Comprehensive Financial Management LLC Sells 2,046,000 Shares of PayPal Holdings, Inc. $PYPL

Key Points

• Comprehensive Financial Management LLC sold 2.046 million PayPal shares in the second quarter, reducing its stake 7.9% to 23.95 million shares valued at approximately $1.03 billion. PayPal remains the fund’s second-largest holding and represents 33.9% of its portfolio.
• Institutional investors own 68.32% of PayPal, while company insiders have sold 6,231 shares worth about $373,924 over the past 90 days.
• PayPal reported quarterly revenue of $8.68 billion, up 4.8% year over year, and earnings of $1.38 per share, beating consensus estimates. However, analysts maintain a consensus Hold rating, with concerns including the collapse of reported takeover discussions, heightened competition and modest growth.

Comprehensive Financial Management LLC lessened its stake in shares of PayPal Holdings, Inc. (NASDAQ:PYPL - Free Report) by 7.9% in the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 23,950,118 shares of the credit services provider's stock after selling 2,046,000 shares during the quarter. PayPal comprises approximately 33.9% of Comprehensive Financial Management LLC's portfolio, making the stock its 2nd biggest position. Comprehensive Financial Management LLC owned about 2.80% of PayPal worth $1,034,166,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also recently bought and sold shares of PYPL. Keeler Thomas Management LLC raised its position in PayPal by 7.3% in the second quarter. Keeler Thomas Management LLC now owns 77,055 shares of the credit services provider's stock worth $3,327,000 after acquiring an additional 5,234 shares in the last quarter. Proficio Capital Partners LLC acquired a new position in shares of PayPal during the 2nd quarter worth $214,000. BTG Pactual Asset Management US LLC acquired a new position in shares of PayPal during the 2nd quarter worth $276,000. Camelot Portfolios LLC increased its holdings in shares of PayPal by 14.6% in the 2nd quarter. Camelot Portfolios LLC now owns 24,120 shares of the credit services provider's stock valued at $1,042,000 after purchasing an additional 3,080 shares in the last quarter. Finally, RPg Family Wealth Advisory LLC increased its holdings in shares of PayPal by 10.1% in the 2nd quarter. RPg Family Wealth Advisory LLC now owns 72,401 shares of the credit services provider's stock valued at $3,126,000 after purchasing an additional 6,614 shares in the last quarter. 68.32% of the stock is currently owned by hedge funds and other institutional investors.

Insider Buying and Selling at PayPal

In other news, insider Frank Keller sold 732 shares of the company's stock in a transaction dated Wednesday, July 29th. The stock was sold at an average price of $58.10, for a total value of $42,529.20. Following the transaction, the insider owned 41,567 shares in the company, valued at $2,415,042.70. This represents a 1.73% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Suzan Kereere sold 4,162 shares of the stock in a transaction on Tuesday, August 18th. The stock was sold at an average price of $60.96, for a total value of $253,715.52. Following the sale, the insider owned 30,983 shares of the company's stock, valued at approximately $1,888,723.68. This represents a 11.84% decrease in their ownership of the stock. 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. Over the last 90 days, insiders have sold 6,231 shares of company stock valued at $373,924. Corporate insiders own 0.63% of the company's stock.

Key Stories Impacting PayPal

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: RBC Capital initiated or reiterated a Buy rating on PayPal, supporting the view that the company’s depressed valuation and cash-generation potential could provide upside as it executes independently. PayPal Holdings Gets a Buy from RBC Capital
• Positive Sentiment: PayPal is cutting jobs as part of a restructuring plan announced in May. The reductions could lower expenses and improve operating efficiency, though investors will watch for evidence that cost savings can offset slower growth. PayPal Makes Job Cuts
• Positive Sentiment: PayPal’s latest reported quarter showed revenue growth of roughly 4.8% and earnings above consensus estimates. Analysts and commentators also point to opportunities to expand beyond checkout and create new monetization channels. Intuit or PayPal: Which Fintech Is Built for Future Growth?
• Neutral Sentiment: A Truist analyst maintained a Hold view, reflecting a more cautious stance on PayPal’s growth outlook and valuation. PayPal Receives a Hold from Truist Financial
• Neutral Sentiment: PayPal’s fraud-prevention platform is cited as a major application powered by Aerospike, but the announcement concerns Aerospike’s leadership and is not a material new contract or financial update for PayPal. Aerospike Names Don Dama Chief Executive Officer
• Negative Sentiment: Reports say Stripe and Advent abandoned takeover discussions after PayPal’s second-quarter results. The breakdown removes a possible acquisition premium and shifts investor attention back to PayPal’s standalone growth challenges. Why the PayPal Takeover Fell Apart
• Negative Sentiment: Mizuho and Truist reduced their price targets as buyout hopes collapsed. Truist suggested the failed bid could potentially be a negotiating tactic to lower the purchase price, but that remains speculative and does not restore the near-term deal catalyst. PayPal Gets Multiple Target Cuts
• Negative Sentiment: Elon Musk’s X Money is positioning itself around social commerce, creators and payments, adding to concerns about intensifying competition from integrated fintech platforms. X Money Takes Aim at Something Bigger Than PayPal

Wall Street Analyst Weigh In

PYPL has been the topic of a number of research analyst reports. TD Cowen boosted their price objective on shares of PayPal from $48.00 to $59.00 and gave the stock a "hold" rating in a report on Wednesday, July 29th. Clear Str raised shares of PayPal to a "hold" rating in a report on Thursday, July 16th. Weiss Ratings upgraded shares of PayPal from a "hold (c-)" rating to a "hold (c)" rating in a research report on Monday, August 24th. UBS Group set a $45.00 price objective on PayPal in a research note on Wednesday, July 29th. Finally, Citigroup lifted their target price on shares of PayPal from $48.00 to $61.00 and gave the stock a "neutral" rating in a research report on Wednesday, July 29th. Nine analysts have rated the stock with a Buy rating, thirty-four have issued a Hold rating and four have issued a Sell rating to the stock. Based on data from MarketBeat.com, PayPal presently has a consensus rating of "Hold" and a consensus target price of $56.03.

PayPal Price Performance

Shares of NASDAQ PYPL opened at $52.40 on Wednesday. The company has a quick ratio of 1.29, a current ratio of 1.29 and a debt-to-equity ratio of 0.55. The business has a 50 day moving average price of $54.30 and a two-hundred day moving average price of $48.32. The firm has a market cap of $44.83 billion, a PE ratio of 9.91, a price-to-earnings-growth ratio of 1.28 and a beta of 1.29. PayPal Holdings, Inc. has a fifty-two week low of $38.46 and a fifty-two week high of $79.21.

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

PayPal Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, September 25th. Stockholders of record on Friday, September 4th will be given a dividend of $0.14 per share. The ex-dividend date is Friday, September 4th. This represents a $0.56 annualized dividend and a dividend yield of 1.1%. PayPal's dividend payout ratio (DPR) is 10.59%.

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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