Clear Street Group Inc. Buys 378,062 Shares of PayPal Holdings, Inc. $PYPL

Key Points

• Clear Street Group Inc. boosted its PayPal stake by 142.8% in the fourth quarter, buying 378,062 additional shares and bringing its total holding to 642,748 shares worth about $37.5 million.
• PayPal’s latest earnings beat expectations, with Q1 EPS of $1.34 versus the $1.27 estimate and revenue of $8.35 billion topping forecasts; revenue also rose 7.2% year over year.
• Analyst sentiment remains cautious overall, with a consensus rating of Hold and a consensus price target of $55.85, even as some firms modestly adjusted targets and ratings.

Clear Street Group Inc. increased its stake in PayPal Holdings, Inc. (NASDAQ:PYPL - Free Report) by 142.8% during the fourth quarter, according to its most recent filing with the Securities and Exchange Commission. The firm owned 642,748 shares of the credit services provider's stock after purchasing an additional 378,062 shares during the quarter. Clear Street Group Inc. owned approximately 0.07% of PayPal worth $37,524,000 at the end of the most recent quarter.

Several other institutional investors have also recently made changes to their positions in the stock. Maia Wealth LLC lifted its position in shares of PayPal by 2.5% during the third quarter. Maia Wealth LLC now owns 6,404 shares of the credit services provider's stock worth $424,000 after acquiring an additional 155 shares in the last quarter. Transatlantique Private Wealth LLC lifted its position in shares of PayPal by 2.9% during the third quarter. Transatlantique Private Wealth LLC now owns 5,698 shares of the credit services provider's stock worth $382,000 after acquiring an additional 159 shares in the last quarter. Martin & Co. Inc. TN lifted its position in shares of PayPal by 0.3% during the third quarter. Martin & Co. Inc. TN now owns 56,934 shares of the credit services provider's stock worth $3,818,000 after acquiring an additional 175 shares in the last quarter. RWA Wealth Partners LLC lifted its position in shares of PayPal by 0.7% during the third quarter. RWA Wealth Partners LLC now owns 25,043 shares of the credit services provider's stock worth $1,679,000 after acquiring an additional 184 shares in the last quarter. Finally, GeoWealth Management LLC lifted its position in shares of PayPal by 6.2% during the third quarter. GeoWealth Management LLC now owns 3,214 shares of the credit services provider's stock worth $216,000 after acquiring an additional 188 shares in the last quarter. Hedge funds and other institutional investors own 68.32% of the company's stock.

Analyst Upgrades and Downgrades

Several research firms have issued reports on PYPL. The Goldman Sachs Group dropped their target price on PayPal from $41.00 to $40.00 in a research report on Wednesday, May 6th. Raymond James Financial restated a "market perform" rating on shares of PayPal in a research report on Monday, February 23rd. Loop Capital initiated coverage on PayPal in a research report on Tuesday, March 31st. They set a "hold" rating and a $46.00 target price on the stock. Needham & Company LLC reaffirmed a "hold" rating on shares of PayPal in a report on Tuesday, May 5th. Finally, UBS Group upped their price target on shares of PayPal from $44.00 to $48.00 and gave the stock a "neutral" rating in a report on Wednesday, May 6th. Eight investment analysts have rated the stock with a Buy rating, thirty-two have issued a Hold rating and five have assigned a Sell rating to the company. According to data from MarketBeat, the company presently has a consensus rating of "Hold" and a consensus price target of $55.85.

PayPal Trading Up 0.7%

PayPal stock opened at $41.53 on Friday. The stock has a market cap of $36.63 billion, a P/E ratio of 7.79, a PEG ratio of 1.04 and a beta of 1.34. PayPal Holdings, Inc. has a fifty-two week low of $38.46 and a fifty-two week high of $79.50. The firm's fifty day moving average price is $45.85 and its 200-day moving average price is $49.93. The company has a debt-to-equity ratio of 0.47, a quick ratio of 1.26 and a current ratio of 1.26.

PayPal (NASDAQ:PYPL - Get Free Report) last released its earnings results on Tuesday, May 5th. The credit services provider reported $1.34 EPS for the quarter, beating analysts' consensus estimates of $1.27 by $0.07. The business had revenue of $8.35 billion for the quarter, compared to analysts' expectations of $8.05 billion. PayPal had a return on equity of 25.02% and a net margin of 15.00%.The firm's revenue was up 7.2% on a year-over-year basis. During the same quarter in the prior year, the firm earned $1.33 earnings per share. Equities research analysts forecast that PayPal Holdings, Inc. will post 5.3 earnings per share for the current fiscal year.

PayPal Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, June 25th. Investors of record on Thursday, June 4th will be paid a $0.14 dividend. This represents a $0.56 dividend on an annualized basis and a yield of 1.3%. The ex-dividend date of this dividend is Thursday, June 4th. PayPal's dividend payout ratio is currently 10.51%.

Insider Activity at PayPal

In related news, insider Frank Keller sold 10,732 shares of the stock in a transaction on Wednesday, April 29th. The stock was sold at an average price of $49.96, for a total value of $536,170.72. Following the transaction, the insider owned 41,567 shares of the company's stock, valued at $2,076,687.32. This represents a 20.52% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Suzan Kereere sold 3,379 shares of the stock in a transaction on Wednesday, June 3rd. The shares were sold at an average price of $42.79, for a total value of $144,587.41. Following the completion of the transaction, the insider directly owned 30,983 shares in the company, valued at approximately $1,325,762.57. This represents a 9.83% 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. Insiders have sold a total of 20,612 shares of company stock valued at $966,623 over the last 90 days. 0.63% of the stock is owned by insiders.

PayPal 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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