Empowered Funds LLC Buys New Position in PayPal Holdings, Inc. $PYPL

Key Points

• Empowered Funds LLC acquired 171,307 PayPal shares worth approximately $7.4 million in the second quarter, while institutional investors collectively own 68.32% of PYPL.
• PayPal exceeded quarterly expectations with adjusted EPS of $1.38 versus $1.28 expected and revenue of $8.68 billion, up 4.8% year over year. The company also declared a quarterly dividend of $0.14 per share, representing a 1.0% yield.
• Wall Street’s consensus rating remains Hold, with an average price target of $56.14; analysts are focused on PayPal’s ability to execute its standalone turnaround following the collapse of takeover discussions.

Empowered Funds LLC purchased a new position in PayPal Holdings, Inc. (NASDAQ:PYPL - Free Report) in the second quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The firm purchased 171,307 shares of the credit services provider's stock, valued at approximately $7,397,000.

Several other large investors have also added to or reduced their stakes in PYPL. Rule One Partners LLC bought a new position in PayPal in the fourth quarter worth $2,043,000. Mitsubishi UFJ Asset Management Co. Ltd. bought a new stake in shares of PayPal during the 2nd quarter valued at $97,372,000. S&CO Inc. purchased a new stake in shares of PayPal in the 2nd quarter worth about $18,827,000. Swiss National Bank grew its position in shares of PayPal by 4.9% in the 1st 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. Finally, Easterly Investment Partners LLC increased its stake in shares of PayPal by 705.2% in the 4th quarter. Easterly Investment Partners LLC now owns 100,651 shares of the credit services provider's stock worth $5,876,000 after acquiring an additional 88,151 shares in the last quarter. Institutional investors own 68.32% of the company's stock.

PayPal Price Performance

NASDAQ:PYPL opened at $53.66 on Monday. The firm has a market cap of $45.90 billion, a P/E ratio of 10.14, a P/E/G ratio of 1.31 and a beta of 1.29. The company has a debt-to-equity ratio of 0.55, a quick ratio of 1.29 and a current ratio of 1.29. PayPal Holdings, Inc. has a fifty-two week low of $38.46 and a fifty-two week high of $79.21. The firm has a 50-day simple moving average of $53.88 and a two-hundred day simple moving average of $48.16.

PayPal (NASDAQ:PYPL - Get Free Report) last issued its earnings results on Tuesday, July 28th. The credit services provider reported $1.38 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.28 by $0.10. The firm had revenue of $8.68 billion for the quarter, compared to the consensus estimate of $8.47 billion. PayPal had a net margin of 14.36% and a return on equity of 24.39%. The business's revenue was up 4.8% on a year-over-year basis. During the same quarter in the prior year, the firm posted $1.40 earnings per share. Analysts predict that PayPal Holdings, Inc. will post 5.38 earnings per share for the current fiscal year.

PayPal Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, September 25th. Stockholders of record on Friday, September 4th will be issued a dividend of $0.14 per share. 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 dividend payout ratio is presently 10.59%.

Insider Transactions at PayPal

In other PayPal news, insider Frank Keller sold 4,612 shares of the 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 transaction, 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 ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Suzan Kereere sold 4,162 shares of the stock in a transaction that occurred on Tuesday, August 18th. The stock was sold at an average price of $60.96, for a total transaction of $253,715.52. Following the completion of the transaction, the insider owned 30,983 shares in the company, valued at $1,888,723.68. This trade represents a 11.84% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 14,774 shares of company stock worth $738,249 in the last ninety days. Insiders own 0.63% of the company's stock.

Key Headlines Impacting PayPal

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: Some market observers argue that PayPal’s board protected potentially greater long-term shareholder value by rejecting the reported $60.50-per-share offer, which valued the company at approximately $53 billion. Options pricing also continues to indicate a bullish bias among some traders. PayPal Drops 12% Overnight on Dead Stripe Deal
• Positive Sentiment: PayPal remains an independent turnaround story, with recent initiatives expanding PayPal and Venmo tuition-payment integrations through campus platforms. Investors will now focus more closely on whether management can improve growth and execution without takeover support. PayPal Tuition Payment Push
• Neutral Sentiment: The failed transaction removes a major change-of-control catalyst and returns attention to PayPal’s standalone fundamentals. The company recently exceeded quarterly earnings and revenue expectations, but revenue growth remained modest and earnings per share declined year over year, leaving execution of its turnaround as the key valuation driver.
• Negative Sentiment: The reported withdrawal eliminates the takeover premium that had supported PYPL during weeks of deal speculation. Reports cited valuation concerns, regulatory hurdles and a breakdown in negotiations; the abrupt reversal has therefore prompted investors to reassess PayPal at its lower standalone valuation. PayPal Shares Fall After Consortium Abandons Takeover Pursuit
• Negative Sentiment: Analysts, including Mizuho, are highlighting risks facing PayPal after the deal collapsed. The heavy trading volume and test of the 50-day moving average indicate heightened uncertainty as investors await evidence that the company can generate sufficient growth independently. Why PayPal Stock Is Down and What Mizuho Thinks Comes Next

Wall Street Analyst Weigh In

A number of research analysts recently issued reports on PYPL shares. JPMorgan Chase & Co. lifted their price target on shares of PayPal from $46.00 to $65.00 and gave the company a "neutral" rating in a research report on Wednesday, July 29th. Citigroup raised their target price on shares of PayPal from $48.00 to $61.00 and gave the company a "neutral" rating in a research note on Wednesday, July 29th. Robert W. Baird lifted their target price on shares of PayPal from $50.00 to $57.00 and gave the company a "neutral" rating in a report on Wednesday, July 29th. Piper Sandler lifted their target price on shares of PayPal from $42.00 to $59.00 and gave the company a "neutral" rating in a report on Monday, August 17th. Finally, Susquehanna boosted their price target on PayPal from $63.00 to $67.00 and gave the stock a "positive" rating in a research report on Wednesday, July 29th. Nine research analysts have rated the stock with a Buy rating, thirty-four have assigned a Hold rating and four have given a Sell rating to the stock. Based on data from MarketBeat, the company has a consensus rating of "Hold" and an average target price of $56.14.

PayPal 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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