PayPal Holdings, Inc. $PYPL Shares Acquired by Bank of America Corp DE

Key Points

• Bank of America increased its PayPal stake by 67.9% in the first quarter, acquiring 10.36 million additional shares and bringing its holdings to 25.6 million shares worth approximately $1.16 billion. Institutional investors collectively own 68.32% of PayPal.
• PayPal reported quarterly earnings of $1.38 per share on $8.68 billion in revenue, exceeding analyst estimates of $1.28 and $8.47 billion, respectively. Revenue increased 4.8% year over year, and analysts expect full-year earnings of $5.35 per share.
• PayPal declared a quarterly dividend of $0.14 per share, equivalent to an annualized yield of about 1.0%. Despite several analysts raising price targets, the overall analyst consensus remains “Hold”, with a consensus target price of $55.50.

Bank of America Corp DE increased its holdings in PayPal Holdings, Inc. (NASDAQ:PYPL - Free Report) by 67.9% during the 1st quarter, according to the company in its most recent disclosure with the SEC. The institutional investor owned 25,614,720 shares of the credit services provider's stock after acquiring an additional 10,356,256 shares during the quarter. Bank of America Corp DE owned approximately 2.90% of PayPal worth $1,158,554,000 as of its most recent filing with the SEC.

A number of other institutional investors and hedge funds have also recently bought and sold shares of PYPL. Vanguard Group Inc. boosted its stake in shares of 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 acquiring an additional 5,534,462 shares in the last quarter. Rule One Partners LLC purchased a new stake in PayPal during the fourth quarter valued at about $2,043,000. Step Capital Management Pte. Ltd. purchased a new stake in PayPal during the fourth quarter valued at about $6,130,000. Swiss National Bank boosted its holdings in shares of PayPal by 4.9% in the first quarter. Swiss National Bank now owns 2,608,600 shares of the credit services provider's stock worth $117,987,000 after buying an additional 121,400 shares during the period. Finally, Easterly Investment Partners LLC boosted its holdings in shares of PayPal by 705.2% in the fourth quarter. Easterly Investment Partners LLC now owns 100,651 shares of the credit services provider's stock worth $5,876,000 after buying an additional 88,151 shares during the period. Hedge funds and other institutional investors own 68.32% of the company's stock.

PayPal Trading Down 0.8%

Shares of PYPL opened at $57.21 on Friday. The stock's fifty day simple moving average is $47.03 and its 200-day simple moving average is $47.09. The firm has a market capitalization of $48.94 billion, a PE ratio of 10.81, a price-to-earnings-growth ratio of 1.43 and a beta of 1.33. PayPal Holdings, Inc. has a 12-month low of $38.46 and a 12-month high of $79.21. The company has a quick ratio of 1.26, a current ratio of 1.29 and a debt-to-equity ratio of 0.55.

PayPal (NASDAQ:PYPL - Get Free Report) last announced its quarterly earnings data on Tuesday, July 28th. The credit services provider reported $1.38 earnings per share for the quarter, topping the consensus estimate of $1.28 by $0.10. The firm had revenue of $8.68 billion during the quarter, compared to analysts' expectations of $8.47 billion. PayPal had a return on equity of 24.39% and a net margin of 14.36%.The company's quarterly revenue was up 4.8% compared to the same quarter last year. During the same period in the previous year, the business posted $1.40 EPS. As a group, research analysts predict that PayPal Holdings, Inc. will post 5.35 earnings per share for the current year.

PayPal Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, September 25th. Shareholders of record on Friday, September 4th will be paid 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 1.0%. PayPal's dividend payout ratio (DPR) is presently 10.59%.

Trending Headlines about PayPal

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: PayPal’s second-quarter results exceeded expectations, with adjusted earnings per share of $1.38 versus the $1.28 consensus and revenue of $8.68 billion versus $8.47 billion expected. Management also raised its full-year outlook, citing improving branded checkout, Venmo expansion and cost savings. PayPal Shares Pause as Raised Guidance Validates Turnaround Narrative
• Positive Sentiment: Several analysts raised their price targets following the earnings report, including JPMorgan, TD Cowen, Citigroup and Keefe, Bruyette & Woods. The targets—ranging from the mid-$50s to $70—suggest some analysts see additional upside if PayPal sustains its operational improvements. JPMorgan Analyst Says PayPal Stock Could Rise
• Positive Sentiment: Value-focused commentary highlights PYPL’s relatively low earnings multiple, arguing that the valuation could provide support if the company converts its stronger guidance into consistent growth. PayPal: A Steal At Less Than 10x Earnings
• Neutral Sentiment: Analyst opinion remains mixed. Canaccord Genuity maintained a hold rating, while Wells Fargo increased its target to $56 but kept an equal-weight rating. The broader brokerage consensus remains “hold,” reflecting improved results but limited confidence in PayPal’s longer-term growth trajectory. Canaccord Gives PayPal a Hold Rating
• Neutral Sentiment: Speculation about takeover interest, including a reported bid involving Stripe and Advent International, could support valuation, but no transaction is confirmed and investors remain focused on PayPal’s standalone turnaround. Is Takeout Target PayPal a Buy?
• Negative Sentiment: Bearish analysis says PayPal’s substantial share-repurchase program has not translated into sustained stock-price gains, underscoring skepticism about capital allocation and the company’s growth prospects. PayPal’s $17 Billion Bet Against Wall Street
• Negative Sentiment: Investors continue to monitor margin pressure, branded-checkout execution and PayPal’s slower growth relative to major payments peers. Two insiders also sold shares under pre-arranged Rule 10b5-1 plans; the sales are relatively small but may add modest near-term caution. PayPal Insider Selling

Wall Street Analysts Forecast Growth

Several research firms recently commented on PYPL. Mizuho raised their price target on shares of PayPal from $50.00 to $60.00 and gave the stock a "neutral" rating in a report on Wednesday. Jefferies Financial Group raised shares of PayPal from a "hold" rating to a "buy" rating in a research note on Tuesday. William Blair reiterated a "market perform" rating on shares of PayPal in a report on Wednesday, July 15th. Citigroup increased their target price on shares of PayPal from $48.00 to $61.00 and gave the stock a "neutral" rating in a research report on Wednesday. Finally, Deutsche Bank Aktiengesellschaft restated a "hold" rating and set a $45.00 target price on shares of PayPal in a report on Wednesday. Nine investment analysts have rated the stock with a Buy rating, thirty-four have issued a Hold rating and four have assigned a Sell rating to the company. According to data from MarketBeat.com, the company has a consensus rating of "Hold" and a consensus target price of $55.50.

Insider Buying and Selling at PayPal

In other news, insider Frank Keller sold 4,612 shares of the stock in a transaction on Wednesday, June 3rd. The stock was sold at an average price of $42.54, for a total value of $196,194.48. Following the transaction, the insider owned 41,567 shares of the company's stock, valued at $1,768,260.18. This represents a 9.99% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Suzan Kereere sold 3,379 shares of the business's stock in a transaction 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 completion of the transaction, the insider directly owned 30,983 shares of the company's stock, valued at $1,325,762.57. This trade represents a 9.83% 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. Over the last ninety days, insiders have sold 10,612 shares of company stock valued at $484,534. 0.63% of the stock is currently owned by insiders.

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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