Deutsche Bank AG Decreases Stock Position in PayPal Holdings, Inc. $PYPL

Key Points

• Deutsche Bank AG cut its PayPal stake by 17.6% in the fourth quarter, selling 1.68 million shares and ending with about 7.88 million shares valued at roughly $459.8 million.
• PayPal’s recent fundamentals were mixed but solid: the company beat quarterly EPS estimates and topped revenue expectations, with revenue up 7.2% year over year.
• Analysts remain cautious on PYPL, with a consensus rating of “Hold” and a consensus price target of $55.85, even as PayPal announced a quarterly dividend of $0.14 per share.

Deutsche Bank AG lessened its stake in shares of PayPal Holdings, Inc. (NASDAQ:PYPL - Free Report) by 17.6% during the 4th quarter, according to its most recent 13F filing with the SEC. The firm owned 7,875,530 shares of the credit services provider's stock after selling 1,680,321 shares during the period. Deutsche Bank AG owned approximately 0.86% of PayPal worth $459,773,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors also recently bought and sold shares of the stock. Brighton Jones LLC increased its stake in PayPal by 15.2% in the fourth quarter. Brighton Jones LLC now owns 6,989 shares of the credit services provider's stock worth $596,000 after purchasing an additional 924 shares during the period. Revolve Wealth Partners LLC purchased a new stake in PayPal in the fourth quarter worth $248,000. Sivia Capital Partners LLC increased its stake in PayPal by 41.5% in the second quarter. Sivia Capital Partners LLC now owns 4,470 shares of the credit services provider's stock worth $332,000 after purchasing an additional 1,310 shares during the period. United Bank increased its stake in PayPal by 40.1% in the second quarter. United Bank now owns 17,388 shares of the credit services provider's stock worth $1,292,000 after purchasing an additional 4,974 shares during the period. Finally, Federated Hermes Inc. increased its stake in PayPal by 17.9% in the second quarter. Federated Hermes Inc. now owns 18,909 shares of the credit services provider's stock worth $1,405,000 after purchasing an additional 2,865 shares during the period. Hedge funds and other institutional investors own 68.32% of the company's stock.

Insider Activity at PayPal

In related news, CAO Chris Natali sold 1,337 shares of the firm's stock in a transaction dated Wednesday, April 29th. The stock was sold at an average price of $49.46, for a total transaction of $66,128.02. Following the sale, the chief accounting officer owned 1,586 shares of the company's stock, valued at $78,443.56. This trade represents a 45.74% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Frank Keller sold 4,612 shares of the firm's stock in a transaction dated Wednesday, June 3rd. The shares were sold at an average price of $42.54, for a total value of $196,194.48. Following the sale, the insider directly owned 41,567 shares in the company, valued at approximately $1,768,260.18. The trade was 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. Insiders have sold a total of 20,612 shares of company stock valued at $966,623 over the last quarter. 0.63% of the stock is owned by corporate insiders.

Key Headlines Impacting PayPal

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: PayPal announced a new embedded payments partnership with Shopware, launching Shopware Payments and expanding PayPal checkout options for merchants. This could help broaden PayPal’s reach across ecommerce platforms and support future payment volume growth. Shopware Payments Deepens PayPal’s Embedded Reach As Valuation Gap Widens
• Positive Sentiment: PayPal also highlighted consumer spending research showing 44% of Canadian shoppers would cut everyday expenses to fund summer soccer-related spending, reinforcing its visibility into spending behavior and potentially supporting payment activity around major events. Goal vs. Going Out: New PayPal Poll shows 44% of Canadians surveyed would sideline everyday spending for summer soccer
• Neutral Sentiment: Analyst commentary indicated PayPal continues to be viewed as a “Hold”, suggesting investors remain cautious and are waiting for clearer evidence of sustained growth or margin improvement. PayPal Holdings, Inc. NASDAQ: PYPL Receives Consensus Rating of "Hold" from Analysts
• Negative Sentiment: Recent coverage noted PayPal’s stock has been declining more than the broader market, reflecting ongoing investor concern despite the company’s solid earnings history and low valuation. Paypal (PYPL) Declines More Than Market: Some Information for Investors
• Negative Sentiment: Another article argued PayPal may be shifting from a growth story to a deep-value play, which can signal that the market still doubts a near-term reacceleration in growth. PayPal: Goodbye Growth, Hello Deep Value

Analysts Set New Price Targets

PYPL has been the topic of a number of recent analyst reports. Mizuho reiterated a "neutral" rating and issued a $50.00 target price (down from $60.00) on shares of PayPal in a research note on Thursday, April 16th. Weiss Ratings reiterated a "hold (c-)" rating on shares of PayPal in a research note on Friday, May 8th. Needham & Company LLC reiterated a "hold" rating on shares of PayPal in a research note on Tuesday, May 5th. Wolfe Research reiterated a "sell" rating on shares of PayPal in a research note on Monday, February 23rd. Finally, Citigroup increased their price target on PayPal from $42.00 to $48.00 and gave the stock a "neutral" rating in a research report on Wednesday, April 8th. Eight research analysts have rated the stock with a Buy rating, thirty-two have assigned a Hold rating and five have issued a Sell rating to the company's stock. Based on data from MarketBeat.com, PayPal has a consensus rating of "Hold" and a consensus target price of $55.85.

PayPal Price Performance

PYPL opened at $40.70 on Thursday. PayPal Holdings, Inc. has a 12-month low of $38.46 and a 12-month high of $79.50. The company has a current ratio of 1.26, a quick ratio of 1.26 and a debt-to-equity ratio of 0.47. The business's fifty day simple moving average is $45.99 and its 200-day simple moving average is $50.12. The company has a market capitalization of $35.90 billion, a price-to-earnings ratio of 7.64, a PEG ratio of 1.04 and a beta of 1.34.

PayPal (NASDAQ:PYPL - Get Free Report) last posted its quarterly 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 return on equity of 25.02% and a net margin of 15.00%.The business had revenue of $8.35 billion for the quarter, compared to the consensus estimate of $8.05 billion. During the same quarter in the prior year, the company earned $1.33 EPS. The business's revenue was up 7.2% compared to the same quarter last year. On average, equities research analysts anticipate that PayPal Holdings, Inc. will post 5.3 earnings per share for the current fiscal year.

PayPal Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, June 25th. Investors of record on Thursday, June 4th will be given a dividend of $0.14 per share. The ex-dividend date of this dividend is Thursday, June 4th. This represents a $0.56 dividend on an annualized basis and a yield of 1.4%. PayPal's dividend payout ratio (DPR) is presently 10.51%.

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.

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