iA Global Asset Management Inc. Increases Stock Position in PayPal Holdings, Inc. $PYPL

Key Points

• iA Global Asset Management increased its PayPal stake by 32.5% in the fourth quarter, buying 67,330 shares and lifting its holdings to 274,507 shares valued at about $16.0 million.
• Institutional ownership remains high in PayPal, with hedge funds and other institutional investors holding 68.32% of the stock; several large investors also added to their positions recently.
• PayPal posted stronger-than-expected Q1 results, beating estimates on both earnings and revenue, while analysts currently have a consensus Hold rating and a $55.85 price target.

iA Global Asset Management Inc. increased its position in shares of PayPal Holdings, Inc. (NASDAQ:PYPL - Free Report) by 32.5% during the fourth quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 274,507 shares of the credit services provider's stock after buying an additional 67,330 shares during the period. iA Global Asset Management Inc.'s holdings in PayPal were worth $16,026,000 as of its most recent filing with the SEC.

A number of other hedge funds have also recently added to or reduced their stakes in PYPL. Vanguard Group Inc. boosted its holdings in PayPal by 6.5% during the fourth quarter. Vanguard Group Inc. now owns 90,376,927 shares of the credit services provider's stock worth $5,276,205,000 after buying an additional 5,534,462 shares in the last quarter. Dimensional Fund Advisors LP boosted its holdings in PayPal by 35.9% during the third quarter. Dimensional Fund Advisors LP now owns 8,177,536 shares of the credit services provider's stock worth $548,520,000 after buying an additional 2,160,227 shares in the last quarter. Two Sigma Investments LP purchased a new stake in PayPal during the third quarter worth $97,794,000. Invesco Ltd. boosted its holdings in PayPal by 10.9% during the third quarter. Invesco Ltd. now owns 11,131,949 shares of the credit services provider's stock worth $746,508,000 after buying an additional 1,093,365 shares in the last quarter. Finally, PFA Pension Forsikringsaktieselskab purchased a new stake in PayPal during the fourth quarter worth $51,680,000. 68.32% of the stock is owned by hedge funds and other institutional investors.

Insider Transactions at PayPal

In related news, EVP Frank Keller sold 29,581 shares of the firm's stock in a transaction dated Tuesday, March 3rd. The shares were sold at an average price of $46.02, for a total transaction of $1,361,317.62. Following the completion of the sale, the executive vice president directly owned 51,567 shares in the company, valued at approximately $2,373,113.34. This trade represents a 36.45% 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 firm's stock in a transaction dated Tuesday, March 3rd. The stock was sold at an average price of $44.73, for a total transaction of $98,763.84. Following the sale, the chief accounting officer owned 1,140 shares of the company's stock, valued at approximately $50,992.20. The trade was a 65.95% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 96,199 shares of company stock valued at $4,294,018. Corporate insiders own 0.63% of the company's stock.

Analyst Ratings Changes

A number of brokerages recently issued reports on PYPL. Canaccord Genuity Group reissued a "hold" rating and set a $42.00 price target (down from $100.00) on shares of PayPal in a report on Wednesday, February 4th. Daiwa Securities Group raised shares of PayPal from a "hold" rating to an "outperform" rating in a report on Wednesday, May 6th. JPMorgan Chase & Co. lowered their price target on shares of PayPal from $70.00 to $46.00 and set a "neutral" rating on the stock in a report on Wednesday, February 4th. TD Cowen reissued a "hold" rating on shares of PayPal in a report on Tuesday, February 3rd. Finally, Bank of America lowered their price target on shares of PayPal from $55.00 to $53.00 and set a "neutral" rating on the stock in a report on Wednesday, May 6th. Eight research analysts have rated the stock with a Buy rating, thirty-two have assigned a Hold rating and five have given a Sell rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus price target of $55.85.

Key Headlines Impacting PayPal

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: Analysts and commentary point to PayPal trading at a discounted valuation, with support from Venmo growth, AI-commerce initiatives, and international expansion; several pieces argue the stock may be too cheap if execution improves. Article Title
• Positive Sentiment: PayPal’s Q1 results beat expectations on revenue and profit, and the company is leaning into a new strategy under its CEO, including AI tools for small businesses and a fee-waiver push that could support merchant growth. Article Title
• Positive Sentiment: PayPal’s partnership with Anthropic to bring AI services to small businesses reinforces its effort to modernize the platform and build new revenue opportunities. Article Title
• Neutral Sentiment: The company reached a $30 million DOJ settlement over a past DEI-related program, removing a legal overhang but also highlighting governance and compliance scrutiny. Article Title
• Neutral Sentiment: Reports that UK regulators are investigating PayPal alongside Mastercard and Visa over digital-wallet competition add uncertainty, but the direct financial impact is still unclear. Article Title
• Negative Sentiment: Some analysts remain skeptical after the earnings call, citing margin pressure, transformation risk, and slower confidence in the turnaround story. Article Title
• Negative Sentiment: Investor reaction to the quarter was muted despite the revenue beat, suggesting the market is still focused on margin trends and execution risk rather than near-term growth. Article Title

PayPal Stock Performance

PYPL opened at $44.41 on Friday. The company has a quick ratio of 1.26, a current ratio of 1.26 and a debt-to-equity ratio of 0.47. The company has a market cap of $39.17 billion, a price-to-earnings ratio of 8.33, a PEG ratio of 1.11 and a beta of 1.39. PayPal Holdings, Inc. has a 52-week low of $38.46 and a 52-week high of $79.50. The firm's fifty day simple moving average is $46.61 and its two-hundred day simple moving average is $53.08.

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 the consensus estimate of $1.27 by $0.07. The business 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 company's revenue was up 7.2% compared to the same quarter last year. During the same period last year, the firm posted $1.33 earnings per share. Equities analysts anticipate that PayPal Holdings, Inc. will post 5.3 earnings per share for the current fiscal year.

PayPal Dividend Announcement

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

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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