Kovitz Investment Group Partners LLC Reduces Stock Position in PayPal Holdings, Inc. $PYPL

Key Points

• Kovitz Investment Group Partners LLC cut its PayPal stake by 48.7% in the fourth quarter, selling 226,029 shares and ending with 237,672 shares valued at about $13.9 million.
• PayPal reported better-than-expected first-quarter results, posting EPS of $1.34 versus the $1.27 estimate and revenue of $8.35 billion, up 7.2% year over year.
• Despite recent volatility, PayPal announced a quarterly dividend of $0.14 per share, while analysts currently maintain a consensus rating of “Hold” with a $55.85 average price target.

Kovitz Investment Group Partners LLC lowered its holdings in PayPal Holdings, Inc. (NASDAQ:PYPL - Free Report) by 48.7% during the fourth quarter, according to the company in its most recent filing with the SEC. The fund owned 237,672 shares of the credit services provider's stock after selling 226,029 shares during the quarter. Kovitz Investment Group Partners LLC's holdings in PayPal were worth $13,875,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors also recently added to or reduced their stakes in the stock. Bard Associates Inc. purchased a new position in shares of PayPal during the fourth quarter worth approximately $25,000. Kelleher Financial Advisors purchased a new position in PayPal during the 3rd quarter worth $30,000. Caitong International Asset Management Co. Ltd grew its position in PayPal by 15,233.3% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 460 shares of the credit services provider's stock worth $27,000 after purchasing an additional 457 shares during the last quarter. Safe Harbor Fiduciary LLC acquired a new position in PayPal in the fourth quarter valued at $28,000. Finally, Advocate Investing Services LLC acquired a new stake in shares of PayPal during the fourth quarter worth about $30,000. Institutional investors and hedge funds own 68.32% of the company's stock.

PayPal Stock Up 1.0%

PYPL stock opened at $42.51 on Friday. The firm has a 50-day moving average price of $45.65 and a 200-day moving average price of $49.31. PayPal Holdings, Inc. has a 12 month low of $38.46 and a 12 month high of $79.50. 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 $37.50 billion, a P/E ratio of 7.98, a price-to-earnings-growth ratio of 1.05 and a beta of 1.34.

PayPal (NASDAQ:PYPL - Get Free Report) last released its earnings results 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. PayPal had a net margin of 15.00% and a return on equity of 25.02%. The business had revenue of $8.35 billion for the quarter, compared to analyst estimates of $8.05 billion. During the same quarter in the previous year, the business earned $1.33 earnings per share. PayPal's revenue for the quarter was up 7.2% on a year-over-year basis. As a group, equities research analysts anticipate that PayPal Holdings, Inc. will post 5.3 EPS for the current fiscal year.

PayPal Announces Dividend

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

PayPal News Summary

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: PayPal is deepening Venmo integration and expanding merchant checkout adoption, which could support higher payment volume and better monetization of its consumer and merchant ecosystem. PayPal Deepens Venmo Integration: Can It Transform Digital Commerce?
• Positive Sentiment: PayPal’s decision to wind down its decade-old venture capital arm suggests a more disciplined corporate overhaul focused on cost control and core payments, which some investors may view as a positive step. PayPal Ventures shutters as company restructuring continues
• Positive Sentiment: News that PayPal is exploring strategic options for its venture capital arm reinforces the view that management is prioritizing focus and efficiency over noncore investments. PayPal Weighs Shutdown of Venture Capital Arm in Corporate Overhaul
• Positive Sentiment: PayPal’s stock also rose in the prior session, indicating buyers have been willing to step in despite broader market weakness. Paypal (PYPL) Gains As Market Dips: What You Should Know
• Neutral Sentiment: Analyst-style articles comparing PayPal with peers like Shift4 and highlighting concerns about PayPal’s brand momentum are keeping attention on competitive pressure, but they do not appear to be triggering a major new catalyst on their own. Shift4 Payments vs. PayPal: Which Technology Stock Is a Better Buy in 2026?
• Negative Sentiment: Coverage describing PayPal as “yesterday’s news” and questioning its growth narrative may weigh on sentiment by reinforcing concerns that the stock lacks a strong re-rating catalyst. PayPal Is Yesterday's News. Is This Fintech the Better Buy?

Analysts Set New Price Targets

Several research firms recently weighed in on PYPL. Bank of America dropped their price objective on PayPal from $55.00 to $53.00 and set a "neutral" rating for the company in a research note on Wednesday, May 6th. BMO Capital Markets began coverage on PayPal in a research note on Tuesday, April 21st. They set a "market perform" rating and a $52.00 price objective for the company. Royal Bank Of Canada reaffirmed an "outperform" rating and issued a $59.00 price target on shares of PayPal in a research note on Wednesday, May 6th. Needham & Company LLC reissued a "hold" rating on shares of PayPal in a report on Tuesday, May 5th. Finally, The Goldman Sachs Group decreased their price objective on shares of PayPal from $41.00 to $40.00 in a research note on Wednesday, May 6th. Eight 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 company. According to data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus price target of $55.85.

Insiders Place Their Bets

In related news, insider Suzan Kereere sold 3,379 shares of the company's stock in a transaction that occurred 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 sale, the insider directly owned 30,983 shares in the company, valued at approximately $1,325,762.57. This represents a 9.83% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through 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 that occurred on Wednesday, April 29th. The shares were sold at an average price of $49.46, for a total transaction of $66,128.02. Following the sale, the chief accounting officer owned 1,586 shares of the company's stock, valued at approximately $78,443.56. The trade was a 45.74% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 20,612 shares of company stock valued at $966,623. Insiders own 0.63% of the company's stock.

PayPal Company 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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