Maxi Investments CY Ltd Cuts Holdings in PayPal Holdings, Inc. $PYPL

Key Points

• Maxi Investments CY Ltd trimmed its PayPal stake by 47.9% in Q4, selling 50,000 shares and leaving it with 54,455 shares worth about $3.18 million.
• PayPal beat Q1 revenue and EPS but cut guidance and launched a restructuring that includes ~20% workforce reductions (~4,760 jobs) and a $1.5B cost‑savings plan, triggering analyst downgrades and a UK FCA competition probe.
• PayPal announced a quarterly dividend of $0.14 (1.2% yield); insiders have been net sellers (96,199 shares in the last 90 days) and the stock trades near $46 with a market cap around $40.8B and a PE of ~8.7.

Maxi Investments CY Ltd trimmed its stake in PayPal Holdings, Inc. (NASDAQ:PYPL - Free Report) by 47.9% in the 4th quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 54,455 shares of the credit services provider's stock after selling 50,000 shares during the period. Maxi Investments CY Ltd's holdings in PayPal were worth $3,179,000 at the end of the most recent quarter.

A number of other institutional investors have also modified their holdings of the company. Brighton Jones LLC boosted its position in shares of PayPal by 15.2% in the 4th quarter. Brighton Jones LLC now owns 6,989 shares of the credit services provider's stock worth $596,000 after purchasing an additional 924 shares in the last quarter. Revolve Wealth Partners LLC acquired a new stake in PayPal in the 4th quarter worth approximately $248,000. Sivia Capital Partners LLC grew its position in PayPal by 41.5% during the 2nd quarter. Sivia Capital Partners LLC now owns 4,470 shares of the credit services provider's stock worth $332,000 after purchasing an additional 1,310 shares during the last quarter. United Bank increased its stake in PayPal by 40.1% during the 2nd quarter. United Bank now owns 17,388 shares of the credit services provider's stock valued at $1,292,000 after purchasing an additional 4,974 shares in the last quarter. Finally, Federated Hermes Inc. raised its holdings in shares of PayPal by 17.9% in the second quarter. Federated Hermes Inc. now owns 18,909 shares of the credit services provider's stock worth $1,405,000 after buying an additional 2,865 shares during the last quarter. 68.32% of the stock is currently owned by institutional investors.

Key Stories Impacting PayPal

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: Analyst support: Royal Bank of Canada reaffirmed an Outperform rating ($59 PT) and Daiwa upgraded PYPL to Outperform, providing near-term buy-side endorsement that could limit downside. RBC Outperform (Benzinga) Daiwa Upgrade
• Positive Sentiment: Cantor Fitzgerald raised its price target (to $54) — another signal some brokers see valuation upside if execution/stability returns. Cantor Fitzgerald PT Raise
• Neutral Sentiment: Q1 was a mixed beat: revenue and EPS topped estimates but management cut guidance and emphasized restructuring, leaving investors uncertain whether growth or margin recovery will follow. Q1 Results and Valuation (Yahoo)
• Neutral Sentiment: Sought lifeline/strategic analysis: coverage about a “$6 billion lifeline” and other longer-term options highlights balance-sheet flexibility but leaves execution risk. PayPal's $6 Billion Lifeline
• Neutral Sentiment: Broader tech/AI-driven layoffs (e.g., Cloudflare) and industry restructuring add context to PayPal’s cuts; could signal secular efficiency pushes rather than company-specific failure. Cloudflare Layoffs (Yahoo)
• Negative Sentiment: UK regulator probe: the Financial Conduct Authority opened a competition investigation into PayPal, Mastercard and Visa over digital-wallet funding/usage — this raises regulatory uncertainty in a key international market and could pressure merchant/wallet economics. FCA Probe (Yahoo)
• Negative Sentiment: Analyst downgrades and target cuts: Macquarie cut PYPL to Neutral (PT $50) citing a back‑end loaded cost plan and soft Q2 outlook; Goldman lowered its PT to $40; Bank of America trimmed its PT — these moves lower sentiment and can trigger selling pressure. Macquarie Downgrade Goldman PT Cut BoA PT Trim
• Negative Sentiment: Large workforce reductions (~20% / ~4,760 jobs) and a $1.5B cost-savings plan were announced after profit fell — short-term profit pressure and execution risk are weighing on investor patience. PayPal Layoffs (Quartz)
• Negative Sentiment: Market reaction has been negative: despite the beats, commentary focused on weaker guidance and longer payback from cost cuts, contributing to continued share weakness. Market Reaction (TheStreet)

PayPal Trading Down 0.1%

Shares of PayPal stock opened at $46.22 on Friday. The stock has a market cap of $40.77 billion, a PE ratio of 8.67, a price-to-earnings-growth ratio of 1.33 and a beta of 1.39. The firm has a fifty day moving average price of $46.75 and a 200 day moving average price of $53.99. PayPal Holdings, Inc. has a 1 year low of $38.46 and a 1 year high of $79.50. The company has a debt-to-equity ratio of 0.47, a current ratio of 1.26 and a quick ratio of 1.29.

PayPal (NASDAQ:PYPL - Get Free Report) last posted its quarterly earnings results on Tuesday, May 5th. The credit services provider reported $1.34 EPS for the quarter, beating the consensus estimate of $1.27 by $0.07. The company had revenue of $8.35 billion for the quarter, compared to analyst estimates of $8.05 billion. PayPal had a net margin of 15.00% and a return on equity of 25.02%. 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 5.32 earnings per share for the current year.

PayPal Announces Dividend

The business also recently announced 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. The ex-dividend date is Thursday, June 4th. This represents a $0.56 dividend on an annualized basis and a dividend yield of 1.2%. PayPal's dividend payout ratio is presently 10.35%.

Insiders Place Their Bets

In related news, insider Frank Keller sold 10,732 shares of the business's stock in a transaction on Wednesday, April 29th. The shares were sold at an average price of $49.96, for a total value of $536,170.72. Following the completion of the transaction, the insider directly owned 41,567 shares in the company, valued at $2,076,687.32. The trade was a 20.52% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Chris Natali sold 1,337 shares of the firm's stock in a transaction 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 in the company, valued at approximately $78,443.56. This represents a 45.74% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 96,199 shares of company stock worth $4,294,018. Corporate insiders own 0.63% of the company's stock.

Analyst Upgrades and Downgrades

PYPL has been the topic of a number of research analyst reports. KGI Securities reissued a "hold" rating and set a $55.00 price objective on shares of PayPal in a report on Monday, March 2nd. Cantor Fitzgerald raised their target price on PayPal from $42.00 to $54.00 and gave the stock a "neutral" rating in a research note on Tuesday. Canaccord Genuity Group reaffirmed a "hold" rating and set a $42.00 price target (down from $100.00) on shares of PayPal in a research report on Wednesday, February 4th. Stephens dropped their price target on PayPal from $65.00 to $45.00 and set an "equal weight" rating on the stock in a research note on Wednesday, February 4th. Finally, UBS Group increased their price objective on PayPal from $44.00 to $48.00 and gave the company a "neutral" rating in a report on Wednesday. Eight investment 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's stock. According to MarketBeat.com, the company presently has an average rating of "Hold" and a consensus target price of $56.42.

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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