PayPal Holdings, Inc. $PYPL Stake Lowered by L2 Asset Management LLC

Key Points

• L2 Asset Management reduced its PayPal stake by 42.9% in the fourth quarter, selling 27,324 shares and leaving it with 36,436 shares valued at about $2.13 million.
• PayPal reported better-than-expected quarterly results, posting EPS of $1.34 versus $1.27 expected and revenue of $8.35 billion versus $8.05 billion expected, with revenue up 7.2% year over year.
• The company also announced a quarterly dividend of $0.14 per share, payable June 25, while analysts currently rate the stock a consensus Hold with an average price target of $55.85.

L2 Asset Management LLC cut its stake in PayPal Holdings, Inc. (NASDAQ:PYPL - Free Report) by 42.9% during the fourth quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 36,436 shares of the credit services provider's stock after selling 27,324 shares during the quarter. L2 Asset Management LLC's holdings in PayPal were worth $2,127,000 as of its most recent filing with the Securities and Exchange Commission.

Other hedge funds have also modified their holdings of the company. Bard Associates Inc. acquired a new position in shares of PayPal in the fourth quarter worth $25,000. Kelleher Financial Advisors acquired a new position in shares of PayPal in the third quarter worth $30,000. Caitong International Asset Management Co. Ltd increased its stake in shares of PayPal by 15,233.3% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 460 shares of the credit services provider's stock worth $27,000 after acquiring an additional 457 shares during the last quarter. Advocate Investing Services LLC acquired a new position in shares of PayPal in the fourth quarter worth $30,000. Finally, Private Wealth Asset Management LLC increased its stake in shares of PayPal by 8,700.0% in the fourth quarter. Private Wealth Asset Management LLC now owns 528 shares of the credit services provider's stock worth $31,000 after acquiring an additional 522 shares during the last quarter. 68.32% of the stock is owned by institutional investors and hedge funds.

PayPal Stock Up 2.3%

PYPL stock opened at $42.49 on Tuesday. 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 52-week low of $38.46 and a 52-week high of $79.50. The company has a 50-day moving average of $45.80 and a two-hundred day moving average of $49.72. The stock has a market capitalization of $37.48 billion, a price-to-earnings ratio of 7.97, a price-to-earnings-growth ratio of 1.04 and a beta of 1.34.

PayPal (NASDAQ:PYPL - Get Free Report) last released its quarterly earnings results on Tuesday, May 5th. The credit services provider reported $1.34 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.27 by $0.07. PayPal had a net margin of 15.00% and a return on equity of 25.02%. The company had revenue of $8.35 billion during the quarter, compared to analysts' expectations of $8.05 billion. During the same period in the prior year, the company earned $1.33 earnings per share. The business's quarterly revenue was up 7.2% compared to the same quarter last year. As a group, equities research analysts anticipate that PayPal Holdings, Inc. will post 5.3 EPS for the current year.

PayPal Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Thursday, June 25th. Shareholders of record on Thursday, June 4th will be issued a dividend of $0.14 per share. This represents a $0.56 dividend on an annualized basis and a yield of 1.3%. The ex-dividend date is Thursday, June 4th. PayPal's dividend payout ratio is 10.51%.

Key Stories Impacting PayPal

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: Michael Burry added to his PayPal bet, which has fueled investor interest and encouraged a rebound in the stock as traders view the move as a potential vote of confidence in the company’s turnaround. PYPL Stock Climbs Overnight: Michael Burry Adds To PayPal Bet, Says 'The Body Has Yet To Show'
• Positive Sentiment: Commentary highlighted PayPal’s low valuation, strong free cash flow generation, and ongoing share repurchases, which support the argument that the stock may be undervalued relative to its earnings power. PayPal Stock (PYPL) Opinions on Michael Burry's Recent Investment
• Positive Sentiment: New platform and checkout integrations, including Venmo’s use in The Knot Worldwide’s wedding registry and broader PayPal-powered commerce partnerships, suggest PayPal is continuing to expand its ecosystem and merchant reach. The Knot Worldwide Announces Integration with Venmo to Deliver Seamless Gifting Experiences for Couples and Guests
• Neutral Sentiment: Several articles focused on PayPal being “trending” and widely discussed by investors, but these pieces were more commentary than fresh business news, so they are adding attention rather than a clear fundamental catalyst. PayPal Holdings, Inc. (PYPL) Is a Trending Stock: Facts to Know Before Betting on It
• Negative Sentiment: Bearish pieces warned that PayPal still trades at a low earnings multiple because of CEO transition uncertainty, slower growth expectations, and ongoing competitive pressure in digital payments, which keeps some investors cautious. PayPal Trades at Less Than 8X Earnings. Is This a Bargain or a Value Trap?

Insider Buying and Selling at PayPal

In other PayPal news, insider Frank Keller sold 4,612 shares of the company's stock in a transaction dated Wednesday, June 3rd. The shares were sold at an average price of $42.54, for a total transaction of $196,194.48. Following the completion of the sale, the insider directly owned 41,567 shares in the company, valued at $1,768,260.18. This represents a 9.99% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Suzan Kereere sold 3,379 shares of the company's stock in a transaction dated Wednesday, June 3rd. The shares were sold at an average price of $42.79, for a total transaction of $144,587.41. Following the sale, the insider owned 30,983 shares of the company's stock, valued at $1,325,762.57. This trade represents a 9.83% 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. Insiders sold 20,612 shares of company stock worth $966,623 over the last ninety days. Company insiders own 0.63% of the company's stock.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently weighed in on PYPL shares. Sanford C. Bernstein reaffirmed a "market perform" rating on shares of PayPal in a research note on Tuesday, February 24th. Zacks Research upgraded shares of PayPal from a "strong sell" rating to a "hold" rating in a report on Friday, April 17th. BNP Paribas Exane upped their price objective on shares of PayPal from $41.00 to $43.50 and gave the stock a "neutral" rating in a report on Friday, April 10th. The Goldman Sachs Group decreased their price objective on shares of PayPal from $41.00 to $40.00 in a report on Wednesday, May 6th. Finally, Citigroup upped their price objective on shares of PayPal from $42.00 to $48.00 and gave the stock a "neutral" rating in a report on Wednesday, April 8th. Eight analysts have rated the stock with a Buy rating, thirty-two have issued a Hold rating and five have assigned a Sell rating to the company. According to MarketBeat.com, PayPal has an average rating of "Hold" and a consensus price target of $55.85.

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.

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