.60. The trade was a 37.63% 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 three months, insiders sold 14,774 shares of company stock worth $738,249. 0.63% of the stock is currently owned by insiders.
PayPal Company Profile
(
Free Report)
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.
Further Reading
Want to see what other hedge funds are holding PYPL? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for PayPal Holdings, Inc. (NASDAQ:PYPL - Free Report).
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