OFI Invest Asset Management Cuts Position in PayPal Holdings, Inc. $PYPL

Key Points

• OFI Invest Asset Management cut its PayPal stake by 56% in the second quarter, selling 1.95 million shares and retaining 1.53 million shares worth approximately $65.9 million.
• PayPal reported quarterly earnings of $1.38 per share, beating estimates of $1.28, while revenue rose 4.8% year over year to $8.68 billion. The company also declared a quarterly dividend of $0.14 per share.
• Institutional ownership remains high at 68.32%, but analyst sentiment is mixed: PayPal has a consensus “Hold” rating and an average price target of $55.72, below its reported opening price of $60.59.

OFI Invest Asset Management trimmed its holdings in shares of PayPal Holdings, Inc. (NASDAQ:PYPL - Free Report) by 56.0% during the second quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 1,527,160 shares of the credit services provider's stock after selling 1,946,588 shares during the period. OFI Invest Asset Management owned about 0.17% of PayPal worth $65,943,000 at the end of the most recent reporting period.

Several other institutional investors also recently bought and sold shares of the business. Norges Bank acquired a new stake in shares of PayPal in the fourth quarter worth $949,758,000. Bank of America Corp DE lifted its holdings in shares of PayPal by 67.9% during the 1st quarter. Bank of America Corp DE now owns 25,614,720 shares of the credit services provider's stock valued at $1,158,554,000 after acquiring an additional 10,356,256 shares in the last quarter. Amundi lifted its holdings in shares of PayPal by 227.6% during the 1st quarter. Amundi now owns 13,804,208 shares of the credit services provider's stock valued at $624,364,000 after acquiring an additional 9,590,488 shares in the last quarter. Vanguard Group Inc. boosted its position in PayPal by 6.5% during the 4th quarter. Vanguard Group Inc. now owns 90,376,927 shares of the credit services provider's stock worth $5,276,205,000 after purchasing an additional 5,534,462 shares during the period. Finally, SG Americas Securities LLC boosted its position in PayPal by 355.1% during the 1st quarter. SG Americas Securities LLC now owns 4,967,170 shares of the credit services provider's stock worth $224,665,000 after purchasing an additional 3,875,688 shares during the period. 68.32% of the stock is currently owned by hedge funds and other institutional investors.

Insider Buying and Selling at PayPal

In other PayPal news, insider Frank Keller sold 732 shares of PayPal stock in a transaction that occurred on Wednesday, July 29th. The stock was sold at an average price of $58.10, for a total transaction of $42,529.20. Following the sale, the insider directly owned 41,567 shares in the company, valued at $2,415,042.70. The trade was a 1.73% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Suzan Kereere sold 3,379 shares of PayPal stock in a transaction that occurred on Wednesday, June 3rd. The stock was sold at an average price of $42.79, for a total value of $144,587.41. Following the sale, the insider owned 30,983 shares in the company, valued at $1,325,762.57. This represents a 9.83% decrease in their ownership of the stock. 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. Insiders sold a total of 10,612 shares of company stock worth $484,534 in the last 90 days. 0.63% of the stock is owned by corporate insiders.

PayPal Stock Performance

Shares of PYPL stock opened at $60.59 on Friday. The company has a debt-to-equity ratio of 0.55, a current ratio of 1.29 and a quick ratio of 1.29. The company's fifty day moving average price is $49.72 and its two-hundred day moving average price is $47.18. The firm has a market capitalization of $51.83 billion, a P/E ratio of 11.45, a P/E/G ratio of 1.45 and a beta of 1.30. PayPal Holdings, Inc. has a 12 month low of $38.46 and a 12 month high of $79.21.

PayPal (NASDAQ:PYPL - Get Free Report) last announced its earnings results on Tuesday, July 28th. The credit services provider reported $1.38 earnings per share for the quarter, beating the consensus estimate of $1.28 by $0.10. PayPal had a return on equity of 24.39% and a net margin of 14.36%.The company had revenue of $8.68 billion during the quarter, compared to the consensus estimate of $8.47 billion. During the same period last year, the firm earned $1.40 earnings per share. The company's revenue was up 4.8% on a year-over-year basis. On average, research analysts anticipate that PayPal Holdings, Inc. will post 5.37 earnings per share for the current fiscal year.

PayPal Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, September 25th. Investors of record on Friday, September 4th will be issued a $0.14 dividend. The ex-dividend date of this dividend is Friday, September 4th. This represents a $0.56 dividend on an annualized basis and a yield of 0.9%. PayPal's dividend payout ratio is currently 10.59%.

Analyst Upgrades and Downgrades

Several research analysts have commented on the company. Bank of America cut their price objective on PayPal from $55.00 to $53.00 and set a "neutral" rating on the stock in a research report on Wednesday, May 6th. Mizuho upped their target price on PayPal from $50.00 to $60.00 and gave the stock a "neutral" rating in a research report on Wednesday, July 29th. Clear Str raised PayPal to a "hold" rating in a research report on Thursday, July 16th. Susquehanna increased their target price on PayPal from $63.00 to $67.00 and gave the company a "positive" rating in a research note on Wednesday, July 29th. Finally, UBS Group set a $45.00 target price on PayPal in a report on Wednesday, July 29th. Nine equities research analysts have rated the stock with a Buy rating, thirty-four have assigned a Hold rating and four have issued a Sell rating to the company. According to MarketBeat, the company currently has a consensus rating of "Hold" and an average target price of $55.72.

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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