Empowered Funds LLC Has $5.23 Million Stake in PayPal Holdings, Inc. $PYPL

Key Points

• Empowered Funds LLC cut its PayPal stake by 72.1% in the first quarter, selling 298,660 shares and retaining 115,556 shares valued at $5.23 million. Institutional investors and hedge funds collectively own 68.32% of PYPL.
• PayPal exceeded second-quarter expectations, reporting adjusted EPS of $1.38 and revenue of $8.68 billion, while raising its full-year outlook on improving branded checkout, Venmo growth and cost savings.
• Despite improved results and several higher analyst price targets, the overall consensus remains “Hold”, with an average target of $55.50. Investors continue to watch margin pressure, slower growth and execution of the company’s turnaround.

Empowered Funds LLC trimmed its stake in PayPal Holdings, Inc. (NASDAQ:PYPL - Free Report) by 72.1% during the first quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 115,556 shares of the credit services provider's stock after selling 298,660 shares during the period. Empowered Funds LLC's holdings in PayPal were worth $5,227,000 as of its most recent SEC filing.

Several other hedge funds have also recently bought and sold shares of PYPL. Norges Bank acquired a new stake in shares of PayPal in the 4th quarter valued at $949,758,000. Vanguard Group Inc. increased its position in shares of PayPal by 6.5% during the 4th quarter. Vanguard Group Inc. now owns 90,376,927 shares of the credit services provider's stock worth $5,276,205,000 after purchasing an additional 5,534,462 shares in the last quarter. SG Americas Securities LLC increased its position in shares of PayPal by 355.1% during the 1st quarter. SG Americas Securities LLC now owns 4,967,170 shares of the credit services provider's stock worth $224,665,000 after purchasing an additional 3,875,688 shares in the last quarter. AQR Capital Management LLC lifted its holdings in PayPal by 143.4% during the 4th quarter. AQR Capital Management LLC now owns 5,089,586 shares of the credit services provider's stock valued at $297,130,000 after purchasing an additional 2,998,286 shares during the last quarter. Finally, First Trust Advisors LP lifted its holdings in PayPal by 65.9% during the 1st quarter. First Trust Advisors LP now owns 5,123,978 shares of the credit services provider's stock valued at $231,757,000 after purchasing an additional 2,035,268 shares during the last quarter. 68.32% of the stock is currently owned by institutional investors and hedge funds.

PayPal News Summary

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

Analysts Set New Price Targets

Several brokerages have weighed in on PYPL. Zacks Research raised shares of PayPal from a "strong sell" rating to a "hold" rating in a research note on Friday, April 17th. Morgan Stanley set a $45.00 target price on shares of PayPal in a research note on Wednesday. Citigroup boosted their target price on PayPal from $48.00 to $61.00 and gave the stock a "neutral" rating in a report on Wednesday. BTIG Research restated a "neutral" rating on shares of PayPal in a research report on Wednesday, July 15th. Finally, UBS Group set a $45.00 price target on PayPal in a report on Wednesday. Nine investment 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 company's stock. According to data from MarketBeat.com, the company presently has an average rating of "Hold" and an average price target of $55.50.

Insider Buying and Selling

In other PayPal news, insider Suzan Kereere sold 3,379 shares of the company's stock in a transaction on Wednesday, June 3rd. The stock was sold at an average price of $42.79, for a total transaction of $144,587.41. Following the transaction, the insider owned 30,983 shares of the company's stock, valued at approximately $1,325,762.57. This represents a 9.83% decrease in their position. The transaction was disclosed in a 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, CAO Chris Natali sold 1,337 shares of the company's stock in a transaction on Wednesday, July 29th. The stock was sold at an average price of $58.10, for a total value of $77,679.70. Following the transaction, the chief accounting officer directly owned 2,216 shares in the company, valued at approximately $128,749.60. This represents a 37.63% 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 10,612 shares of company stock worth $484,534 in the last quarter. Insiders own 0.63% of the company's stock.

PayPal Trading Down 0.8%

PYPL opened at $57.21 on Friday. The company has a current ratio of 1.29, a quick ratio of 1.26 and a debt-to-equity ratio of 0.55. The stock has a market capitalization of $48.94 billion, a PE ratio of 10.81, a PEG ratio of 1.42 and a beta of 1.33. PayPal Holdings, Inc. has a 1-year low of $38.46 and a 1-year high of $79.21. The firm has a 50-day moving average price of $47.03 and a two-hundred day moving average price of $47.09.

PayPal (NASDAQ:PYPL - Get Free Report) last announced its earnings results 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 company had revenue of $8.68 billion during the quarter, compared to the consensus estimate of $8.47 billion. During the same period in the previous year, the firm posted $1.40 earnings per share. The company's revenue was up 4.8% on a year-over-year basis. As a group, equities analysts anticipate that PayPal Holdings, Inc. will post 5.35 earnings per share for the current fiscal year.

PayPal Announces Dividend

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

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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