HS Management Partners LLC Sells 488,550 Shares of PayPal Holdings, Inc. $PYPL

Key Points

• HS Management Partners LLC cut its PayPal stake by 73.9% in the fourth quarter, selling 488,550 shares and leaving it with 172,725 shares valued at about $10.1 million.
• Several other institutional investors also adjusted their positions, while institutions still own 68.32% of PayPal’s stock. Insider selling was notable too, including sales by Suzan Kereere and Chris Natali.
• PayPal recently reported better-than-expected earnings and revenue, and it announced a quarterly dividend of $0.14 per share. However, analysts remain cautious overall, with the stock carrying a consensus Hold rating.

HS Management Partners LLC decreased its position in shares of PayPal Holdings, Inc. (NASDAQ:PYPL - Free Report) by 73.9% in the 4th quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 172,725 shares of the credit services provider's stock after selling 488,550 shares during the quarter. PayPal comprises 2.2% of HS Management Partners LLC's holdings, making the stock its 23rd largest holding. HS Management Partners LLC's holdings in PayPal were worth $10,084,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors have also recently modified their holdings of PYPL. Cloud Capital Management LLC bought a new stake in shares of PayPal during the third quarter valued at approximately $30,000. Kelleher Financial Advisors purchased a new position in shares of PayPal during the third quarter valued at approximately $30,000. Torren Management LLC purchased a new position in shares of PayPal during the fourth quarter valued at approximately $31,000. Strategic Advocates LLC purchased a new position in shares of PayPal during the third quarter valued at approximately $38,000. Finally, Steph & Co. boosted its position in shares of PayPal by 103.1% during the fourth quarter. Steph & Co. now owns 656 shares of the credit services provider's stock valued at $38,000 after buying an additional 333 shares during the last quarter. Institutional investors own 68.32% of the company's stock.

Insiders Place Their Bets

In other PayPal news, insider Suzan Kereere sold 13,515 shares of the business's stock in a transaction on Tuesday, March 3rd. The stock was sold at an average price of $46.02, for a total value of $621,960.30. Following the transaction, the insider owned 30,983 shares of the company's stock, valued at approximately $1,425,837.66. The trade was a 30.37% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CAO Chris Natali sold 2,208 shares of the company's stock in a transaction on Tuesday, March 3rd. The shares were sold at an average price of $44.73, for a total value of $98,763.84. Following the transaction, the chief accounting officer directly owned 1,140 shares in the company, valued at $50,992.20. This represents a 65.95% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 57,373 shares of company stock valued at $2,684,341. Insiders own 0.63% of the company's stock.

PayPal Stock Down 0.2%

PYPL stock opened at $44.23 on Friday. The stock's fifty day simple moving average is $46.40 and its two-hundred day simple moving average is $52.18. The company has a current ratio of 1.26, a quick ratio of 1.26 and a debt-to-equity ratio of 0.47. PayPal Holdings, Inc. has a 1-year low of $38.46 and a 1-year high of $79.50. The stock has a market cap of $39.02 billion, a P/E ratio of 8.30, a P/E/G ratio of 1.11 and a beta of 1.39.

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 for the quarter, topping the consensus estimate of $1.27 by $0.07. PayPal had a return on equity of 25.02% and a net margin of 15.00%.The business had revenue of $8.35 billion for the quarter, compared to analysts' expectations of $8.05 billion. During the same quarter in the previous year, the firm earned $1.33 earnings per share. The business's revenue was up 7.2% on a year-over-year basis. Analysts expect that PayPal Holdings, Inc. will post 5.3 EPS for the current year.

PayPal Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, June 25th. Shareholders of record on Thursday, June 4th will be given a $0.14 dividend. The ex-dividend date of this dividend is Thursday, June 4th. This represents a $0.56 annualized dividend and a yield of 1.3%. PayPal's payout ratio is currently 10.51%.

Key Headlines Impacting PayPal

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: PayPal’s stablecoin PYUSD has expanded to 70 global markets, which could support long-term international growth and broader use of the PayPal ecosystem. PayPal Unleashes Largest Stablecoin Expansion Yet as PYUSD Hits 70 Countries
• Positive Sentiment: Michael Burry’s reported stake in PayPal has drawn investor attention and may be viewed as a vote of confidence in the stock’s valuation. What PayPal Holdings (PYPL)'s Burry Stake, Restructuring and New Financing Moves Mean For Shareholders
• Positive Sentiment: Shareholders approved PayPal’s 2026 equity incentive plan, removing some governance uncertainty and supporting management’s compensation framework. PayPal Shareholders Approve 2026 Equity Incentive Plan
• Neutral Sentiment: PayPal is drawing heightened trading interest, but the coverage does not provide a new operational catalyst by itself. Here is What to Know Beyond Why PayPal Holdings, Inc. (PYPL) is a Trending Stock
• Neutral Sentiment: PayPal’s board overhaul and new stock plan were approved, which helps clarify governance but is not a major near-term growth catalyst. PayPal (PYPL) Overhauls Board of Directors and Greenlights New Stock Plan
• Negative Sentiment: New comparison pieces argue that Visa and American Express have stronger growth and more upside than PayPal, reinforcing concerns that PYPL is lagging top peers in digital payments. Should You Forget PayPal and Buy Visa Instead?
• Negative Sentiment: Another analyst-style comparison says American Express has the edge over PayPal, adding to pressure on PYPL’s relative valuation and growth narrative. American Express vs. PayPal: Which Fintech Stock Has More Upside?

Wall Street Analyst Weigh In

PYPL has been the topic of several analyst reports. Robert W. Baird set a $52.00 target price on PayPal in a research report on Wednesday, February 4th. Deutsche Bank Aktiengesellschaft cut their target price on PayPal from $50.00 to $45.00 in a research report on Monday, May 11th. Bank of America cut their target price on PayPal from $55.00 to $53.00 and set a "neutral" rating on the stock in a research report on Wednesday, May 6th. Weiss Ratings reaffirmed a "hold (c-)" rating on shares of PayPal in a research report on Friday, May 8th. Finally, TD Cowen reaffirmed a "hold" rating on shares of PayPal in a research report on Tuesday, February 3rd. Eight analysts have rated the stock with a Buy rating, thirty-two have issued a Hold rating and five have assigned a Sell rating to the company. According to data from MarketBeat, the stock presently has an average rating of "Hold" and an average price target of $55.85.

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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