HighTower Advisors LLC Sells 39,705 Shares of PayPal Holdings, Inc. $PYPL

Key Points

• HighTower Advisors reduced its PayPal stake by 22.1%, selling 39,705 shares during the second quarter and retaining 140,355 shares valued at approximately $6.06 million.
• PayPal reported quarterly earnings of $1.38 per share and revenue of $8.68 billion, exceeding analyst estimates; revenue increased 4.8% year over year.
• The company announced a quarterly dividend of $0.14 per share, while analysts maintain a consensus “Hold” rating with an average price target of $56.03.

HighTower Advisors LLC decreased its stake in shares of PayPal Holdings, Inc. (NASDAQ:PYPL - Free Report) by 22.1% in the 2nd quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm owned 140,355 shares of the credit services provider's stock after selling 39,705 shares during the quarter. HighTower Advisors LLC's holdings in PayPal were worth $6,061,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other large investors have also bought and sold shares of the stock. Brighton Jones LLC increased its position in PayPal by 15.2% in the 4th quarter. Brighton Jones LLC now owns 6,989 shares of the credit services provider's stock valued at $596,000 after buying an additional 924 shares in the last quarter. Revolve Wealth Partners LLC bought a new position in PayPal in the fourth quarter worth approximately $248,000. Sivia Capital Partners LLC boosted its holdings in PayPal by 41.5% in the second quarter. Sivia Capital Partners LLC now owns 4,470 shares of the credit services provider's stock worth $332,000 after acquiring an additional 1,310 shares in the last quarter. United Bank grew its stake in PayPal by 40.1% in the second quarter. United Bank now owns 17,388 shares of the credit services provider's stock valued at $1,292,000 after acquiring an additional 4,974 shares during the period. Finally, Federated Hermes Inc. grew its stake in PayPal by 17.9% in the second quarter. Federated Hermes Inc. now owns 18,909 shares of the credit services provider's stock valued at $1,405,000 after acquiring an additional 2,865 shares during the period. 68.32% of the stock is currently owned by institutional investors and hedge funds.

PayPal Trading Up 2.2%

NASDAQ:PYPL opened at $53.31 on Friday. PayPal Holdings, Inc. has a 52 week low of $38.46 and a 52 week high of $79.21. The firm has a 50-day moving average price of $55.78 and a two-hundred day moving average price of $48.99. The company has a debt-to-equity ratio of 0.55, a quick ratio of 1.29 and a current ratio of 1.29. The firm has a market cap of $45.60 billion, a price-to-earnings ratio of 10.08, a price-to-earnings-growth ratio of 1.11 and a beta of 1.28.

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. The firm had revenue of $8.68 billion for the quarter, compared to the consensus estimate of $8.47 billion. PayPal had a return on equity of 24.39% and a net margin of 14.36%.The company's revenue was up 4.8% compared to the same quarter last year. During the same quarter in the previous year, the business earned $1.40 EPS. On average, equities analysts expect that PayPal Holdings, Inc. will post 5.38 earnings per share for the current fiscal year.

PayPal Announces Dividend

The firm also recently announced 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. The ex-dividend date of this dividend is Friday, September 4th. This represents a $0.56 annualized dividend and a dividend yield of 1.1%. PayPal's dividend payout ratio (DPR) is currently 10.59%.

Analyst Ratings Changes

PYPL has been the topic of a number of research reports. BNP Paribas Exane upped their target price on PayPal from $43.50 to $52.00 and gave the stock a "neutral" rating in a research report on Tuesday, July 21st. UBS Group set a $45.00 price target on shares of PayPal in a research report on Wednesday, July 29th. Weiss Ratings raised shares of PayPal from a "hold (c-)" rating to a "hold (c)" rating in a research report on Monday, August 24th. Cantor Fitzgerald boosted their price target on shares of PayPal from $54.00 to $60.00 and gave the company a "neutral" rating in a research note on Monday, August 3rd. Finally, JPMorgan Chase & Co. upped their price objective on shares of PayPal from $46.00 to $65.00 and gave the stock a "neutral" rating in a report on Wednesday, July 29th. Nine 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. Based on data from MarketBeat.com, PayPal currently has a consensus rating of "Hold" and an average price target of $56.03.

More PayPal News

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: PayPal, M0 and MoonPay launched PYUSDx, a developer platform that allows businesses to create financial products and customized digital-dollar offerings using PayPal’s PYUSD stablecoin. Three projects have already processed more than $100 million, offering a potential new source of payments and stablecoin-related growth. PayPal Debuts Developer Platform Tied to PYUSD Stablecoin
• Positive Sentiment: CEO Enrique Lores defended keeping PayPal as one company rather than splitting it up, while outlining three focused business lines. The plan includes greater emphasis on Venmo and Braintree growth and approximately $1.5 billion in cost savings, which could improve efficiency and margins. PayPal CEO Reveals Business Model Shift
• Positive Sentiment: PayPal’s latest quarterly results exceeded expectations, with $1.38 in earnings per share and $8.68 billion in revenue. Combined with stablecoin expansion and a low P/E ratio, these factors support the view that the shares may have recovery potential.
• Neutral Sentiment: Lores said PayPal is keeping its options open amid buyout speculation, but he pushed back against selling the company cheaply. The comments may revive takeover interest, although no transaction has been announced. PayPal Keeping Options Open Amid Buyout Rumors
• Neutral Sentiment: Chief Accounting Officer Chris Natali sold 552 shares under a pre-arranged Rule 10b5-1 plan. The relatively small, scheduled transaction is a limited signal about management’s current outlook.
• Negative Sentiment: Analysts and commentators continue to warn that PayPal faces formidable competition, slowing growth and execution challenges. The stock remains roughly 30% below its 52-week high, leaving investors focused on whether the turnaround can produce sustained transaction and user growth. Is PayPal Stock a Buy, Sell, or Hold

Insider Transactions at PayPal

In related news, insider Frank Keller sold 4,612 shares of the business's stock in a transaction dated Thursday, September 3rd. The shares were sold at an average price of $55.43, for a total value of $255,643.16. Following the transaction, the insider directly owned 41,567 shares of the company's stock, valued at approximately $2,304,058.81. The trade was a 9.99% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Suzan Kereere sold 3,379 shares of the stock in a transaction dated Thursday, September 3rd. The shares were sold at an average price of $55.72, for a total transaction of $188,277.88. Following the transaction, the insider owned 30,983 shares of the company's stock, valued at approximately $1,726,372.76. The trade was a 9.83% 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 have sold 14,774 shares of company stock worth $848,095 in the last ninety days. Company insiders own 0.63% of the company's stock.

About PayPal

PayPal Holdings, Inc is a digital payments and financial technology company that operates a global platform for consumers and businesses. Its services enable customers to send and receive money, make purchases online and in stores, and accept payments through digital checkout solutions. PayPal supports transactions using linked bank accounts, debit and credit cards, stored balances and other payment methods.

The company's consumer and merchant offerings include the PayPal wallet, PayPal Checkout, PayPal Zettle point-of-sale tools, PayPal Braintree payment processing and PayPal Complete Payments.

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