PayPal Holdings, Inc. $PYPL Stake Reduced by Goodnow Investment Group LLC

Key Points

• Goodnow Investment Group cut its PayPal stake by 14.6% in the fourth quarter, though the fund still held 672,559 shares worth about $39.3 million at the end of the period.
• PayPal reported stronger-than-expected Q1 results, with EPS of $1.34 topping estimates and revenue of $8.35 billion exceeding forecasts. Revenue rose 7.2% year over year.
• Insider selling and mixed analyst sentiment remain in focus: executives Suzan Kereere and Frank Keller sold shares in June, while Wall Street’s consensus rating on PYPL is still Hold despite several target-price adjustments.

Goodnow Investment Group LLC lowered its position in shares of PayPal Holdings, Inc. (NASDAQ:PYPL - Free Report) by 14.6% in the 4th quarter, according to its most recent disclosure with the SEC. The fund owned 672,559 shares of the credit services provider's stock after selling 114,573 shares during the period. PayPal accounts for 3.7% of Goodnow Investment Group LLC's portfolio, making the stock its 11th biggest holding. Goodnow Investment Group LLC owned about 0.07% of PayPal worth $39,264,000 at the end of the most recent reporting period.

Several other hedge funds have also recently bought and sold shares of PYPL. Bard Associates Inc. bought a new stake in PayPal during the fourth quarter worth approximately $25,000. Kelleher Financial Advisors purchased a new stake in shares of PayPal in the 3rd quarter valued at approximately $30,000. Caitong International Asset Management Co. Ltd boosted its stake in PayPal by 15,233.3% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 460 shares of the credit services provider's stock worth $27,000 after purchasing an additional 457 shares during the period. Advocate Investing Services LLC acquired a new position in PayPal in the 4th quarter worth approximately $30,000. Finally, Private Wealth Asset Management LLC grew its position in PayPal by 8,700.0% during the 4th quarter. Private Wealth Asset Management LLC now owns 528 shares of the credit services provider's stock worth $31,000 after purchasing an additional 522 shares in the last quarter. 68.32% of the stock is currently owned by institutional investors.

Insider Activity

In other PayPal news, insider Suzan Kereere sold 3,379 shares of the stock in a transaction on Wednesday, June 3rd. The shares were sold at an average price of $42.79, for a total value of $144,587.41. Following the completion of the sale, the insider directly owned 30,983 shares of the company's stock, valued at $1,325,762.57. This represents a 9.83% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Frank Keller sold 4,612 shares of the business's stock in a transaction dated Wednesday, June 3rd. The stock was sold at an average price of $42.54, for a total transaction of $196,194.48. Following the transaction, the insider owned 41,567 shares in the company, valued at approximately $1,768,260.18. The trade was a 9.99% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 20,612 shares of company stock valued at $966,623. 0.63% of the stock is owned by company insiders.

PayPal Stock Performance

Shares of PYPL opened at $42.49 on Tuesday. The company has a market capitalization of $37.48 billion, a PE ratio of 7.97, a price-to-earnings-growth ratio of 1.04 and a beta of 1.34. 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 one year low of $38.46 and a one year high of $79.50. The company's fifty day moving average price is $45.80 and its 200 day moving average price is $49.72.

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. The company had revenue of $8.35 billion during the quarter, compared to analysts' expectations of $8.05 billion. PayPal had a net margin of 15.00% and a return on equity of 25.02%. The business's quarterly revenue was up 7.2% compared to the same quarter last year. During the same period in the prior year, the company earned $1.33 earnings per share. As a group, analysts expect that PayPal Holdings, Inc. will post 5.3 earnings per share for the current year.

PayPal Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, June 25th. Stockholders of record on Thursday, June 4th will be given a $0.14 dividend. This represents a $0.56 annualized dividend and a dividend yield of 1.3%. The ex-dividend date of this dividend is Thursday, June 4th. PayPal's dividend payout ratio is currently 10.51%.

Analysts Set New Price Targets

Several analysts have issued reports on the stock. Bank of America cut their target price on shares of PayPal from $55.00 to $53.00 and set a "neutral" rating on the stock in a research note on Wednesday, May 6th. UBS Group lifted their price target on PayPal from $44.00 to $48.00 and gave the company a "neutral" rating in a report on Wednesday, May 6th. Cantor Fitzgerald upped their price target on PayPal from $42.00 to $54.00 and gave the company a "neutral" rating in a research report on Tuesday, May 5th. Raymond James Financial reissued a "market perform" rating on shares of PayPal in a research note on Monday, February 23rd. Finally, Citigroup raised their price objective on PayPal from $42.00 to $48.00 and gave the stock a "neutral" rating in a research report on Wednesday, April 8th. Eight investment analysts have rated the stock with a Buy rating, thirty-two have assigned a Hold rating and five have issued a Sell rating to the company. According to MarketBeat, the company presently has a consensus rating of "Hold" and an average target price of $55.85.

Key PayPal News

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?

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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