PayPal Holdings, Inc. $PYPL Holdings Increased by International Assets Investment Management LLC

Key Points

• International Assets Investment Management increased its PayPal position by 47.1% in the third quarter to 76,000 shares valued at approximately $3.99 million. Institutional investors and hedge funds collectively own 68.32% of PayPal’s stock.
• PayPal reported quarterly EPS of $1.45, beating analyst expectations of $1.31, while revenue rose 2% year over year to $8.58 billion but fell short of estimates. The company also declared a quarterly dividend of $0.14 per share, equivalent to a 1.0% annual yield.
• Analyst sentiment remains cautious, with the stock holding a consensus “Hold” rating and an average price target of $55.94. PayPal shares opened at $57.01, while recent concerns include slowing core checkout growth and pressure on its branded payment button.

International Assets Investment Management LLC grew its position in PayPal Holdings, Inc. (NASDAQ:PYPL - Free Report) by 47.1% during the 3rd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 76,000 shares of the credit services provider's stock after acquiring an additional 24,332 shares during the period. International Assets Investment Management LLC's holdings in PayPal were worth $3,992,000 at the end of the most recent quarter.

Other institutional investors and hedge funds have also made changes to their positions in the company. Allied Private Wealth LLC acquired a new stake in PayPal in the second quarter valued at about $25,000. Robinswood Financial LLC acquired a new position in PayPal during the 1st quarter worth approximately $26,000. Mowery & Schoenfeld Wealth Management LLC purchased a new position in shares of PayPal during the 2nd quarter worth approximately $27,000. Johnson Financial Group Inc. purchased a new position in shares of PayPal during the 2nd quarter worth approximately $27,000. Finally, Toth Financial Advisory Corp raised its stake in shares of PayPal by 448.3% during the 3rd quarter. Toth Financial Advisory Corp now owns 636 shares of the credit services provider's stock worth $33,000 after buying an additional 520 shares in the last quarter. 68.32% of the stock is currently owned by institutional investors and hedge funds.

PayPal Price Performance

PYPL stock opened at $57.01 on Monday. The firm has a 50 day moving average of $55.36 and a 200-day moving average of $50.04. PayPal Holdings, Inc. has a 12-month low of $38.46 and a 12-month high of $70.35. The company has a current ratio of 1.26, a quick ratio of 1.26 and a debt-to-equity ratio of 0.56. The company has a market cap of $47.36 billion, a price-to-earnings ratio of 10.88, a PEG ratio of 1.20 and a beta of 1.27.

PayPal (NASDAQ:PYPL - Get Free Report) last released its quarterly earnings results on Tuesday, October 27th. The credit services provider reported $1.45 earnings per share for the quarter, topping analysts' consensus estimates of $1.31 by $0.14. PayPal had a return on equity of 24.39% and a net margin of 13.78%. The business had revenue of $8.58 billion for the quarter, compared to analysts' expectations of $8.71 billion. During the same quarter in the prior year, the firm posted $1.34 EPS. The company's revenue was up 2.0% compared to the same quarter last year. As a group, equities analysts expect that PayPal Holdings, Inc. will post 5.58 EPS for the current fiscal year.

PayPal Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, December 24th. Shareholders of record on Friday, December 4th will be given a dividend of $0.14 per share. This represents a $0.56 dividend on an annualized basis and a yield of 1.0%. The ex-dividend date is Friday, December 4th. PayPal's payout ratio is presently 10.69%.

Wall Street Analyst Weigh In

Several analysts have recently commented on PYPL shares. Truist Financial raised their price target on PayPal from $53.00 to $58.00 and gave the company a "hold" rating in a report on Friday, October 23rd. UBS Group dropped their price objective on PayPal from $61.00 to $60.00 and set a "neutral" rating on the stock in a report on Wednesday. Canaccord Genuity Group reiterated a "hold" rating and issued a $55.00 price objective on shares of PayPal in a research report on Wednesday, October 28th. Bank of America raised their target price on PayPal from $53.00 to $54.00 and gave the company an "underperform" rating in a report on Wednesday. Finally, Keefe, Bruyette & Woods raised their target price on PayPal from $55.00 to $70.00 and gave the company an "outperform" rating in a report on Wednesday, July 29th. Eight equities research analysts have rated the stock with a Buy rating, thirty-one have given a Hold rating and six have issued a Sell rating to the company's stock. According to MarketBeat, the stock presently has an average rating of "Hold" and an average price target of $55.94.

PayPal News Summary

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: PayPal’s earnings-call commentary highlighted progress in diversifying beyond its traditional checkout business, including growth in financial services, strong Venmo engagement, product expansion and continued cost discipline. These developments suggest improving operating execution and helped support the stock. The 5 most interesting analyst questions from PayPal’s Q3 earnings call
• Positive Sentiment: PayPal remains viewed as a potentially attractive value stock: commentary points to ongoing revenue growth, robust free cash flow and substantial share-repurchase capacity. Its relatively low valuation could provide downside support if the turnaround gains traction. Is PayPal Stock a Value or a Value Trap?
• Neutral Sentiment: KeyCorp raised its 2027 EPS forecasts for the first and third quarters but lowered its fourth-quarter estimate, leaving the overall earnings outlook mixed rather than materially changed.
• Neutral Sentiment: PayPal is included among financial-transaction companies that could benefit from resilient consumer spending, cross-border payments and strategic acquisitions. However, rising technology costs and inflation remain industry-wide risks. 5 Financial Transaction Stocks to Watch Amid Cost and Inflation Pressure
• Negative Sentiment: Barclays downgraded PayPal to Underweight and cut its price target to $53 from $56, citing slowing growth in core checkout, secular pressure on the branded button and a lower likelihood of a takeover. Barclays lowers PayPal stock to Underweight on slowing fundamentals
• Negative Sentiment: Several firms, including Canaccord Genuity, Needham, BTIG and Bernstein, maintained Hold or Neutral views, while Citigroup lowered its expectations. The broad lack of bullish analyst conviction continues to weigh on sentiment.

Insiders Place Their Bets

In other news, insider Suzan Kereere sold 3,379 shares of PayPal stock in a transaction on Thursday, September 3rd. The stock was sold at an average price of $55.72, for a total transaction of $188,277.88. Following the completion of the transaction, the insider owned 30,983 shares of the company's stock, valued at $1,726,372.76. The trade was a 9.83% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Chris Natali sold 552 shares of the business's stock in a transaction dated Thursday, September 3rd. The stock was sold at an average price of $54.80, for a total transaction of $30,249.60. Following the completion of the sale, the chief accounting officer owned 2,400 shares in the company, valued at $131,520. This represents a 18.70% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 13,437 shares of company stock worth $768,417. 0.63% of the stock is owned by corporate insiders.

PayPal Company Profile

PayPal Holdings, Inc operates a global digital payments platform that enables consumers and businesses to send, receive, and manage money online and through mobile devices. Its services support online checkout, peer-to-peer payments, money transfers, payment processing, invoicing, and other commerce-related transactions.

The company's portfolio includes the PayPal and Venmo brands, Braintree's payment processing technology, and Xoom's international money transfer service. PayPal also offers merchant tools, digital wallets, payment solutions, and consumer financing products through its platform and related services.

PayPal traces its origins to 1998 and became an independent publicly traded company after separating from eBay in 2015.

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