PayPal Holdings, Inc. $PYPL Shares Sold by Edgestream Partners L.P.

Key Points

• Edgestream Partners cut its PayPal stake by 56.9% in the first quarter, selling 49,636 shares and retaining 37,631 shares valued at approximately $1.7 million. Institutional investors and hedge funds collectively own 68.32% of PayPal.
• PayPal’s latest quarterly results exceeded expectations, with adjusted earnings of $1.38 per share versus the $1.28 consensus and revenue of $8.68 billion, up 4.8% year over year.
• Despite a roughly 30% July rally and takeover speculation, analysts maintain a consensus “Hold” rating with a $55.67 price target, while technical indicators warn the stock may be overbought.

Edgestream Partners L.P. lessened its stake in PayPal Holdings, Inc. (NASDAQ:PYPL - Free Report) by 56.9% in the first quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm owned 37,631 shares of the credit services provider's stock after selling 49,636 shares during the quarter. Edgestream Partners L.P.'s holdings in PayPal were worth $1,702,000 at the end of the most recent reporting period.

A number of other institutional investors have also made changes to their positions in PYPL. Brighton Jones LLC increased its stake in PayPal by 15.2% during the 4th quarter. Brighton Jones LLC now owns 6,989 shares of the credit services provider's stock worth $596,000 after buying an additional 924 shares during the period. Revolve Wealth Partners LLC purchased a new position in PayPal in the 4th quarter valued at about $248,000. Sivia Capital Partners LLC grew its stake in shares of PayPal by 41.5% during the second quarter. Sivia Capital Partners LLC now owns 4,470 shares of the credit services provider's stock valued at $332,000 after acquiring an additional 1,310 shares in the last quarter. United Bank grew its stake in shares of PayPal by 40.1% during the second quarter. United Bank now owns 17,388 shares of the credit services provider's stock valued at $1,292,000 after acquiring an additional 4,974 shares in the last quarter. Finally, Federated Hermes Inc. increased its position in shares of PayPal by 17.9% during the second quarter. Federated Hermes Inc. now owns 18,909 shares of the credit services provider's stock worth $1,405,000 after acquiring an additional 2,865 shares during the last quarter. 68.32% of the stock is owned by institutional investors and hedge funds.

Trending Headlines about PayPal

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: PayPal’s recent quarterly results showed adjusted earnings of $1.38 per share versus the $1.28 consensus estimate, while revenue reached approximately $8.68 billion, ahead of expectations and up 4.8% year over year. Investor attention has also focused on progress in Venmo monetization and Braintree expansion. PayPal Stock Opinions on Q2 Earnings and Analyst Downgrade
• Positive Sentiment: Speculation that Stripe and Advent could bid for PayPal continues to support the shares by raising the possibility of an acquisition premium, although no transaction has been confirmed. Market participants are also discussing who else might emerge as a potential bidder. Who Else Could Make a Bid for PayPal?
• Positive Sentiment: PayPal led the financial sector’s July performance with an approximately 30% rally, reflecting improving investor confidence in the company’s turnaround and earnings trajectory. Financial Sector Tops the S&P 500 in July
• Neutral Sentiment: Cantor Fitzgerald raised its PayPal price target from $54 to $60 but maintained a neutral rating. The new target suggests limited additional upside from the current trading level, indicating that valuation has moved closer to the analyst’s expectations.
• Negative Sentiment: Technical analysts warn that the recent rally has pushed PayPal’s relative strength index into overbought territory, increasing the risk of a pause or pullback even as fundamental momentum improves. PayPal Shares Pause as Turnaround Momentum Collides With Overbought RSI
• Negative Sentiment: Investors remain concerned about recession resilience: a comparison with American Express argues that PayPal’s fintech model may be less defensive in an economic downturn. Separate investor discussion also highlighted a Morgan Stanley underweight rating and a lower price target. Which Financial Stock Would Hold Up Better in a Recession?

PayPal Stock Performance

Shares of PYPL stock opened at $57.87 on Tuesday. PayPal Holdings, Inc. has a 12-month low of $38.46 and a 12-month high of $79.21. The company has a debt-to-equity ratio of 0.55, a current ratio of 1.29 and a quick ratio of 1.29. The firm has a market capitalization of $49.51 billion, a price-to-earnings ratio of 10.94, a price-to-earnings-growth ratio of 1.42 and a beta of 1.29. The business has a 50 day simple moving average of $47.30 and a 200 day simple moving average of $47.03.

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

PayPal Dividend Announcement

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

Analysts Set New Price Targets

Several research firms recently issued reports on PYPL. Argus set a $70.00 price target on shares of PayPal in a report on Wednesday, July 29th. Weiss Ratings reissued a "hold (c-)" rating on shares of PayPal in a report on Friday, May 8th. Susquehanna increased their target price on PayPal from $63.00 to $67.00 and gave the stock a "positive" rating in a report on Wednesday, July 29th. Piper Sandler lowered their price target on PayPal from $46.00 to $42.00 and set a "neutral" rating for the company in a report on Monday, June 29th. Finally, Telsey Advisory Group cut PayPal to a "market perform" rating in a research note on Friday, July 24th. Nine research 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 stock currently has a consensus rating of "Hold" and a consensus price target of $55.67.

Insider Transactions at PayPal

In related news, CAO Chris Natali sold 1,337 shares of the firm's stock in a transaction that occurred on 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 sale, the chief accounting officer directly owned 2,216 shares in the company, valued at approximately $128,749.60. This trade represents a 37.63% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Frank Keller sold 732 shares of the company's stock in a transaction on Wednesday, July 29th. The shares were sold at an average price of $58.10, for a total value of $42,529.20. Following the sale, the insider directly owned 41,567 shares of the company's stock, valued at approximately $2,415,042.70. This represents a 1.73% 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 10,612 shares of company stock valued at $484,534. Corporate insiders own 0.63% of the company's stock.

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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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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