Gotham Asset Management LLC Raises Stake in PayPal Holdings, Inc. $PYPL

Key Points

• Gotham Asset Management increased its PayPal stake by 24% in Q3 to 442,008 shares (an additional 85,580 shares) worth about $29.64 million, according to its latest 13F filing.
• Insiders have been selling recently: EVP Frank Keller sold 29,581 shares and insiders sold 87,608 shares (~$3.83M) over the past 90 days, leaving corporate insiders with just 0.08% ownership.
• Legal and operational risks are rising — multiple securities class action filings, an abrupt CEO departure, and a recent earnings miss (EPS $1.23 vs. $1.29; revenue $8.68B vs. $8.82B) plus cautious guidance have weighed on the stock.

Gotham Asset Management LLC increased its position in PayPal Holdings, Inc. (NASDAQ:PYPL - Free Report) by 24.0% in the third quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 442,008 shares of the credit services provider's stock after buying an additional 85,580 shares during the period. Gotham Asset Management LLC's holdings in PayPal were worth $29,641,000 as of its most recent SEC filing.

Other institutional investors and hedge funds have also modified their holdings of the company. Cloud Capital Management LLC acquired a new position in PayPal in the 3rd quarter valued at $30,000. Kelleher Financial Advisors acquired a new stake in shares of PayPal during the third quarter worth $30,000. True Wealth Design LLC grew its position in shares of PayPal by 285.3% in the third quarter. True Wealth Design LLC now owns 524 shares of the credit services provider's stock valued at $35,000 after purchasing an additional 388 shares during the period. VSM Wealth Advisory LLC purchased a new stake in shares of PayPal in the second quarter valued at $36,000. Finally, Dagco Inc. increased its stake in PayPal by 1,250.0% in the third quarter. Dagco Inc. now owns 540 shares of the credit services provider's stock valued at $36,000 after purchasing an additional 500 shares during the last quarter. Hedge funds and other institutional investors own 68.32% of the company's stock.

Insider Transactions at PayPal

In other news, EVP Frank Keller sold 29,581 shares of the firm's stock in a transaction on Tuesday, March 3rd. The shares were sold at an average price of $46.02, for a total value of $1,361,317.62. Following the transaction, the executive vice president owned 51,567 shares of the company's stock, valued at approximately $2,373,113.34. This trade represents a 36.45% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, CAO Chris Natali sold 2,208 shares of PayPal stock in a transaction on Tuesday, March 3rd. The shares were sold at an average price of $44.73, for a total transaction of $98,763.84. Following the transaction, the chief accounting officer owned 1,140 shares in the company, valued at $50,992.20. The trade was a 65.95% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 87,608 shares of company stock valued at $3,831,535 over the last 90 days. Corporate insiders own 0.08% of the company's stock.

Key PayPal News

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: Contrarian and bullish write-ups argue PYPL is deeply discounted and could see significant upside if growth stabilizes and execution improves; these narratives can attract value investors. Forget the Lawsuit: Here’s How PayPal Could Double From Here
• Positive Sentiment: Some analysts and commentary (e.g., Seeking Alpha) argue the stock is not yet “broken” and that meaningful upside is possible if execution and key metrics improve — this supports short-term rallies. PayPal: Not Broken Enough To Sell
• Neutral Sentiment: MarketBeat and others note the rally that followed takeover rumors faded once those rumors abated; they highlight the upcoming earnings and execution as the real catalysts — meaning near-term moves may hinge on early-May results. Why PayPal’s Rally Faded—And What Could Restart It
• Neutral Sentiment: Comparisons with peers (e.g., Zacks on PYPL vs. MA) and investor letters (Artisan) provide mixed viewpoints — PayPal’s AI/commerce and Venmo positives are noted, but guidance fears and competitive pressure temper conviction. PayPal vs MasterCard: Which Fintech Stock Offers Greater Upside Now?
• Negative Sentiment: Multiple law firms have filed or are soliciting lead-plaintiff status in a securities class action covering Feb. 25, 2025–Feb. 2, 2026 (deadline April 20, 2026). The wave of filings and reminders (Rosen, Faruqi, Hagens Berman, Bronstein, Portnoy, Robbins Geller, etc.) raises legal and headline risk and could pressure the shares. ROSEN Encourages PayPal Investors to Secure Counsel Hagens Berman: Securities Class Action
• Negative Sentiment: Underlying fundamentals remain a concern: PayPal’s Feb. earnings missed estimates and management gave cautious guidance; combined with the abrupt CEO departure referenced in filings, investor confidence and near-term growth visibility are impaired. Why PayPal’s Rally Faded—And What Could Restart It
• Negative Sentiment: Income/ETF stories note PayPal’s collapsing share price has distorted yield products (e.g., PYPY’s high headline yield), underscoring capital-loss risk for income investors and adding negative narrative pressure. PayPal’s Collapsing Stock Price Directly Affects PYPY’s Absurd 75% Dividend Yield

PayPal Stock Performance

PayPal stock opened at $45.42 on Tuesday. The company has a market cap of $41.82 billion, a price-to-earnings ratio of 8.40, a price-to-earnings-growth ratio of 1.34 and a beta of 1.43. PayPal Holdings, Inc. has a 12 month low of $38.46 and a 12 month high of $79.50. The company has a debt-to-equity ratio of 0.49, a current ratio of 1.29 and a quick ratio of 1.29. The stock's 50-day moving average is $48.64 and its 200-day moving average is $59.50.

PayPal (NASDAQ:PYPL - Get Free Report) last issued its earnings results on Tuesday, February 3rd. The credit services provider reported $1.23 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.29 by ($0.06). The firm had revenue of $8.68 billion for the quarter, compared to analysts' expectations of $8.82 billion. PayPal had a return on equity of 25.42% and a net margin of 15.77%.The firm's revenue for the quarter was up 4.0% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $1.19 EPS. Equities analysts anticipate that PayPal Holdings, Inc. will post 5.03 earnings per share for the current year.

PayPal Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, March 25th. Shareholders of record on Wednesday, March 4th will be paid a dividend of $0.14 per share. This represents a $0.56 annualized dividend and a yield of 1.2%. The ex-dividend date is Wednesday, March 4th. PayPal's payout ratio is currently 10.35%.

Wall Street Analyst Weigh In

Several research firms recently weighed in on PYPL. Weiss Ratings reiterated a "hold (c)" rating on shares of PayPal in a research report on Thursday, January 22nd. Wall Street Zen downgraded shares of PayPal from a "buy" rating to a "hold" rating in a research note on Sunday, January 18th. Compass Point upgraded shares of PayPal from a "sell" rating to a "neutral" rating and set a $51.00 price objective on the stock in a report on Wednesday, February 4th. Argus decreased their target price on shares of PayPal from $87.00 to $65.00 and set a "buy" rating on the stock in a research report on Friday, February 6th. Finally, Monness Crespi & Hardt downgraded shares of PayPal from a "buy" rating to a "neutral" rating in a report on Monday, January 5th. Eight equities research analysts have rated the stock with a Buy rating, thirty-one have issued a Hold rating and six have assigned a Sell rating to the company. Based on data from MarketBeat, the stock has a consensus rating of "Hold" and a consensus price target of $59.03.

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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