Invenomic Capital Management LP Buys 205,856 Shares of PayPal Holdings, Inc. $PYPL

Key Points

• Invenomic Capital Management more than doubled its PayPal stake in Q4, adding 205,856 shares and bringing its total holding to 404,617 shares worth about $23.6 million.
• PayPal recently reported quarterly results that beat Wall Street expectations, with EPS of $1.34 and revenue of $8.35 billion, both above estimates, while revenue rose 7.2% year over year.
• The stock was trading down about 3.6% around $42.08, and despite a low valuation, analyst sentiment remains mixed with an average Hold rating and consensus price target of $55.85.

Invenomic Capital Management LP boosted its position in shares of PayPal Holdings, Inc. (NASDAQ:PYPL - Free Report) by 103.6% during the fourth quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 404,617 shares of the credit services provider's stock after acquiring an additional 205,856 shares during the period. PayPal accounts for about 1.1% of Invenomic Capital Management LP's investment portfolio, making the stock its 25th largest position. Invenomic Capital Management LP's holdings in PayPal were worth $23,622,000 at the end of the most recent reporting period.

Several other large investors have also added to or reduced their stakes in PYPL. Bard Associates Inc. bought a new stake in shares of PayPal during the 4th quarter valued at $25,000. Kelleher Financial Advisors bought a new position in PayPal in the 3rd quarter worth $30,000. Caitong International Asset Management Co. Ltd boosted its holdings in PayPal by 15,233.3% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 460 shares of the credit services provider's stock worth $27,000 after buying an additional 457 shares during the period. Advocate Investing Services LLC purchased a new stake in PayPal in the 4th quarter worth $30,000. Finally, Private Wealth Asset Management LLC increased its stake in PayPal by 8,700.0% in the 4th quarter. Private Wealth Asset Management LLC now owns 528 shares of the credit services provider's stock worth $31,000 after buying an additional 522 shares in the last quarter. Hedge funds and other institutional investors own 68.32% of the company's stock.

PayPal News Summary

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: PayPal is deepening Venmo integration and merchant checkout adoption, which supports its growth strategy by boosting payment activity and monetization. PayPal Deepens Venmo Integration: Can It Transform Digital Commerce?
• Positive Sentiment: Closing the venture arm may free up capital and management attention for PayPal’s higher-priority businesses, especially payments and checkout. PayPal Weighs Shutdown of Venture Capital Arm in Corporate Overhaul
• Neutral Sentiment: Several articles frame PayPal as a value or turnaround idea, with shares trading at a low earnings multiple, but these are mostly opinion pieces rather than new fundamentals. PayPal Trades at Less Than 8X Earnings. Is This a Bargain or a Value Trap?
• Negative Sentiment: Analyst-style comparisons continue to suggest PayPal may be losing the growth narrative to peers like Visa and other fintech names, reinforcing concerns about slower upside. Shift4 Payments vs. PayPal: Which Technology Stock Is a Better Buy in 2026?

PayPal Trading Down 3.6%

Shares of PYPL stock opened at $42.08 on Thursday. The company has a current ratio of 1.26, a quick ratio of 1.26 and a debt-to-equity ratio of 0.47. The stock has a market capitalization of $37.12 billion, a price-to-earnings ratio of 7.89, a price-to-earnings-growth ratio of 1.09 and a beta of 1.34. PayPal Holdings, Inc. has a 12-month low of $38.46 and a 12-month high of $79.50. The stock's 50-day moving average price is $45.69 and its 200-day moving average price is $49.46.

PayPal (NASDAQ:PYPL - Get Free Report) last announced its quarterly earnings results on Tuesday, May 5th. The credit services provider reported $1.34 EPS for the quarter, beating analysts' consensus estimates of $1.27 by $0.07. The company had revenue of $8.35 billion during the quarter, compared to analyst estimates of $8.05 billion. PayPal had a return on equity of 25.02% and a net margin of 15.00%.The firm's revenue was up 7.2% on a year-over-year basis. During the same period in the prior year, the company earned $1.33 earnings per share. Equities research analysts predict that PayPal Holdings, Inc. will post 5.3 EPS for the current fiscal year.

PayPal Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, June 25th. Stockholders of record on Thursday, June 4th will be given a dividend of $0.14 per share. This represents a $0.56 dividend on an annualized basis and a dividend yield of 1.3%. The ex-dividend date is Thursday, June 4th. PayPal's dividend payout ratio is currently 10.51%.

Wall Street Analysts Forecast Growth

PYPL has been the topic of several research analyst reports. Zacks Research upgraded PayPal from a "strong sell" rating to a "hold" rating in a research report on Friday, April 17th. Needham & Company LLC reiterated a "hold" rating on shares of PayPal in a research report on Tuesday, May 5th. Royal Bank Of Canada reissued an "outperform" rating and issued a $59.00 price target on shares of PayPal in a report on Wednesday, May 6th. KGI Securities restated a "hold" rating and issued a $55.00 price target on shares of PayPal in a research note on Monday, March 2nd. Finally, BNP Paribas Exane increased their price objective on shares of PayPal from $41.00 to $43.50 and gave the company a "neutral" rating in a report on Friday, April 10th. Eight equities research analysts have rated the stock with a Buy rating, thirty-two have issued a Hold rating and five have issued a Sell rating to the stock. According to MarketBeat, the company currently has an average rating of "Hold" and a consensus price target of $55.85.

Insider Activity

In related news, insider Frank Keller sold 10,732 shares of the company's stock in a transaction on Wednesday, April 29th. The shares were sold at an average price of $49.96, for a total transaction of $536,170.72. Following the sale, the insider owned 41,567 shares of the company's stock, valued at $2,076,687.32. This represents a 20.52% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 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 on Wednesday, June 3rd. The shares were sold at an average price of $42.79, for a total transaction of $144,587.41. Following the transaction, the insider owned 30,983 shares of the company's stock, valued at $1,325,762.57. This trade represents 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. In the last ninety days, insiders sold 20,612 shares of company stock worth $966,623. 0.63% of the stock is currently owned by insiders.

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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