Cullinan Associates Inc. lessened its holdings in PayPal Holdings, Inc. (NASDAQ:PYPL - Free Report) by 25.9% during the 2nd quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund owned 82,073 shares of the credit services provider's stock after selling 28,747 shares during the period. Cullinan Associates Inc.'s holdings in PayPal were worth $3,544,000 as of its most recent filing with the Securities & Exchange Commission.
A number of other hedge funds have also modified their holdings of PYPL. BlackRock Inc. purchased a new stake in PayPal in the 2nd quarter valued at about $3,236,989,000. Bank of America Corp DE purchased a new position in PayPal during the second quarter worth about $975,563,000. Norges Bank acquired a new stake in shares of PayPal during the fourth quarter valued at about $949,758,000. Primecap Management Co. CA acquired a new stake in shares of PayPal during the second quarter valued at about $422,092,000. Finally, Corient Private Wealth LP purchased a new stake in shares of PayPal in the 2nd quarter valued at approximately $20,758,000. 68.32% of the stock is currently owned by hedge funds and other institutional investors.
Insider Activity at PayPal
In related news, CAO Chris Natali sold 1,337 shares of the business's stock in a transaction 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 completion of the transaction, 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. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Frank Keller sold 4,612 shares of the company's stock in a transaction dated Wednesday, June 3rd. The stock was sold at an average price of $42.54, for a total value of $196,194.48. Following the sale, the insider owned 41,567 shares in the company, valued at approximately $1,768,260.18. This trade represents a 9.99% 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. Over the last three months, insiders sold 14,774 shares of company stock worth $738,249. Company insiders own 0.63% of the company's stock.
PayPal Price Performance
Shares of PYPL opened at $53.66 on Friday. The company has a market cap of $45.90 billion, a P/E ratio of 10.14, a PEG ratio of 1.31 and a beta of 1.30. PayPal Holdings, Inc. has a fifty-two week low of $38.46 and a fifty-two week high of $79.21. 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 firm's 50 day moving average price is $53.88 and its 200 day moving average price is $48.11.
PayPal (NASDAQ:PYPL - Get Free Report) last issued its quarterly earnings results on Tuesday, July 28th. The credit services provider reported $1.38 EPS for the quarter, beating the consensus estimate of $1.28 by $0.10. The company had revenue of $8.68 billion during the quarter, compared to analysts' expectations of $8.47 billion. PayPal had a net margin of 14.36% and a return on equity of 24.39%. The firm's revenue was up 4.8% compared to the same quarter last year. During the same quarter last year, the company posted $1.40 EPS. On average, research analysts forecast that PayPal Holdings, Inc. will post 5.38 earnings per share for the current fiscal year.
PayPal Announces Dividend
The business also recently announced a quarterly dividend, which will be paid on Friday, September 25th. Investors of record on Friday, September 4th will be issued a $0.14 dividend. The ex-dividend date is Friday, September 4th. This represents a $0.56 dividend on an annualized basis and a yield of 1.0%. PayPal's dividend payout ratio (DPR) is 10.59%.
Analyst Upgrades and Downgrades
PYPL has been the topic of several recent analyst reports. BTIG Research restated a "neutral" rating on shares of PayPal in a report on Wednesday, July 15th. HSBC began coverage on PayPal in a research report on Friday, July 24th. They issued a "buy" rating on the stock. Keefe, Bruyette & Woods upped their price target on PayPal from $55.00 to $70.00 and gave the stock an "outperform" rating in a research note on Wednesday, July 29th. Weiss Ratings upgraded PayPal from a "hold (c-)" rating to a "hold (c)" rating in a research report on Monday, August 24th. Finally, William Blair reaffirmed a "market perform" rating on shares of PayPal in a research note on Wednesday, July 15th. Nine investment analysts have rated the stock with a Buy rating, thirty-four have issued a Hold rating and four have assigned a Sell rating to the company's stock. Based on data from MarketBeat, the stock presently has an average rating of "Hold" and an average price target of $56.14.
View Our Latest Analysis on PayPal
Key Stories Impacting PayPal
Here are the key news stories impacting PayPal this week:
- Positive Sentiment: Some market observers argue that PayPal’s board protected potentially greater long-term shareholder value by rejecting the reported $60.50-per-share offer, which valued the company at approximately $53 billion. Options pricing also continues to indicate a bullish bias among some traders. PayPal Drops 12% Overnight on Dead Stripe Deal
- Positive Sentiment: PayPal remains an independent turnaround story, with recent initiatives expanding PayPal and Venmo tuition-payment integrations through campus platforms. Investors will now focus more closely on whether management can improve growth and execution without takeover support. PayPal Tuition Payment Push
- Neutral Sentiment: The failed transaction removes a major change-of-control catalyst and returns attention to PayPal’s standalone fundamentals. The company recently exceeded quarterly earnings and revenue expectations, but revenue growth remained modest and earnings per share declined year over year, leaving execution of its turnaround as the key valuation driver.
- Negative Sentiment: The reported withdrawal eliminates the takeover premium that had supported PYPL during weeks of deal speculation. Reports cited valuation concerns, regulatory hurdles and a breakdown in negotiations; the abrupt reversal has therefore prompted investors to reassess PayPal at its lower standalone valuation. PayPal Shares Fall After Consortium Abandons Takeover Pursuit
- Negative Sentiment: Analysts, including Mizuho, are highlighting risks facing PayPal after the deal collapsed. The heavy trading volume and test of the 50-day moving average indicate heightened uncertainty as investors await evidence that the company can generate sufficient growth independently. Why PayPal Stock Is Down and What Mizuho Thinks Comes Next
About PayPal
(
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.
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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).
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.
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