denkapparat Operations GmbH Raises Holdings in PayPal Holdings, Inc. $PYPL

Key Points

• denkapparat Operations GmbH increased its PayPal stake by 86.1% in the second quarter, bringing its holdings to 46,558 shares valued at approximately $2.01 million. Institutional investors collectively own 68.32% of PayPal.
• Analysts maintain a broadly cautious outlook, with a consensus “Hold” rating and an average price target of $56.03; individual targets range from $53 to $65.
• PayPal exceeded quarterly expectations, reporting $1.38 in adjusted earnings per share and $8.68 billion in revenue, while revenue grew 4.8% year over year. The company also declared a quarterly dividend of $0.14 per share, equivalent to a 1.0% yield.

denkapparat Operations GmbH increased its holdings in PayPal Holdings, Inc. (NASDAQ:PYPL - Free Report) by 86.1% in the second quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 46,558 shares of the credit services provider's stock after buying an additional 21,538 shares during the period. PayPal comprises approximately 0.7% of denkapparat Operations GmbH's investment portfolio, making the stock its 16th biggest holding. denkapparat Operations GmbH's holdings in PayPal were worth $2,010,000 as of its most recent SEC filing.

A number of other hedge funds also recently bought and sold shares of PYPL. Maia Wealth LLC boosted its holdings in shares of PayPal by 2.5% in the 3rd quarter. Maia Wealth LLC now owns 6,404 shares of the credit services provider's stock valued at $424,000 after buying an additional 155 shares in the last quarter. GeoWealth Management LLC grew its position in shares of PayPal by 6.2% in the 3rd quarter. GeoWealth Management LLC now owns 3,214 shares of the credit services provider's stock worth $216,000 after buying an additional 188 shares during the last quarter. Formidable Asset Management LLC raised its stake in shares of PayPal by 0.8% during the 1st quarter. Formidable Asset Management LLC now owns 25,937 shares of the credit services provider's stock worth $1,173,000 after acquiring an additional 205 shares in the last quarter. KPP Advisory Services LLC raised its stake in shares of PayPal by 3.3% during the 1st quarter. KPP Advisory Services LLC now owns 6,625 shares of the credit services provider's stock worth $300,000 after acquiring an additional 214 shares in the last quarter. Finally, Jackson Thornton Wealth Management LLC lifted its position in PayPal by 3.5% during the first quarter. Jackson Thornton Wealth Management LLC now owns 7,110 shares of the credit services provider's stock valued at $322,000 after acquiring an additional 238 shares during the last quarter. Hedge funds and other institutional investors own 68.32% of the company's stock.

Analysts Set New Price Targets

Several brokerages have weighed in on PYPL. Wells Fargo & Company raised their target price on shares of PayPal from $48.00 to $56.00 and gave the company an "equal weight" rating in a research note on Wednesday, July 29th. Truist Financial lowered their price objective on PayPal from $62.00 to $53.00 and set a "hold" rating for the company in a research report on Monday. Telsey Advisory Group downgraded PayPal to a "market perform" rating in a research note on Friday, July 24th. JPMorgan Chase & Co. upped their target price on PayPal from $46.00 to $65.00 and gave the company a "neutral" rating in a research report on Wednesday, July 29th. Finally, Clear Str upgraded PayPal to a "hold" rating in a research note on Thursday, July 16th. Nine research 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's stock. Based on data from MarketBeat, the company presently has a consensus rating of "Hold" and a consensus target price of $56.03.

Key PayPal News

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: Renewed takeover speculation supported the stock. Reports again placed PayPal in the takeover spotlight, with discussion of a potential bid near $50 billion. Although no transaction has been confirmed, the possibility of a strategic buyer provided a catalyst after the failed offer. PayPal edges higher amid renewed takeover speculation
• Positive Sentiment: Cost-cutting may improve operating efficiency. PayPal has eliminated jobs in India and Ireland as part of a previously announced, multiyear restructuring intended to simplify its global operations. The reductions could lower expenses and support management’s turnaround efforts, although near-term restructuring costs and execution risks remain. PayPal cuts 220 India jobs as part of previously announced restructuring plan
• Neutral Sentiment: Reports differ on the scale of the India cuts. Reuters reported approximately 220 positions were eliminated, while Moneycontrol cited reductions of around 600 employees, or roughly 10% of PayPal’s India workforce, across technology, operations, payments and finance. The discrepancy makes the ultimate financial impact unclear. PayPal cuts around 600 jobs in India
• Negative Sentiment: The failed takeover limits near-term upside. Analysis noted that PayPal is trading well below the value associated with the abandoned offer, raising concerns that the deal’s collapse removed a potential valuation floor and left shareholders dependent on an internal turnaround. PayPal: The Bid Is Gone, But So Is The Ceiling
• Negative Sentiment: Low valuation reflects investor skepticism. PayPal trades at roughly 9.8 times earnings versus 23.2 times for the S&P 500, despite a similar operating margin. The discount suggests concerns about growth, transaction economics and the value of the payments volume it processes. What Are You Actually Buying In PayPal Stock?

PayPal Stock Performance

Shares of PYPL stock opened at $56.82 on Friday. The firm has a market capitalization of $48.61 billion, a price-to-earnings ratio of 10.74, a price-to-earnings-growth ratio of 1.17 and a beta of 1.28. The company has a debt-to-equity ratio of 0.55, a current ratio of 1.29 and a quick ratio of 1.29. The business has a fifty day moving average of $54.83 and a 200 day moving average of $48.55. PayPal Holdings, Inc. has a 1 year low of $38.46 and a 1 year high of $79.21.

PayPal (NASDAQ:PYPL - Get Free Report) last announced its quarterly earnings data on Tuesday, July 28th. The credit services provider reported $1.38 earnings per share 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 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 earned $1.40 earnings per share. The company's revenue was up 4.8% on a year-over-year basis. As a group, research analysts expect that PayPal Holdings, Inc. will post 5.38 earnings per share for the current year.

PayPal Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, September 25th. Stockholders of record on Friday, September 4th will be issued a $0.14 dividend. This represents a $0.56 annualized dividend and a dividend yield of 1.0%. The ex-dividend date of this dividend is Friday, September 4th. PayPal's payout ratio is 10.59%.

Insider Activity at PayPal

In other news, CAO Chris Natali sold 1,337 shares of PayPal stock in a transaction that occurred on 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. The trade was a 37.63% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Frank Keller sold 732 shares of the business's stock in a transaction on Wednesday, July 29th. The shares were sold at an average price of $58.10, for a total transaction of $42,529.20. Following the completion of the transaction, the insider owned 41,567 shares of the company's stock, valued at approximately $2,415,042.70. This represents a 1.73% 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 ninety days, insiders sold 6,231 shares of company stock worth $373,924. 0.63% of the stock is owned by corporate insiders.

About PayPal

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.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source