Headlands Technologies LLC Makes New Investment in PayPal Holdings, Inc. (NASDAQ:PYPL)

Key Points

• Headlands Technologies LLC acquired 128,956 shares of PayPal Holdings, Inc., valued at around $8.4 million, representing 1.0% of its portfolio and making it the 19th largest holding.
• Several analysts have a consensus rating of "Moderate Buy" for PayPal with a price target averaging $84.57, while some forecasts suggest continued growth for the company.
• Recent insider sales have been reported, including transactions from Suzan Kereere and Diego Scotti, indicating a decrease in their stock holdings in PayPal.

Headlands Technologies LLC bought a new stake in PayPal Holdings, Inc. (NASDAQ:PYPL - Free Report) during the first quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund bought 128,956 shares of the credit services provider's stock, valued at approximately $8,414,000. PayPal accounts for 1.0% of Headlands Technologies LLC's investment portfolio, making the stock its 19th biggest position.

Other hedge funds have also modified their holdings of the company. Brighton Jones LLC lifted its position in shares of PayPal by 15.2% during the fourth quarter. Brighton Jones LLC now owns 6,989 shares of the credit services provider's stock worth $596,000 after purchasing an additional 924 shares in the last quarter. Revolve Wealth Partners LLC acquired a new position in shares of PayPal in the fourth quarter worth $248,000. Cerity Partners LLC increased its position in shares of PayPal by 2.2% during the fourth quarter. Cerity Partners LLC now owns 295,990 shares of the credit services provider's stock worth $24,711,000 after acquiring an additional 6,255 shares during the period. Bernard Wealth Management Corp. acquired a new stake in shares of PayPal in the fourth quarter valued at $37,000. Finally, Advisory Services Network LLC boosted its holdings in PayPal by 2.7% in the fourth quarter. Advisory Services Network LLC now owns 96,426 shares of the credit services provider's stock valued at $8,230,000 after purchasing an additional 2,550 shares during the period. 68.32% of the stock is currently owned by hedge funds and other institutional investors.

PayPal Price Performance

NASDAQ:PYPL traded down $0.57 during trading hours on Friday, hitting $67.65. The company's stock had a trading volume of 9,663,964 shares, compared to its average volume of 13,469,648. PayPal Holdings, Inc. has a 52-week low of $55.85 and a 52-week high of $93.66. The company has a debt-to-equity ratio of 0.56, a quick ratio of 1.33 and a current ratio of 1.33. The business's 50-day moving average is $72.94 and its two-hundred day moving average is $71.80. The company has a market capitalization of $64.63 billion, a PE ratio of 14.46, a PEG ratio of 1.05 and a beta of 1.42.

PayPal (NASDAQ:PYPL - Get Free Report) last posted its quarterly earnings results on Tuesday, July 29th. The credit services provider reported $1.40 earnings per share for the quarter, topping analysts' consensus estimates of $1.30 by $0.10. PayPal had a net margin of 14.49% and a return on equity of 25.35%. The business had revenue of $8.29 billion for the quarter, compared to analysts' expectations of $8.08 billion. During the same period in the prior year, the company posted $1.19 EPS. As a group, research analysts anticipate that PayPal Holdings, Inc. will post 5.03 EPS for the current fiscal year.

Insider Activity at PayPal

In related news, Director Deborah M. Messemer sold 3,795 shares of the company's stock in a transaction that occurred on Friday, June 6th. The stock was sold at an average price of $73.00, for a total value of $277,035.00. Following the sale, the director owned 13,976 shares in the company, valued at $1,020,248. This represents a 21.36% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, insider Suzan Kereere sold 4,162 shares of PayPal stock in a transaction on Friday, June 6th. The stock was sold at an average price of $73.24, for a total value of $304,824.88. Following the transaction, the insider directly owned 48,483 shares of the company's stock, valued at approximately $3,550,894.92. This represents a 7.91% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 22,736 shares of company stock valued at $1,620,835 in the last 90 days. Insiders own 0.08% of the company's stock.

Analysts Set New Price Targets

Several equities research analysts have weighed in on the company. Morgan Stanley restated a "positive" rating on shares of PayPal in a report on Wednesday, July 30th. Royal Bank Of Canada restated an "outperform" rating and issued a $88.00 price target on shares of PayPal in a research note on Thursday, June 26th. BMO Capital Markets reaffirmed a "market perform" rating on shares of PayPal in a report on Tuesday, July 29th. Compass Point assumed coverage on PayPal in a research report on Wednesday, April 23rd. They set a "sell" rating and a $56.00 target price on the stock. Finally, Barclays reaffirmed an "overweight" rating on shares of PayPal in a report on Tuesday, July 29th. Two equities research analysts have rated the stock with a sell rating, fourteen have issued a hold rating, nineteen have issued a buy rating and one has issued a strong buy rating to the company. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $84.57.

About PayPal

PayPal Holdings, Inc operates a technology platform that enables digital payments on behalf of merchants and consumers worldwide. It operates a two-sided network at scale that connects merchants and consumers that enables its customers to connect, transact, and send and receive payments through online and in person, as well as transfer and withdraw funds using various funding sources, such as bank accounts, PayPal or Venmo account balance, PayPal and Venmo branded credit products comprising its installment products, credit and debit cards, and cryptocurrencies, as well as other stored value products, including gift cards and eligible rewards.