CX Institutional Grows Position in PayPal Holdings, Inc. $PYPL

Key Points

• CX Institutional increased its PayPal position by 1,045.3% in the third quarter, acquiring 97,865 additional shares for a total holding of 107,227 shares valued at approximately $5.6 million. Institutional investors and hedge funds collectively own 68.32% of PayPal.
• PayPal’s latest quarterly results exceeded expectations, with EPS of $1.38 versus the $1.28 consensus and revenue of $8.68 billion, up 4.8% year over year. The company also maintains a quarterly dividend of $0.14, or a 1.1% annualized yield.
• Despite its low valuation and potential BNPL-driven transaction growth, PayPal faces concerns about declining branded-checkout market share. Analysts broadly rate the stock a “Hold,” with a consensus price target of $56.31 versus the reported share price of $52.80.

CX Institutional increased its position in PayPal Holdings, Inc. (NASDAQ:PYPL - Free Report) by 1,045.3% during the 3rd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 107,227 shares of the credit services provider's stock after acquiring an additional 97,865 shares during the quarter. CX Institutional's holdings in PayPal were worth $5,633,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds have also recently bought and sold shares of PYPL. BlackRock Inc. acquired a new stake in PayPal during the second quarter worth about $3,236,989,000. Bank of America Corp DE lifted its holdings in PayPal by 67.9% during the 1st quarter. Bank of America Corp DE now owns 25,614,720 shares of the credit services provider's stock valued at $1,158,554,000 after purchasing an additional 10,356,256 shares during the last quarter. Amundi grew its position in PayPal by 227.6% during the 1st quarter. Amundi now owns 13,804,208 shares of the credit services provider's stock worth $624,364,000 after acquiring an additional 9,590,488 shares during the last quarter. Primecap Management Co. CA bought a new position in shares of PayPal in the second quarter worth about $422,092,000. Finally, Dimensional Fund Advisors LP boosted its position in PayPal by 4.3% in the 1st quarter. Dimensional Fund Advisors LP now owns 9,179,771 shares of the credit services provider's stock valued at $415,192,000 after buying an additional 376,530 shares during the last quarter. Institutional investors and hedge funds own 68.32% of the company's stock.

PayPal News Roundup

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: PayPal’s holiday-shopping survey indicates that some consumers expect to use buy now, pay later (BNPL) products to spread payments over time. Greater BNPL adoption could increase transaction volume and strengthen PayPal’s role in seasonal e-commerce spending. PayPal hints at BNPL holiday use
• Positive Sentiment: Zacks describes PayPal as a potentially attractive long-term value stock, supported by its low valuation and solid financial position. The company’s recent earnings beat and revenue growth add to the bullish valuation case, although they do not resolve its growth challenges. Why PayPal is a Top Value Stock for the Long-Term
• Neutral Sentiment: PayPal is receiving elevated attention from Zacks users and other investors, but the “trending stock” coverage reflects investor interest rather than a new business catalyst. What to Know Beyond Why PayPal is a Trending Stock
• Neutral Sentiment: Reports that PayPal could attract acquirers are supporting takeover speculation, but no transaction or formal offer has been announced. Any takeover premium therefore remains uncertain. PayPal Stock Analysis: Value Stock or Value Trap?
• Negative Sentiment: PayPal is losing market share in branded checkout, the key issue weighing on the stock despite its sound finances. A sustained decline could limit revenue growth and make the low valuation a potential value trap. Investors are looking for evidence that management can reverse this trend. What Would Send PayPal Stock Back to Its High?

Insider Buying and Selling at PayPal

In related news, insider Suzan Kereere sold 3,379 shares of the company's stock in a transaction dated Thursday, September 3rd. The stock was sold at an average price of $55.72, for a total transaction of $188,277.88. Following the sale, the insider owned 30,983 shares in the company, valued at $1,726,372.76. This represents a 9.83% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Chris Natali sold 552 shares of the firm's stock in a transaction that occurred on Thursday, September 3rd. The stock was sold at an average price of $54.80, for a total transaction of $30,249.60. Following the sale, the chief accounting officer directly owned 2,400 shares of the company's stock, valued at approximately $131,520. This trade represents a 18.70% 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. In the last 90 days, insiders sold 14,774 shares of company stock valued at $848,095. 0.63% of the stock is currently owned by company insiders.

PayPal Stock Down 0.5%

NASDAQ PYPL opened at $52.80 on Friday. The company has a debt-to-equity ratio of 0.55, a current ratio of 1.29 and a quick ratio of 1.29. PayPal Holdings, Inc. has a fifty-two week low of $38.46 and a fifty-two week high of $79.21. The stock has a market capitalization of $45.17 billion, a PE ratio of 9.98, a PEG ratio of 1.13 and a beta of 1.27. The business has a fifty day moving average price of $56.48 and a two-hundred day moving average price of $49.78.

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

PayPal Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Friday, September 25th. Stockholders of record on Friday, September 4th were paid a $0.14 dividend. The ex-dividend date of this dividend was Friday, September 4th. This represents a $0.56 annualized dividend and a dividend yield of 1.1%. PayPal's dividend payout ratio is presently 10.59%.

Wall Street Analyst Weigh In

A number of equities analysts have issued reports on PYPL shares. Barclays raised their price objective on shares of PayPal from $55.00 to $57.00 and gave the company an "equal weight" rating in a research note on Wednesday, July 29th. Telsey Advisory Group downgraded PayPal to a "market perform" rating in a research report on Friday, July 24th. Weiss Ratings raised PayPal from a "hold (c-)" rating to a "hold (c)" rating in a report on Monday, August 24th. BNP Paribas Exane raised their target price on shares of PayPal from $43.50 to $52.00 and gave the company a "neutral" rating in a research note on Tuesday, July 21st. Finally, Truist Financial lowered their target price on shares of PayPal from $62.00 to $53.00 and set a "hold" rating on the stock in a report on Monday, August 31st. Nine equities research analysts have rated the stock with a Buy rating, thirty-four have assigned a Hold rating and four have given a Sell rating to the company. According to MarketBeat.com, the company currently has an average rating of "Hold" and a consensus target price of $56.31.

PayPal Profile

PayPal Holdings, Inc operates a global digital payments platform that enables consumers and businesses to send, receive, and manage money online and through mobile devices. Its services support online checkout, peer-to-peer payments, money transfers, digital wallets, and payment processing for merchants.

The company's principal consumer brands include PayPal and Venmo, while its merchant and commerce offerings include Braintree, PayPal Zettle, and PayPal Complete Payments. PayPal also operates Xoom, a service for international money transfers, and Honey, a shopping and rewards platform.

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