PayPal Holdings, Inc. $PYPL Shares Purchased by Kovitz Investment Group Partners LLC

Key Points

• Kovitz Investment Group Partners LLC increased its PayPal stake by 21.1% in Q3, buying 80,744 shares and raising its holding to 463,701 shares valued at about $31.1 million.
• Insider selling and operational headwinds: Suzan Kereere sold 37,613 shares for roughly $1.56M and insiders have sold 42,304 shares (~$1.75M) over the past three months; the company also reported a Q4 earnings and revenue miss and an abrupt CEO change that has spurred class-action filings.
• Analyst stance mixed but cautious: Several firms cut targets (Citigroup to $42, Goldman Sachs to $41) while the consensus remains a "Hold" with an average price target near $61.03.

Kovitz Investment Group Partners LLC boosted its position in PayPal Holdings, Inc. (NASDAQ:PYPL - Free Report) by 21.1% in the 3rd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 463,701 shares of the credit services provider's stock after purchasing an additional 80,744 shares during the period. Kovitz Investment Group Partners LLC's holdings in PayPal were worth $31,096,000 as of its most recent SEC filing.

Other institutional investors and hedge funds have also made changes to their positions in the company. MUFG Securities EMEA plc grew its holdings in PayPal by 100.4% during the 2nd quarter. MUFG Securities EMEA plc now owns 385 shares of the credit services provider's stock valued at $29,000 after buying an additional 87,524 shares during the last quarter. Cloud Capital Management LLC purchased a new stake in shares of PayPal in the third quarter valued at $30,000. VSM Wealth Advisory LLC acquired a new stake in shares of PayPal during the second quarter valued at $36,000. Total Investment Management Inc. acquired a new stake in shares of PayPal during the second quarter valued at $38,000. Finally, True Wealth Design LLC increased its position in PayPal by 285.3% during the 3rd quarter. True Wealth Design LLC now owns 524 shares of the credit services provider's stock worth $35,000 after purchasing an additional 388 shares in the last quarter. 68.32% of the stock is currently owned by hedge funds and other institutional investors.

Insiders Place Their Bets

In other news, insider Suzan Kereere sold 37,613 shares of PayPal stock in a transaction that occurred on Wednesday, February 18th. The stock was sold at an average price of $41.49, for a total transaction of $1,560,563.37. Following the sale, the insider owned 30,983 shares of the company's stock, valued at approximately $1,285,484.67. The trade was a 54.83% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CAO Chris Natali sold 1,213 shares of the stock in a transaction that occurred on Tuesday, February 17th. The stock was sold at an average price of $40.49, for a total value of $49,114.37. Following the completion of the transaction, the chief accounting officer directly owned 404 shares of the company's stock, valued at $16,357.96. This trade represents a 75.02% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 42,304 shares of company stock valued at $1,749,493 over the last three months. Company insiders own 0.08% of the company's stock.

Wall Street Analyst Weigh In

A number of research analysts have weighed in on the company. Citigroup dropped their price objective on shares of PayPal from $60.00 to $42.00 and set a "neutral" rating for the company in a research note on Wednesday, February 4th. Zacks Research lowered shares of PayPal from a "hold" rating to a "strong sell" rating in a research report on Wednesday, February 11th. Compass Point raised shares of PayPal from a "sell" rating to a "neutral" rating and set a $51.00 price target on the stock in a research note on Wednesday, February 4th. The Goldman Sachs Group lowered their price objective on shares of PayPal from $64.00 to $41.00 and set a "sell" rating for the company in a research note on Wednesday, February 4th. Finally, Needham & Company LLC reaffirmed a "hold" rating on shares of PayPal in a research report on Tuesday, February 3rd. Nine research analysts have rated the stock with a Buy rating, thirty have issued a Hold rating and five have given a Sell rating to the company's stock. According to data from MarketBeat, PayPal has an average rating of "Hold" and a consensus price target of $61.03.

PayPal News Roundup

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: Deep‑value / contrarian case: commentators note PYPL trades near IPO‑era levels with a single‑digit P/E and extremely oversold technicals, which could attract value buyers if execution stabilizes. Read More.
• Positive Sentiment: Selective bull views: some analysts and features highlight Venmo, BNPL and PSP growth, strong free cash flow and buybacks/dividend as upside levers if management can defend share and improve conversion. Read More.
• Neutral Sentiment: Mixed market narrative: coverage is split between value‑buyers and skeptics who see the post‑earnings sell‑off as confirmation of secular share loss; that debate is keeping volatility elevated. Read More.
• Neutral Sentiment: Small partner integrations announced (merchant/partner deals) — headline noise for partners but limited near‑term impact on PayPal’s core metrics. Read More.
• Negative Sentiment: Earnings miss, weak guidance and CEO change: Q4 EPS and revenue missed estimates and FY‑2026 guidance disappointed; the abrupt CEO transition amplified concerns and drove the initial sharp share decline. Read More.
• Negative Sentiment: Wave of securities‑fraud filings and investor alerts: multiple law firms have announced class actions covering a defined class period, creating legal overhang and potential expense/distraction for management. Read More.
• Negative Sentiment: Insider selling and leadership turnover: sizable insider sales (including a large sale by Suzan Kereere and a CAO sale) shortly after the weak print raise governance/comfort concerns among some investors. Read More.
• Negative Sentiment: Analyst cuts and competitive pressure: several firms trimmed estimates and targets citing branded‑checkout weakness and take‑rate pressure from competitors (Apple, Stripe), which reduces near‑term upside expectations. Read More.

PayPal Trading Down 0.2%

PYPL opened at $41.65 on Monday. The stock has a market capitalization of $38.35 billion, a PE ratio of 7.70, a P/E/G ratio of 1.08 and a beta of 1.43. The company has a debt-to-equity ratio of 0.49, a current ratio of 1.29 and a quick ratio of 1.29. PayPal Holdings, Inc. has a 12-month low of $38.46 and a 12-month high of $79.50. The firm's fifty day moving average price is $53.00 and its 200 day moving average price is $62.10.

PayPal (NASDAQ:PYPL - Get Free Report) last issued its quarterly earnings results on Tuesday, February 3rd. The credit services provider reported $1.23 earnings per share for the quarter, missing analysts' consensus estimates of $1.29 by ($0.06). PayPal had a net margin of 15.77% and a return on equity of 25.42%. The firm had revenue of $8.68 billion during the quarter, compared to the consensus estimate of $8.82 billion. During the same quarter last year, the firm posted $1.19 earnings per share. PayPal's revenue was up 4.0% compared to the same quarter last year. As a group, research analysts expect that PayPal Holdings, Inc. will post 5.03 EPS for the current fiscal year.

PayPal Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Wednesday, March 25th. Stockholders of record on Wednesday, March 4th will be issued a dividend of $0.14 per share. The ex-dividend date of this dividend is Wednesday, March 4th. This represents a $0.56 annualized dividend and a dividend yield of 1.3%. PayPal's dividend payout ratio is 10.35%.

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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