PayPal Holdings, Inc. $PYPL Shares Purchased by Amundi

Key Points

• Amundi increased its PayPal stake by 227.6% in the first quarter, purchasing 9.59 million additional shares to own 13.8 million shares valued at approximately $624.4 million. Institutional investors collectively hold 68.32% of PayPal.
• PayPal’s second-quarter results beat expectations, with adjusted EPS of $1.38 versus $1.28 expected and revenue of $8.68 billion, up 4.8% year over year. Total payment volume rose 10% to $486.4 billion, and the company raised its full-year adjusted EPS outlook to approximately $5.38.
• Investors still face uncertainty: takeover interest reportedly involving Stripe and Advent remains unresolved, while branded checkout growth and margins remain under pressure. Analysts’ consensus rating is “Hold,” with an average price target of $55.01.

Amundi raised its stake in PayPal Holdings, Inc. (NASDAQ:PYPL - Free Report) by 227.6% during the first quarter, according to its most recent disclosure with the SEC. The fund owned 13,804,208 shares of the credit services provider's stock after buying an additional 9,590,488 shares during the quarter. Amundi owned approximately 1.56% of PayPal worth $624,364,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors also recently modified their holdings of the company. Norges Bank acquired a new position in PayPal during the 4th quarter valued at about $949,758,000. Vanguard Group Inc. grew its position in PayPal by 6.5% in 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 last quarter. SG Americas Securities LLC increased its stake in shares of PayPal by 355.1% in the first quarter. SG Americas Securities LLC now owns 4,967,170 shares of the credit services provider's stock valued at $224,665,000 after purchasing an additional 3,875,688 shares during the period. AQR Capital Management LLC increased its stake in shares of PayPal by 143.4% in the fourth quarter. AQR Capital Management LLC now owns 5,089,586 shares of the credit services provider's stock valued at $297,130,000 after purchasing an additional 2,998,286 shares during the period. Finally, First Trust Advisors LP raised its holdings in shares of PayPal by 65.9% during the first quarter. First Trust Advisors LP now owns 5,123,978 shares of the credit services provider's stock valued at $231,757,000 after buying an additional 2,035,268 shares during the last quarter. Institutional investors and hedge funds own 68.32% of the company's stock.

Insider Activity

In related news, insider Suzan Kereere sold 3,379 shares of the business's stock in a transaction that occurred on Wednesday, June 3rd. The shares were sold at an average price of $42.79, for a total value of $144,587.41. Following the sale, the insider directly owned 30,983 shares in the company, valued at $1,325,762.57. The trade was a 9.83% decrease in their position. 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 4,612 shares of the stock in a transaction that occurred on Wednesday, June 3rd. The shares were sold at an average price of $42.54, for a total transaction of $196,194.48. Following the sale, the insider directly owned 41,567 shares of the company's stock, valued at approximately $1,768,260.18. This represents a 9.99% 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. In the last 90 days, insiders have sold 8,543 shares of company stock valued at $364,325. Insiders own 0.63% of the company's stock.

Key Stories Impacting PayPal

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: Q2 results exceeded expectations: Adjusted earnings reached $1.38 per share versus the $1.28 consensus, while revenue rose 4.8% year over year to $8.68 billion, ahead of the $8.47 billion estimate. PayPal's Q2 Earnings Beat Estimates on TPV & Revenue Growth
• Positive Sentiment: Payment activity remained healthy: Total payment volume increased 10% to $486.4 billion, payment transactions rose 8% to 6.8 billion, and growth at Venmo and Braintree supported the quarter. PayPal also generated $1.8 billion in free cash flow and repurchased approximately 33 million shares. PayPal Q2 revenue rises 5% to $8.7 billion
• Positive Sentiment: Full-year outlook was raised: PayPal now expects 2026 adjusted EPS of approximately $5.38, improving investor confidence that cost reductions and the turnaround under CEO Enrique Lores are beginning to take hold. PayPal presses with turnaround as sale questions linger
• Neutral Sentiment: Takeover speculation remains a catalyst: Management provided no definitive update on reported interest from Stripe and Advent International. PayPal appears open to a higher offer than the reported roughly $53 billion proposal, leaving potential deal-related upside but also uncertainty. PayPal leaves the door open to a higher takeover offer
• Negative Sentiment: Profitability and near-term growth remain concerns: Higher investments weighed on margins, GAAP net income declined year over year, and branded checkout growth was only about 2%. Investors also viewed third-quarter guidance as soft, while analysts maintained Hold ratings pending stronger checkout momentum and evidence that cost savings can offset competitive pressure. PayPal delivers Q2 earnings beat but soft Q3 guidance

Wall Street Analyst Weigh In

Several equities analysts have recently issued reports on the company. Mizuho reiterated a "neutral" rating and set a $50.00 price objective (down from $60.00) on shares of PayPal in a research report on Thursday, April 16th. Barclays upgraded PayPal from an "underweight" rating to an "equal weight" rating and raised their target price for the company from $42.00 to $55.00 in a research report on Thursday, July 16th. Daiwa Securities Group raised PayPal from a "hold" rating to an "outperform" rating in a research note on Wednesday, May 6th. BNP Paribas Exane boosted their price target on PayPal from $41.00 to $43.50 and gave the stock a "neutral" rating in a research report on Friday, April 10th. Finally, Royal Bank Of Canada reissued an "outperform" rating and issued a $59.00 price target on shares of PayPal in a research note on Wednesday, May 6th. Ten equities research analysts have rated the stock with a Buy rating, thirty-three have issued a Hold rating and four have issued a Sell rating to the company's stock. Based on data from MarketBeat, PayPal has an average rating of "Hold" and an average price target of $55.01.

PayPal Price Performance

Shares of NASDAQ:PYPL opened at $58.32 on Wednesday. The stock has a market cap of $51.44 billion, a price-to-earnings ratio of 10.94, a PEG ratio of 1.40 and a beta of 1.33. The company has a debt-to-equity ratio of 0.47, a current ratio of 1.26 and a quick ratio of 1.26. PayPal Holdings, Inc. has a 12 month low of $38.46 and a 12 month high of $79.21. The stock's 50 day moving average price is $46.22 and its 200 day moving average price is $47.02.

PayPal (NASDAQ:PYPL - Get Free Report) last issued its quarterly earnings results on Tuesday, July 28th. The credit services provider reported $1.38 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.28 by $0.10. PayPal had a return on equity of 25.02% and a net margin of 15.00%.The firm had revenue of $8.68 billion during the quarter, compared to analyst estimates of $8.47 billion. During the same period last year, the company posted $1.40 EPS. The firm's quarterly revenue was up 4.8% on a year-over-year basis. Equities research analysts anticipate that PayPal Holdings, Inc. will post 5.32 earnings per share for the current fiscal year.

PayPal Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Thursday, June 25th. Shareholders of record on Thursday, June 4th were issued a $0.14 dividend. This represents a $0.56 dividend on an annualized basis and a yield of 1.0%. The ex-dividend date of this dividend was Thursday, June 4th. PayPal's dividend payout ratio is presently 10.51%.

PayPal Profile

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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