PayPal Holdings, Inc. $PYPL Shares Purchased by Saudi Central Bank

Key Points

• Saudi Central Bank increased its PayPal stake by 2.7% in the second quarter, adding 27,019 shares to hold 1.01 million shares worth approximately $43.8 million. Institutional investors collectively own 68.32% of PayPal.
• Analysts maintain a cautious outlook, with a consensus “Hold” rating and an average price target of $56.03. PayPal recently exceeded quarterly earnings and revenue estimates, reporting $1.38 in EPS and $8.68 billion in revenue.
• PayPal announced a quarterly dividend of $0.14 per share, equivalent to a 1.0% annual yield, while company insiders sold 6,231 shares worth $373,924 over the past 90 days.

Saudi Central Bank raised its holdings in PayPal Holdings, Inc. (NASDAQ:PYPL - Free Report) by 2.7% during the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 1,013,623 shares of the credit services provider's stock after buying an additional 27,019 shares during the period. Saudi Central Bank owned about 0.12% of PayPal worth $43,768,000 as of its most recent SEC filing.

Other institutional investors also recently bought and sold shares of the company. Rule One Partners LLC purchased a new stake in shares of PayPal in the 4th quarter valued at about $2,043,000. Mitsubishi UFJ Asset Management Co. Ltd. purchased a new position in PayPal during the 2nd quarter worth approximately $97,372,000. S&CO Inc. purchased a new position in PayPal during the 2nd quarter worth approximately $18,827,000. Swiss National Bank increased its position in PayPal by 4.9% during 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 increased its position in PayPal by 705.2% during 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. 68.32% of the stock is owned by hedge funds and other institutional investors.

Insider Transactions at PayPal

In other PayPal news, insider Suzan Kereere sold 4,162 shares of the company's stock in a transaction dated Tuesday, August 18th. The shares were sold at an average price of $60.96, for a total transaction of $253,715.52. Following the transaction, the insider directly owned 30,983 shares in the company, valued at approximately $1,888,723.68. This represents a 11.84% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Chris Natali sold 1,337 shares of the stock in a transaction dated Wednesday, July 29th. The shares were sold at an average price of $58.10, for a total transaction of $77,679.70. Following the completion of the transaction, the chief accounting officer directly owned 2,216 shares of the company's stock, valued at approximately $128,749.60. This trade represents a 37.63% 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 have sold a total of 6,231 shares of company stock valued at $373,924 in the last ninety days. 0.63% of the stock is currently owned by company insiders.

Analyst Upgrades and Downgrades

Several equities research analysts have recently weighed in on the company. Canaccord Genuity Group reissued a "hold" rating and issued a $55.00 price objective on shares of PayPal in a report on Wednesday, July 29th. Deutsche Bank Aktiengesellschaft reaffirmed a "hold" rating and issued a $45.00 target price on shares of PayPal in a report on Wednesday, July 29th. William Blair reiterated a "market perform" rating on shares of PayPal in a research report on Wednesday, July 15th. UBS Group set a $45.00 price target on shares of PayPal in a research note on Wednesday, July 29th. Finally, The Goldman Sachs Group set a $50.00 price objective on shares of PayPal in a research report on Tuesday, July 28th. Nine analysts have rated the stock with a Buy rating, thirty-four have issued a Hold rating and four have issued a Sell rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average price target of $56.03.

Key PayPal News

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: Renewed takeover speculation, including reports of possible interest from Stripe and discussion of a potential bid near $50 billion, has provided support by raising the possibility of a premium transaction. The reports remain unconfirmed. PayPal Stock Jumps on Fresh Takeover Speculation
• Positive Sentiment: PayPal’s buy-now-pay-later, credit and debit products are expanding its financial-services offering and could increase customer engagement, transaction volume and revenue growth. PayPal’s BNPL and Credit Growth
• Neutral Sentiment: The company is approaching an ex-dividend date, while its low earnings valuation may attract value-oriented investors. However, valuation support has not fully offset concerns about growth and execution. PayPal stock gains ahead of ex-dividend date
• Negative Sentiment: PayPal reportedly paused the proposed sale of its venture-capital portfolio after potential buyers offered substantially less than expected. The decision reduces near-term proceeds from a noncore-asset sale and suggests difficult market conditions for the portfolio. PayPal pauses venture portfolio sale
• Negative Sentiment: PayPal is eliminating 251 positions at its San Jose headquarters and has also cut jobs in India and Ireland as part of its multiyear restructuring. While the reductions could lower costs over time, the repeated layoffs highlight ongoing operational pressure and uncertainty about the turnaround. PayPal adds another round of layoffs

PayPal Price Performance

Shares of PYPL opened at $54.96 on Friday. The company has a current ratio of 1.29, a quick ratio of 1.29 and a debt-to-equity ratio of 0.55. The stock's 50 day moving average is $55.05 and its two-hundred day moving average is $48.59. PayPal Holdings, Inc. has a twelve month low of $38.46 and a twelve month high of $79.21. The firm has a market capitalization of $47.02 billion, a PE ratio of 10.39, a P/E/G ratio of 1.17 and a beta of 1.28.

PayPal (NASDAQ:PYPL - Get Free Report) last issued its earnings results on Tuesday, July 28th. The credit services provider reported $1.38 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.28 by $0.10. PayPal had a return on equity of 24.39% and a net margin of 14.36%.The business had revenue of $8.68 billion during the quarter, compared to the consensus estimate of $8.47 billion. During the same period in the prior year, the business posted $1.40 EPS. The company's revenue for the quarter was up 4.8% on a year-over-year basis. Research analysts anticipate that PayPal Holdings, Inc. will post 5.38 earnings per share for the current year.

PayPal Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, September 25th. Shareholders of record on Friday, September 4th will be given a dividend of $0.14 per share. This represents a $0.56 annualized dividend and a dividend yield of 1.0%. The ex-dividend date is Friday, September 4th. PayPal's payout ratio is presently 10.59%.

PayPal Company 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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