Delta Global Management LP Makes New $2.08 Million Investment in PayPal Holdings, Inc. $PYPL

Key Points

• Delta Global Management LP opened a new position in PayPal during the first quarter, buying 45,974 shares worth about $2.08 million.
• Institutional ownership in PayPal remains heavy, with 68.32% of shares held by institutions and hedge funds. Several other large investors, including Vanguard and the Swiss National Bank, also increased their stakes.
• Analysts remain mixed on PYPL: the consensus rating is Hold with a $54.96 price target, while recent news includes a Truist upgrade and reports of a possible $53 billion takeover bid from Stripe and Advent International.

Delta Global Management LP bought a new position in shares of PayPal Holdings, Inc. (NASDAQ:PYPL - Free Report) during the 1st quarter, according to its most recent Form 13F filing with the SEC. The institutional investor bought 45,974 shares of the credit services provider's stock, valued at approximately $2,079,000.

A number of other institutional investors have also recently modified their holdings of PYPL. Vanguard Group Inc. grew its position in PayPal by 6.5% in the fourth quarter. Vanguard Group Inc. now owns 90,376,927 shares of the credit services provider's stock worth $5,276,205,000 after acquiring an additional 5,534,462 shares during the period. Rule One Partners LLC acquired a new position in shares of PayPal in the 4th quarter valued at $2,043,000. Step Capital Management Pte. Ltd. purchased a new position in shares of PayPal during the 4th quarter worth $6,130,000. Swiss National Bank grew its holdings in shares of PayPal by 4.9% during the 1st quarter. Swiss National Bank now owns 2,608,600 shares of the credit services provider's stock worth $117,987,000 after purchasing an additional 121,400 shares during the period. Finally, Easterly Investment Partners LLC increased its position in shares of PayPal by 705.2% during the 4th quarter. Easterly Investment Partners LLC now owns 100,651 shares of the credit services provider's stock worth $5,876,000 after purchasing an additional 88,151 shares during the last quarter. 68.32% of the stock is currently owned by institutional investors and hedge funds.

Insider Activity

In related news, insider Frank Keller sold 4,612 shares of the business's stock in a transaction on Wednesday, June 3rd. The stock was sold at an average price of $42.54, for a total transaction of $196,194.48. Following the completion of the transaction, the insider directly owned 41,567 shares of the company's stock, valued at $1,768,260.18. The trade was a 9.99% 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 Suzan Kereere sold 3,379 shares of the company's stock in a transaction dated Wednesday, June 3rd. The stock was sold at an average price of $42.79, for a total value of $144,587.41. Following the sale, the insider owned 30,983 shares in the company, valued at approximately $1,325,762.57. This trade represents a 9.83% 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 have sold 20,612 shares of company stock worth $966,623. Corporate insiders own 0.63% of the company's stock.

Analysts Set New Price Targets

A number of research firms have commented on PYPL. Weiss Ratings reaffirmed a "hold (c-)" rating on shares of PayPal in a research report on Friday, May 8th. HSBC began coverage on shares of PayPal in a research note on Friday. They issued a "buy" rating on the stock. Bank of America lowered their price objective on shares of PayPal from $55.00 to $53.00 and set a "neutral" rating for the company in a research report on Wednesday, May 6th. BTIG Research reiterated a "neutral" rating on shares of PayPal in a report on Wednesday, July 15th. Finally, William Blair reissued a "market perform" rating on shares of PayPal in a research report on Wednesday, July 15th. Nine analysts have rated the stock with a Buy rating, thirty-four have given a Hold rating and four have issued a Sell rating to the company. According to data from MarketBeat.com, PayPal presently has a consensus rating of "Hold" and a consensus price target of $54.96.

PayPal Trading Up 0.3%

Shares of PYPL stock opened at $56.15 on Friday. PayPal Holdings, Inc. has a fifty-two week low of $38.46 and a fifty-two week high of $79.50. The company has a 50 day moving average price of $45.70 and a 200 day moving average price of $47.14. The stock has a market capitalization of $49.53 billion, a P/E ratio of 10.53, a price-to-earnings-growth ratio of 1.40 and a beta of 1.33. 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 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.27 by $0.07. PayPal had a net margin of 15.00% and a return on equity of 25.02%. The company had revenue of $8.35 billion for the quarter, compared to analyst estimates of $8.05 billion. During the same period in the prior year, the business earned $1.33 EPS. The firm's quarterly revenue was up 7.2% on a year-over-year basis. Equities research analysts predict that PayPal Holdings, Inc. will post 5.32 EPS for the current fiscal year.

PayPal Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Thursday, June 25th. Stockholders of record on Thursday, June 4th were given a dividend of $0.14 per share. The ex-dividend date of this dividend was Thursday, June 4th. This represents a $0.56 dividend on an annualized basis and a dividend yield of 1.0%. PayPal's dividend payout ratio is currently 10.51%.

PayPal News Roundup

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: Truist Securities upgraded PayPal from Sell to Hold and raised its price target to $57 from $44, signaling improved confidence in the stock and helping sentiment around PYPL. Article: Benzinga report on Truist upgrade
• Positive Sentiment: Reports that Stripe and Advent International have approached PayPal with a $53 billion takeover bid have fueled speculation that PYPL could be worth more in a deal, boosting investor interest. Article: Yahoo Finance takeover report
• Neutral Sentiment: Options traders are pricing in about an 8.8% swing around next week’s earnings, indicating elevated expectations and potential volatility rather than a clear directional view. Article: TipRanks earnings volatility report
• Neutral Sentiment: Analysts say investors are focused on TPV growth, platform expansion, margins, and competition heading into earnings, with macro uncertainty still clouding the outlook. Article: Zacks preview
• Neutral Sentiment: PayPal remains a low-valuation name by market standards, with investors noting its roughly 11x earnings multiple and ongoing share repurchases as support for long-term value. Article: 24/7 Wall St. valuation note

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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