Hara Capital LLC Takes $3.57 Million Position in PayPal Holdings, Inc. $PYPL

Key Points

• Hara Capital acquired a new $3.57 million PayPal stake, purchasing 82,713 shares in the second quarter; PayPal now represents about 1.9% of its portfolio. Institutional investors collectively own 68.32% of the company.
• PayPal reported quarterly adjusted earnings of $1.38 per share and revenue of $8.68 billion, exceeding analyst estimates, while revenue rose 4.8% year over year. The company also announced a quarterly dividend of $0.14 per share, yielding approximately 0.9%.
• Analyst sentiment remains mixed, with PayPal carrying an overall “Hold” rating and an average price target of $56.28; takeover speculation and new payment integrations provide potential catalysts, while competition and valuation remain risks.

Hara Capital LLC purchased a new stake in PayPal Holdings, Inc. (NASDAQ:PYPL - Free Report) during the 2nd quarter, according to its most recent Form 13F filing with the SEC. The institutional investor purchased 82,713 shares of the credit services provider's stock, valued at approximately $3,572,000. PayPal accounts for about 1.9% of Hara Capital LLC's portfolio, making the stock its 13th biggest position.

Other hedge funds and other institutional investors also recently modified their holdings of the company. Vanguard Group Inc. raised its stake in PayPal by 6.5% in 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. BlackRock Inc. acquired a new position in PayPal during the second quarter valued at approximately $3,236,989,000. Bank of America Corp DE raised its holdings in shares of PayPal by 67.9% during the 1st quarter. Bank of America Corp DE now owns 25,614,720 shares of the credit services provider's stock worth $1,158,554,000 after buying an additional 10,356,256 shares in the last quarter. Norges Bank acquired a new position in PayPal during the fourth quarter worth about $949,758,000. Finally, Amundi lifted its stake in PayPal by 227.6% in the 1st quarter. Amundi now owns 13,804,208 shares of the credit services provider's stock valued at $624,364,000 after purchasing an additional 9,590,488 shares during the last quarter. Institutional investors and hedge funds own 68.32% of the company's stock.

PayPal Stock Performance

NASDAQ:PYPL opened at $62.30 on Friday. The company has a quick ratio of 1.29, a current ratio of 1.29 and a debt-to-equity ratio of 0.55. PayPal Holdings, Inc. has a twelve month low of $38.46 and a twelve month high of $79.21. The company has a fifty day moving average of $51.73 and a 200-day moving average of $47.42. The firm has a market capitalization of $53.30 billion, a P/E ratio of 11.78, a P/E/G ratio of 1.49 and a beta of 1.30.

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 business had revenue of $8.68 billion for the quarter, compared to analyst estimates of $8.47 billion. PayPal had a net margin of 14.36% and a return on equity of 24.39%. PayPal's revenue was up 4.8% on a year-over-year basis. During the same period in the prior year, the firm earned $1.40 earnings per share. As a group, sell-side analysts anticipate that PayPal Holdings, Inc. will post 5.38 EPS for the current year.

PayPal Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, September 25th. Stockholders of record on Friday, September 4th will be given a dividend of $0.14 per share. This represents a $0.56 dividend on an annualized basis and a dividend yield of 0.9%. The ex-dividend date of this dividend is Friday, September 4th. PayPal's dividend payout ratio is 10.59%.

Insider Transactions at PayPal

In other news, CAO Chris Natali sold 1,337 shares of the firm's stock in a transaction dated Wednesday, July 29th. The stock was sold at an average price of $58.10, for a total value of $77,679.70. Following the completion of the sale, the chief accounting officer directly owned 2,216 shares in the company, valued at $128,749.60. This trade represents a 37.63% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Suzan Kereere sold 4,162 shares of the business's stock in a transaction dated Tuesday, August 18th. The shares were sold at an average price of $60.96, for a total value of $253,715.52. Following the completion of the sale, the insider directly owned 30,983 shares of the company's stock, valued at $1,888,723.68. The trade was a 11.84% decrease in their ownership of the stock. 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 14,774 shares of company stock valued at $738,249 in the last 90 days. 0.63% of the stock is currently owned by corporate insiders.

Key Stories Impacting PayPal

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: Takeover speculation supported the stock. Deal chatter involving a possible Stripe and Advent International offer resurfaced, encouraging investors to view PayPal as a potential acquisition target. No offer or transaction has been confirmed, so the catalyst remains speculative. PayPal takeover speculation
• Positive Sentiment: Tuition-payment integrations expand PayPal’s potential transaction volume. PayPal and Venmo are now available through Illumia, Nelnet Campus Commerce and TouchNet, with participating schools including Bellarmine University, Butler University, Kansas State University, Michigan State University and Texas Tech. The initiative adds a recurring, high-value payment use case, though its near-term revenue contribution is unclear. PayPal and Venmo tuition-payment expansion
• Positive Sentiment: PayPal outperformed some buy-now-pay-later peers. Klarna and Affirm declined as PayPal remained positive, suggesting investors may be favoring the scale, established customer base and broader financial-services platform of more mature payment companies. PayPal and BNPL stock rotation
• Neutral Sentiment: Options pricing reflects substantial uncertainty. The options market implies a broad potential trading range over the coming year, consistent with uncertainty surrounding PayPal’s turnaround prospects and possible corporate activity. PayPal options outlook
• Neutral Sentiment: An insider sale was a modest cautionary signal. Suzan Kereere sold 4,162 shares worth approximately $253,716 under a pre-arranged Rule 10b5-1 plan. She retained 30,983 shares, reducing the significance of the transaction as an indicator of business prospects. PayPal insider sale filing
• Negative Sentiment: Competitive and valuation risks remain. TikTok is reportedly developing a peer-to-peer payment feature that could challenge Venmo’s social-payments positioning. Jim Cramer also warned that some fintech stocks, including PayPal, may be priced for optimistic outcomes. TikTok peer-to-peer payment report

Wall Street Analyst Weigh In

Several research firms have commented on PYPL. Keefe, Bruyette & Woods increased their target price on PayPal from $55.00 to $70.00 and gave the company an "outperform" rating in a research report on Wednesday, July 29th. Telsey Advisory Group cut PayPal to a "market perform" rating in a research note on Friday, July 24th. Susquehanna raised their price objective on PayPal from $63.00 to $67.00 and gave the stock a "positive" rating in a research report on Wednesday, July 29th. William Blair reaffirmed a "market perform" rating on shares of PayPal in a research note on Wednesday, July 15th. Finally, Barclays upped their target price on PayPal from $55.00 to $57.00 and gave the company an "equal weight" rating in a report on Wednesday, July 29th. Nine equities research 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 data from MarketBeat.com, the company presently has an average rating of "Hold" and an average price target of $56.28.

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.

Want to see what other hedge funds are holding PYPL? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for PayPal Holdings, Inc. (NASDAQ:PYPL - Free Report).

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