Lindsell Train Ltd Sells 118,995 Shares of PayPal Holdings, Inc. $PYPL

Key Points

• Lindsell Train Ltd trimmed its PayPal stake by 2.8% in the first quarter, selling 118,995 shares but still holding 4.18 million shares worth about $189 million. PayPal remains a meaningful part of the fund’s portfolio, making up 6.0% of assets.
• Analyst sentiment remains mixed, with several firms cutting price targets and Goldman Sachs reportedly issuing a sell rating. Even so, PayPal still carries a consensus Hold rating and an average target price of $55.01.
• PayPal’s latest earnings beat expectations, with EPS of $1.34 and revenue of $8.35 billion, while revenue rose 7.2% year over year. The stock still faces investor caution over slowing growth and profitability pressure, despite a low valuation and ongoing cost-cutting efforts.

Lindsell Train Ltd trimmed its position in shares of PayPal Holdings, Inc. (NASDAQ:PYPL - Free Report) by 2.8% during the first quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm owned 4,179,623 shares of the credit services provider's stock after selling 118,995 shares during the quarter. PayPal accounts for 6.0% of Lindsell Train Ltd's investment portfolio, making the stock its 9th largest holding. Lindsell Train Ltd owned 0.46% of PayPal worth $189,044,000 at the end of the most recent quarter.

Other large investors also recently modified their holdings of the company. Bard Associates Inc. acquired a new position in PayPal during the 4th quarter valued at about $25,000. Caitong International Asset Management Co. Ltd boosted its holdings 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 acquiring an additional 457 shares during the last quarter. Safe Harbor Fiduciary LLC bought a new stake in shares of PayPal in the 4th quarter worth $28,000. Kelleher Financial Advisors purchased a new stake in shares of PayPal in the third quarter valued at about $30,000. Finally, Advocate Investing Services LLC purchased a new stake in shares of PayPal in the fourth quarter valued at about $30,000. 68.32% of the stock is currently owned by institutional investors.

Key Headlines Impacting PayPal

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: Piper Sandler upgraded PayPal from “neutral” to “hold,” which suggests some analysts see limited downside and a more balanced risk/reward setup. The Fly report on Piper Sandler upgrade
• Positive Sentiment: Multiple recent writeups say PayPal looks cheap on valuation, with forward earnings multiples near the lowest levels in years, which could attract value-oriented investors if execution improves. TipRanks article
• Positive Sentiment: Commentary also points to PayPal’s cost-cutting and AI-focused restructuring as potential margin tailwinds over time, supporting the case that the stock may be undervalued. Yahoo Finance article
• Neutral Sentiment: Several sector and comparison pieces this week, including articles on payment peers and fintech valuations, kept PayPal in focus but did not add a clear new catalyst for the stock. Motley Fool comparison
• Neutral Sentiment: PayPal is also being discussed as part of broader adoption of AI commerce infrastructure, which could be a long-term positive but is not an immediate earnings driver. Fortune article on AI shopping
• Negative Sentiment: Investor caution remains high because recent reporting and analysis highlight slowing growth, softer outlooks for Venmo and branded checkout, and pressure on profitability. Quiver Quantitative report
• Negative Sentiment: Goldman Sachs reportedly issued a “sell” rating, adding to the cautious analyst tone and reinforcing worries that estimates may still need to come down. The Globe and Mail report
• Negative Sentiment: Another recent market note said PayPal fell as the broader market gained, underscoring that investors are still skeptical about the turnaround story. Yahoo Finance market recap

Analyst Ratings Changes

Several research analysts recently weighed in on PYPL shares. Mizuho restated a "neutral" rating and set a $50.00 price target (down from $60.00) on shares of PayPal in a report on Thursday, April 16th. Loop Capital began coverage on shares of PayPal in a research note on Tuesday, March 31st. They issued a "hold" rating and a $46.00 price objective for the company. Bank of America dropped their target price on shares of PayPal from $55.00 to $53.00 and set a "neutral" rating on the stock in a research report on Wednesday, May 6th. Royal Bank Of Canada restated an "outperform" rating and issued a $59.00 target price on shares of PayPal in a research note on Wednesday, May 6th. Finally, Deutsche Bank Aktiengesellschaft cut their target price on PayPal from $50.00 to $45.00 in a research note on Monday, May 11th. Eight investment analysts have rated the stock with a Buy rating, thirty-two have issued a Hold rating and five have given a Sell rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of "Hold" and an average target price of $55.01.

Insider Activity

In other PayPal news, insider Suzan Kereere sold 3,379 shares of the company's stock in a transaction dated 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 of the company's stock, valued at $1,325,762.57. This represents a 9.83% 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 Frank Keller sold 10,732 shares of the stock in a transaction dated Wednesday, April 29th. The stock was sold at an average price of $49.96, for a total transaction of $536,170.72. Following the transaction, 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 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 20,612 shares of company stock valued at $966,623 in the last 90 days. Insiders own 0.63% of the company's stock.

PayPal Stock Performance

Shares of PYPL stock opened at $44.07 on Thursday. The firm has a market cap of $38.87 billion, a price-to-earnings ratio of 8.27, a P/E/G ratio of 1.08 and a beta of 1.33. The company has a debt-to-equity ratio of 0.47, a quick ratio of 1.26 and a current ratio of 1.26. PayPal Holdings, Inc. has a 52 week low of $38.46 and a 52 week high of $79.50. The firm's 50-day simple moving average is $44.71 and its two-hundred day simple moving average is $48.13.

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 for the quarter, beating analysts' consensus estimates of $1.27 by $0.07. The firm had revenue of $8.35 billion during 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 in the prior year, the firm earned $1.33 EPS. As a group, equities analysts forecast that PayPal Holdings, Inc. will post 5.3 earnings per share for the current year.

PayPal Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Thursday, June 25th. Stockholders of record on Thursday, June 4th were 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 of this dividend was Thursday, June 4th. PayPal's dividend payout ratio is currently 10.51%.

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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