Danske Bank A S Purchases New Stake in PayPal Holdings, Inc. $PYPL

Key Points

• Danske Bank acquired 451,249 PayPal shares worth approximately $19.5 million, while institutional investors collectively own 68.32% of the company.
• Analyst sentiment remains mixed: PayPal has an average “Hold” rating and a consensus price target of $56.28, despite several firms raising targets to as high as $70.
• PayPal exceeded quarterly earnings and revenue estimates, reporting $1.38 in EPS and $8.68 billion in revenue, while announcing a quarterly dividend of $0.14 per share.

Danske Bank A S purchased a new stake in shares of PayPal Holdings, Inc. (NASDAQ:PYPL - Free Report) during the second quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund purchased 451,249 shares of the credit services provider's stock, valued at approximately $19,485,000. Danske Bank A S owned approximately 0.05% of PayPal as of its most recent SEC filing.

Several other institutional investors also recently bought and sold shares of the business. Vanguard Group Inc. boosted its position in PayPal by 6.5% during the 4th quarter. Vanguard Group Inc. now owns 90,376,927 shares of the credit services provider's stock worth $5,276,205,000 after purchasing an additional 5,534,462 shares during the period. Rule One Partners LLC purchased a new position in PayPal in the fourth quarter valued at about $2,043,000. Mitsubishi UFJ Asset Management Co. Ltd. acquired a new position in shares of PayPal during the second quarter worth about $97,372,000. S&CO Inc. acquired a new position in shares of PayPal during the second quarter worth about $18,827,000. Finally, Swiss National Bank boosted its position in shares of PayPal by 4.9% in the first quarter. Swiss National Bank now owns 2,608,600 shares of the credit services provider's stock worth $117,987,000 after buying an additional 121,400 shares during the period. 68.32% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

PYPL has been the subject of a number of recent research reports. Argus set a $70.00 target price on PayPal in a research note on Wednesday, July 29th. JPMorgan Chase & Co. boosted their price target on PayPal from $46.00 to $65.00 and gave the stock a "neutral" rating in a research report on Wednesday, July 29th. Daiwa Securities Group upgraded PayPal from a "hold" rating to an "outperform" rating in a report on Wednesday, May 6th. Keefe, Bruyette & Woods increased their price objective on shares of PayPal from $55.00 to $70.00 and gave the company an "outperform" rating in a research report on Wednesday, July 29th. Finally, Robert W. Baird lifted their price objective on shares of PayPal from $50.00 to $57.00 and gave the company a "neutral" rating in a research note on Wednesday, July 29th. Nine equities research analysts have rated the stock with a Buy rating, thirty-four have assigned a Hold rating and four have issued a Sell rating to the company. Based on data from MarketBeat, the company presently has an average rating of "Hold" and an average target price of $56.28.

Key Stories Impacting PayPal

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: Takeover speculation supported the stock. Deal chatter involving a possible Stripe and Advent International offer resurfaced, encouraging investors to view PayPal as a potential acquisition target. No offer or transaction has been confirmed, so the catalyst remains speculative. PayPal takeover speculation
• Positive Sentiment: Tuition-payment integrations expand PayPal’s potential transaction volume. PayPal and Venmo are now available through Illumia, Nelnet Campus Commerce and TouchNet, with participating schools including Bellarmine University, Butler University, Kansas State University, Michigan State University and Texas Tech. The initiative adds a recurring, high-value payment use case, though its near-term revenue contribution is unclear. PayPal and Venmo tuition-payment expansion
• Positive Sentiment: PayPal outperformed some buy-now-pay-later peers. Klarna and Affirm declined as PayPal remained positive, suggesting investors may be favoring the scale, established customer base and broader financial-services platform of more mature payment companies. PayPal and BNPL stock rotation
• Neutral Sentiment: Options pricing reflects substantial uncertainty. The options market implies a broad potential trading range over the coming year, consistent with uncertainty surrounding PayPal’s turnaround prospects and possible corporate activity. PayPal options outlook
• Neutral Sentiment: An insider sale was a modest cautionary signal. Suzan Kereere sold 4,162 shares worth approximately $253,716 under a pre-arranged Rule 10b5-1 plan. She retained 30,983 shares, reducing the significance of the transaction as an indicator of business prospects. PayPal insider sale filing
• Negative Sentiment: Competitive and valuation risks remain. TikTok is reportedly developing a peer-to-peer payment feature that could challenge Venmo’s social-payments positioning. Jim Cramer also warned that some fintech stocks, including PayPal, may be priced for optimistic outcomes. TikTok peer-to-peer payment report

Insiders Place Their Bets

In other news, insider Suzan Kereere sold 4,162 shares of the firm's stock in a transaction dated Tuesday, August 18th. The shares were sold at an average price of $60.96, for a total value of $253,715.52. Following the transaction, the insider directly owned 30,983 shares in the company, valued at approximately $1,888,723.68. This trade represents a 11.84% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Chris Natali sold 1,337 shares of PayPal stock in a transaction dated Wednesday, July 29th. The shares were 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. This trade represents a 37.63% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 14,774 shares of company stock valued at $738,249. Company insiders own 0.63% of the company's stock.

PayPal Price Performance

Shares of NASDAQ PYPL opened at $62.30 on Friday. PayPal Holdings, Inc. has a twelve month low of $38.46 and a twelve month high of $79.21. The company has a current ratio of 1.29, a quick ratio of 1.29 and a debt-to-equity ratio of 0.55. The company has a market capitalization of $53.30 billion, a price-to-earnings ratio of 11.78, a price-to-earnings-growth ratio of 1.49 and a beta of 1.30. The business has a 50 day simple moving average of $51.73 and a 200-day simple moving average of $47.42.

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

PayPal Dividend Announcement

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 issued a dividend of $0.14 per share. 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 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.

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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