DV Trading LLC Raises Holdings in PayPal Holdings, Inc. $PYPL

Key Points

• DV Trading increased its PayPal stake by 1,571.6% in the first quarter, ending with 34,719 shares valued at approximately $1.57 million. Institutional investors collectively own 68.32% of PayPal’s outstanding stock.
• PayPal reported better-than-expected quarterly results, with adjusted EPS of $1.38 and revenue of $8.68 billion, while raising its full-year outlook on improving checkout activity, Venmo growth and cost savings.
• Despite several analysts raising price targets, the broader analyst consensus remains “Hold” with a $55.50 target price. Insiders sold 10,612 shares worth $484,534 over the past three months, though the transactions were conducted under pre-arranged trading plans.

DV Trading LLC grew its holdings in PayPal Holdings, Inc. (NASDAQ:PYPL - Free Report) by 1,571.6% in the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 34,719 shares of the credit services provider's stock after buying an additional 32,642 shares during the quarter. DV Trading LLC's holdings in PayPal were worth $1,570,000 at the end of the most recent quarter.

Other institutional investors have also recently modified their holdings of the company. Vanguard Group Inc. boosted its holdings in PayPal by 6.5% during 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 buying an additional 5,534,462 shares in the last quarter. Rule One Partners LLC purchased a new position in PayPal in the fourth quarter valued at about $2,043,000. Step Capital Management Pte. Ltd. purchased a new position in PayPal in the fourth quarter valued at about $6,130,000. Swiss National Bank lifted its position 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 valued at $117,987,000 after acquiring an additional 121,400 shares during the period. Finally, Easterly Investment Partners LLC lifted 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 valued at $5,876,000 after acquiring an additional 88,151 shares during the period. 68.32% of the stock is currently owned by hedge funds and other institutional investors.

Insider Transactions at PayPal

In related news, CAO Chris Natali sold 1,337 shares of the stock in a transaction on Wednesday, July 29th. The stock was sold at an average price of $58.10, for a total transaction of $77,679.70. Following the sale, the chief accounting officer 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 transaction was disclosed in a legal filing 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, insider Frank Keller sold 4,612 shares of PayPal stock in a transaction dated Wednesday, June 3rd. The stock was sold at an average price of $42.54, for a total value of $196,194.48. Following the sale, the insider owned 41,567 shares of the company's stock, valued at approximately $1,768,260.18. This represents a 9.99% 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. Insiders sold a total of 10,612 shares of company stock valued at $484,534 over the last three months. 0.63% of the stock is currently owned by insiders.

Analyst Ratings Changes

Several brokerages have recently commented on PYPL. Bank of America decreased their price target on PayPal from $55.00 to $53.00 and set a "neutral" rating on the stock in a research note on Wednesday, May 6th. Clear Str raised PayPal to a "hold" rating in a research note on Thursday, July 16th. Citigroup lifted their price objective on PayPal from $48.00 to $61.00 and gave the stock a "neutral" rating in a report on Wednesday. Truist Financial upgraded PayPal from a "sell" rating to a "hold" rating and boosted their target price for the stock from $44.00 to $57.00 in a research report on Friday, July 24th. Finally, TD Cowen upped their target price on PayPal from $48.00 to $59.00 and gave the company a "hold" rating in a report on Wednesday. Nine investment 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 stock. According to MarketBeat, PayPal presently has a consensus rating of "Hold" and a consensus target price of $55.50.

More PayPal News

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: PayPal’s second-quarter results exceeded expectations, with adjusted earnings per share of $1.38 versus the $1.28 consensus and revenue of $8.68 billion versus $8.47 billion expected. Management also raised its full-year outlook, citing improving branded checkout, Venmo expansion and cost savings. PayPal Shares Pause as Raised Guidance Validates Turnaround Narrative
• Positive Sentiment: Several analysts raised their price targets following the earnings report, including JPMorgan, TD Cowen, Citigroup and Keefe, Bruyette & Woods. The targets—ranging from the mid-$50s to $70—suggest some analysts see additional upside if PayPal sustains its operational improvements. JPMorgan Analyst Says PayPal Stock Could Rise
• Positive Sentiment: Value-focused commentary highlights PYPL’s relatively low earnings multiple, arguing that the valuation could provide support if the company converts its stronger guidance into consistent growth. PayPal: A Steal At Less Than 10x Earnings
• Neutral Sentiment: Analyst opinion remains mixed. Canaccord Genuity maintained a hold rating, while Wells Fargo increased its target to $56 but kept an equal-weight rating. The broader brokerage consensus remains “hold,” reflecting improved results but limited confidence in PayPal’s longer-term growth trajectory. Canaccord Gives PayPal a Hold Rating
• Neutral Sentiment: Speculation about takeover interest, including a reported bid involving Stripe and Advent International, could support valuation, but no transaction is confirmed and investors remain focused on PayPal’s standalone turnaround. Is Takeout Target PayPal a Buy?
• Negative Sentiment: Bearish analysis says PayPal’s substantial share-repurchase program has not translated into sustained stock-price gains, underscoring skepticism about capital allocation and the company’s growth prospects. PayPal’s $17 Billion Bet Against Wall Street
• Negative Sentiment: Investors continue to monitor margin pressure, branded-checkout execution and PayPal’s slower growth relative to major payments peers. Two insiders also sold shares under pre-arranged Rule 10b5-1 plans; the sales are relatively small but may add modest near-term caution. PayPal Insider Selling

PayPal Stock Down 0.8%

PYPL stock opened at $57.21 on Friday. The company's 50 day simple moving average is $47.03 and its 200-day simple moving average is $47.09. The firm has a market capitalization of $48.94 billion, a PE ratio of 10.81, a P/E/G ratio of 1.42 and a beta of 1.33. PayPal Holdings, Inc. has a 12 month low of $38.46 and a 12 month high of $79.21. The company has a debt-to-equity ratio of 0.55, a current ratio of 1.29 and a quick ratio of 1.26.

PayPal (NASDAQ:PYPL - Get Free Report) last issued its quarterly earnings data on Tuesday, July 28th. The credit services provider reported $1.38 earnings per share for the quarter, topping analysts' consensus estimates of $1.28 by $0.10. PayPal had a net margin of 14.36% and a return on equity of 24.39%. The business had revenue of $8.68 billion during the quarter, compared to analysts' expectations of $8.47 billion. During the same period last year, the company posted $1.40 EPS. The company's revenue was up 4.8% on a year-over-year basis. Equities analysts expect that PayPal Holdings, Inc. will post 5.35 earnings per share for the current fiscal year.

PayPal Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, September 25th. Shareholders of record on Friday, September 4th will be given a dividend of $0.14 per share. The ex-dividend date of this dividend is Friday, September 4th. This represents a $0.56 annualized dividend and a yield of 1.0%. PayPal's dividend payout ratio (DPR) is presently 10.59%.

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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