Ameriprise Financial Inc. Trims Stake in PayPal Holdings, Inc. $PYPL

Key Points

• Ameriprise Financial Inc. has reduced its holdings in PayPal Holdings, Inc. by 17.1%, now owning approximately 1.51 million shares valued at $98.5 million.
• Multiple analysts have provided ratings for PayPal, with a consensus rating of “Hold” and an average price target of $85.00, while some ratings include an "outperform" from Royal Bank Of Canada.
• PayPal reported earnings of $1.40 per share, exceeding analysts’ estimates, along with a revenue of $8.29 billion for its most recent quarter.

Ameriprise Financial Inc. cut its stake in PayPal Holdings, Inc. (NASDAQ:PYPL - Free Report) by 17.1% in the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 1,509,924 shares of the credit services provider's stock after selling 311,464 shares during the quarter. Ameriprise Financial Inc. owned approximately 0.16% of PayPal worth $98,513,000 at the end of the most recent reporting period.

Other hedge funds also recently bought and sold shares of the company. Vanguard Group Inc. raised its position in PayPal by 0.3% during the first quarter. Vanguard Group Inc. now owns 86,221,849 shares of the credit services provider's stock worth $5,625,976,000 after acquiring an additional 276,339 shares during the period. Deutsche Bank AG lifted its position in PayPal by 19.1% during the first quarter. Deutsche Bank AG now owns 11,238,218 shares of the credit services provider's stock worth $733,294,000 after buying an additional 1,798,330 shares in the last quarter. Northern Trust Corp grew its holdings in shares of PayPal by 19.0% in the fourth quarter. Northern Trust Corp now owns 10,462,251 shares of the credit services provider's stock valued at $892,953,000 after purchasing an additional 1,669,908 shares during the period. Invesco Ltd. grew its stake in shares of PayPal by 14.9% in the 1st quarter. Invesco Ltd. now owns 9,516,070 shares of the credit services provider's stock valued at $620,924,000 after buying an additional 1,232,155 shares during the period. Finally, Goldman Sachs Group Inc. lifted its holdings in PayPal by 44.6% in the first quarter. Goldman Sachs Group Inc. now owns 8,559,376 shares of the credit services provider's stock valued at $558,499,000 after acquiring an additional 2,638,815 shares during the last quarter. Hedge funds and other institutional investors own 68.32% of the company's stock.

Insider Activity at PayPal

In related news, insider Suzan Kereere sold 4,162 shares of the company's stock in a transaction that occurred on Tuesday, August 19th. The stock was sold at an average price of $69.39, for a total value of $288,801.18. Following the sale, the insider owned 48,483 shares in the company, valued at $3,364,235.37. This represents a 7.91% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, CAO Chris Natali sold 7,102 shares of PayPal stock in a transaction on Thursday, July 31st. The stock was sold at an average price of $69.35, for a total value of $492,523.70. The disclosure for this sale can be found here. Insiders have sold 26,898 shares of company stock worth $1,909,636 over the last three months. 0.08% of the stock is currently owned by company insiders.

Analysts Set New Price Targets

A number of equities research analysts have commented on PYPL shares. Royal Bank Of Canada restated an "outperform" rating and issued a $88.00 target price on shares of PayPal in a research report on Thursday, June 26th. Truist Financial initiated coverage on shares of PayPal in a research report on Monday, June 2nd. They issued a "sell" rating and a $68.00 target price on the stock. Barclays reiterated an "overweight" rating on shares of PayPal in a research report on Tuesday, July 29th. BMO Capital Markets restated a "market perform" rating on shares of PayPal in a report on Tuesday, July 29th. Finally, Morgan Stanley reaffirmed a "positive" rating on shares of PayPal in a research report on Wednesday, July 30th. Seventeen equities research analysts have rated the stock with a Buy rating, fourteen have assigned a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat.com, PayPal has an average rating of "Hold" and a consensus target price of $85.00.

PayPal Stock Performance

NASDAQ:PYPL traded up $0.01 during mid-day trading on Friday, reaching $70.07. The stock had a trading volume of 3,178,710 shares, compared to its average volume of 11,017,127. PayPal Holdings, Inc. has a twelve month low of $55.85 and a twelve month high of $93.66. The business has a 50 day simple moving average of $72.05 and a 200 day simple moving average of $70.08. The firm has a market capitalization of $66.94 billion, a price-to-earnings ratio of 14.98, a PEG ratio of 1.08 and a beta of 1.42. The company has a debt-to-equity ratio of 0.56, a quick ratio of 1.33 and a current ratio of 1.33.

PayPal (NASDAQ:PYPL - Get Free Report) last issued its earnings results on Tuesday, July 29th. The credit services provider reported $1.40 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.30 by $0.10. PayPal had a return on equity of 25.35% and a net margin of 14.49%.The business had revenue of $8.29 billion during the quarter, compared to the consensus estimate of $8.08 billion. During the same period in the prior year, the business posted $1.19 EPS. PayPal has set its Q3 2025 guidance at 1.180-1.220 EPS. FY 2025 guidance at 5.150-5.300 EPS. On average, analysts expect that PayPal Holdings, Inc. will post 5.03 earnings per share for the current fiscal year.

About PayPal

PayPal Holdings, Inc operates a technology platform that enables digital payments on behalf of merchants and consumers worldwide. It operates a two-sided network at scale that connects merchants and consumers that enables its customers to connect, transact, and send and receive payments through online and in person, as well as transfer and withdraw funds using various funding sources, such as bank accounts, PayPal or Venmo account balance, PayPal and Venmo branded credit products comprising its installment products, credit and debit cards, and cryptocurrencies, as well as other stored value products, including gift cards and eligible rewards.