Healthcare of Ontario Pension Plan Trust Fund Sells 99,716 Shares of PayPal Holdings, Inc. $PYPL

Key Points

• Healthcare of Ontario Pension Plan Trust Fund cut its PayPal stake by 5.1% in the first quarter, selling 99,716 shares and ending with 1,844,806 shares valued at about $83.4 million.
• Sentiment around PayPal improved after Truist Securities upgraded the stock from Sell to Hold and raised its price target to $57, while reports also surfaced that Stripe and Advent International made a $53 billion takeover approach.
• PayPal’s latest results showed solid operating performance, with earnings of $1.34 per share and revenue of $8.35 billion beating estimates, while the company also pays a quarterly dividend of $0.14 per share.

Healthcare of Ontario Pension Plan Trust Fund decreased its stake in shares of PayPal Holdings, Inc. (NASDAQ:PYPL - Free Report) by 5.1% during the 1st quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 1,844,806 shares of the credit services provider's stock after selling 99,716 shares during the period. Healthcare of Ontario Pension Plan Trust Fund owned 0.21% of PayPal worth $83,441,000 at the end of the most recent quarter.

A number of other institutional investors also recently modified their holdings of PYPL. Renaissance Technologies LLC acquired a new position in shares of PayPal during the first quarter worth approximately $8,738,000. Morningstar Investment Management LLC lifted its holdings in PayPal by 79.5% during the 1st quarter. Morningstar Investment Management LLC now owns 72,011 shares of the credit services provider's stock worth $3,257,000 after buying an additional 31,896 shares in the last quarter. Public Employees Retirement System of Ohio boosted its position in PayPal by 5.5% in the 1st quarter. Public Employees Retirement System of Ohio now owns 406,803 shares of the credit services provider's stock valued at $18,400,000 after buying an additional 21,186 shares during the last quarter. Compound Planning Inc. boosted its position in PayPal by 32.1% in the 1st quarter. Compound Planning Inc. now owns 13,478 shares of the credit services provider's stock valued at $610,000 after buying an additional 3,274 shares during the last quarter. Finally, Modern Wealth Management LLC increased its stake in shares of PayPal by 8.4% in the 1st quarter. Modern Wealth Management LLC now owns 6,654 shares of the credit services provider's stock valued at $297,000 after buying an additional 517 shares during the period. 68.32% of the stock is owned by institutional investors.

Key Stories Impacting PayPal

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: Truist Securities upgraded PayPal from Sell to Hold and raised its price target to $57 from $44, signaling improved confidence in the stock and helping sentiment around PYPL. Article: Benzinga report on Truist upgrade
• Positive Sentiment: Reports that Stripe and Advent International have approached PayPal with a $53 billion takeover bid have fueled speculation that PYPL could be worth more in a deal, boosting investor interest. Article: Yahoo Finance takeover report
• Neutral Sentiment: Options traders are pricing in about an 8.8% swing around next week’s earnings, indicating elevated expectations and potential volatility rather than a clear directional view. Article: TipRanks earnings volatility report
• Neutral Sentiment: Analysts say investors are focused on TPV growth, platform expansion, margins, and competition heading into earnings, with macro uncertainty still clouding the outlook. Article: Zacks preview
• Neutral Sentiment: PayPal remains a low-valuation name by market standards, with investors noting its roughly 11x earnings multiple and ongoing share repurchases as support for long-term value. Article: 24/7 Wall St. valuation note

PayPal Stock Performance

Shares of PYPL opened at $56.15 on Friday. The company has a debt-to-equity ratio of 0.47, a quick ratio of 1.26 and a current ratio of 1.26. PayPal Holdings, Inc. has a twelve month low of $38.46 and a twelve month high of $79.50. The firm's 50 day moving average price is $45.70 and its two-hundred day moving average price is $47.14. The firm has a market cap of $49.53 billion, a P/E ratio of 10.53, a PEG ratio of 1.40 and a beta of 1.33.

PayPal (NASDAQ:PYPL - Get Free Report) last posted its quarterly earnings data on Tuesday, May 5th. The credit services provider reported $1.34 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.27 by $0.07. The company had revenue of $8.35 billion for the quarter, compared to the consensus estimate of $8.05 billion. PayPal had a net margin of 15.00% and a return on equity of 25.02%. The firm's revenue was up 7.2% compared to the same quarter last year. During the same period last year, the company earned $1.33 earnings per share. On average, analysts forecast that PayPal Holdings, Inc. will post 5.32 EPS for the current fiscal year.

PayPal Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, June 25th. Shareholders of record on Thursday, June 4th were given a dividend of $0.14 per share. The ex-dividend date of this dividend was Thursday, June 4th. This represents a $0.56 annualized dividend and a dividend yield of 1.0%. PayPal's payout ratio is 10.51%.

Insider Activity

In other PayPal news, insider Frank Keller sold 4,612 shares of the company's stock in a transaction on Wednesday, June 3rd. The shares were sold at an average price of $42.54, for a total value of $196,194.48. Following the transaction, the insider directly owned 41,567 shares in the company, valued at $1,768,260.18. The trade was a 9.99% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Chris Natali sold 1,337 shares of PayPal stock in a transaction dated Wednesday, April 29th. The stock was sold at an average price of $49.46, for a total transaction of $66,128.02. Following the completion of the sale, the chief accounting officer owned 1,586 shares of the company's stock, valued at $78,443.56. This trade represents a 45.74% 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 a total of 20,612 shares of company stock valued at $966,623 over the last three months. Insiders own 0.63% of the company's stock.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently weighed in on PYPL shares. Deutsche Bank Aktiengesellschaft dropped their target price on PayPal from $50.00 to $45.00 in a research report on Monday, May 11th. Needham & Company LLC reissued a "hold" rating on shares of PayPal in a research note on Tuesday, May 5th. Mizuho reaffirmed a "neutral" rating and set a $50.00 target price (down from $60.00) on shares of PayPal in a report on Thursday, April 16th. Truist Financial upgraded shares of PayPal from a "sell" rating to a "hold" rating and upped their target price for the company from $44.00 to $57.00 in a research report on Friday. Finally, The Goldman Sachs Group increased their price target on PayPal from $41.00 to $48.00 and gave the company a "sell" rating in a research note on Thursday, July 9th. Nine equities research analysts have rated the stock with a Buy rating, thirty-four have given a Hold rating and four have given a Sell rating to the company's stock. According to MarketBeat.com, PayPal currently has an average rating of "Hold" and a consensus price target of $54.96.

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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