PayPal Holdings, Inc. $PYPL Stock Position Raised by Cwm LLC

Key Points

• Cwm LLC increased its PayPal stake by 58.4% in Q4 to 136,243 shares (an additional 50,220 shares), leaving its holding valued at about $7.95 million.
• Wall Street sentiment is mixed with a consensus “Hold” rating and $56.61 average price target, while notable downgrades (e.g., Mizuho to Neutral with a $50 target) and lowered price forecasts from other firms add near-term bearish pressure.
• PayPal faces a legal overhang from multiple class-action claims and elevated insider selling—87,608 shares (~$3.83M) sold in the last 90 days—which together increase downside and governance risk for investors.

Cwm LLC lifted its holdings in shares of PayPal Holdings, Inc. (NASDAQ:PYPL - Free Report) by 58.4% in the fourth quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund owned 136,243 shares of the credit services provider's stock after buying an additional 50,220 shares during the period. Cwm LLC's holdings in PayPal were worth $7,954,000 at the end of the most recent reporting period.

A number of other institutional investors have also modified their holdings of the business. Maia Wealth LLC grew its position in shares of PayPal by 2.5% during the 3rd quarter. Maia Wealth LLC now owns 6,404 shares of the credit services provider's stock valued at $424,000 after buying an additional 155 shares during the last quarter. Transatlantique Private Wealth LLC increased its position in PayPal by 2.9% in the third quarter. Transatlantique Private Wealth LLC now owns 5,698 shares of the credit services provider's stock worth $382,000 after buying an additional 159 shares during the period. Sound Income Strategies LLC increased its position in PayPal by 16.5% in the third quarter. Sound Income Strategies LLC now owns 1,185 shares of the credit services provider's stock worth $79,000 after buying an additional 168 shares during the period. Martin & Co. Inc. TN increased its position in PayPal by 0.3% in the third quarter. Martin & Co. Inc. TN now owns 56,934 shares of the credit services provider's stock worth $3,818,000 after buying an additional 175 shares during the period. Finally, Harrell Investment Partners LLC increased its position in PayPal by 2.0% in the third quarter. Harrell Investment Partners LLC now owns 9,185 shares of the credit services provider's stock worth $616,000 after buying an additional 184 shares during the period. Institutional investors own 68.32% of the company's stock.

PayPal News Summary

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: Michael Burry reportedly added PYPL to his buys, bringing activist/contrarian interest that can attract buyers and spark short-term momentum if follow-on buying appears. Michael Burry (PYPL) Stock Buys
• Positive Sentiment: Bullish take: a Seeking Alpha piece argues PayPal’s turnaround is still feasible and that the valuation already prices in a lot of bad news — a thesis that could support a value/recovery trade for long-term investors. PayPal: It's Still Not Too Late To Buy The Turnaround
• Neutral Sentiment: Analyst/peer comparisons (Mastercard vs. PayPal) highlight structural differences—Mastercard’s network and services still look stronger—useful context for relative positioning but not an immediate trade catalyst by itself. MA vs. PYPL: Which Digital Payments Stock Has More Room to Run?
• Neutral Sentiment: General market commentary on small-cap opportunities (unrelated to PayPal’s core story) is circulating but has limited direct relevance to PYPL’s near-term price action. 1 Small-Cap Stock with Exciting Potential and 2 We Brush Off
• Negative Sentiment: Mizuho downgraded PYPL to Neutral and cut its price target to $50 (from $60), citing increasing competitive threats (notably Musk’s X Money), recent earnings misses and insider selling—this analyst action is the primary near-term bearish catalyst. Mizuho Downgrades PayPal (PYPL) to Neutral
• Negative Sentiment: Significant legal overhang: multiple law firms (Rosen, Faruqi, Bragar, Bronstein, DJS, etc.) are publicizing class-action claims and April 20 lead-plaintiff deadlines. Potential litigation costs, management distraction and investor uncertainty increase downside risk until the cases resolve. PYPL Deadline Today: Rosen Law Firm

PayPal Price Performance

NASDAQ PYPL opened at $51.46 on Tuesday. PayPal Holdings, Inc. has a 12 month low of $38.46 and a 12 month high of $79.50. The company has a debt-to-equity ratio of 0.49, a current ratio of 1.29 and a quick ratio of 1.29. The firm has a market capitalization of $46.30 billion, a PE ratio of 9.51, a P/E/G ratio of 1.52 and a beta of 1.40. The company's 50 day simple moving average is $45.09 and its 200 day simple moving average is $55.64.

PayPal (NASDAQ:PYPL - Get Free Report) last posted its quarterly earnings data on Tuesday, February 3rd. The credit services provider reported $1.23 EPS for the quarter, missing analysts' consensus estimates of $1.29 by ($0.06). PayPal had a net margin of 15.77% and a return on equity of 25.42%. The company had revenue of $8.68 billion for the quarter, compared to analyst estimates of $8.82 billion. During the same quarter in the prior year, the business earned $1.19 EPS. PayPal's revenue was up 4.0% compared to the same quarter last year. As a group, equities research analysts forecast that PayPal Holdings, Inc. will post 5.32 EPS for the current fiscal year.

PayPal Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, March 25th. Stockholders of record on Wednesday, March 4th were issued a dividend of $0.14 per share. The ex-dividend date was Wednesday, March 4th. This represents a $0.56 dividend on an annualized basis and a dividend yield of 1.1%. PayPal's payout ratio is currently 10.35%.

Wall Street Analyst Weigh In

Several brokerages have weighed in on PYPL. Sanford C. Bernstein reaffirmed a "market perform" rating on shares of PayPal in a research report on Tuesday, February 24th. Morgan Stanley lowered their target price on PayPal from $50.00 to $34.00 and set an "underweight" rating on the stock in a research report on Wednesday, February 4th. Rothschild & Co Redburn cut their target price on PayPal from $50.00 to $32.00 and set a "sell" rating on the stock in a research note on Wednesday, February 11th. BNP Paribas Exane lifted their target price on PayPal from $41.00 to $43.50 and gave the company a "neutral" rating in a research note on Friday, April 10th. Finally, Daiwa Securities Group cut their target price on PayPal from $61.00 to $42.00 and set a "neutral" rating on the stock in a research note on Tuesday, February 10th. Seven equities research analysts have rated the stock with a Buy rating, thirty-two have given a Hold rating and six have issued a Sell rating to the company's stock. Based on data from MarketBeat.com, PayPal presently has a consensus rating of "Hold" and an average price target of $56.61.

Insider Activity at PayPal

In related news, EVP Frank Keller sold 29,581 shares of the company's stock in a transaction that occurred on Tuesday, March 3rd. The shares were sold at an average price of $46.02, for a total value of $1,361,317.62. Following the completion of the sale, the executive vice president owned 51,567 shares in the company, valued at approximately $2,373,113.34. This represents a 36.45% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Suzan Kereere sold 13,515 shares of the stock in a transaction that occurred on Tuesday, March 3rd. The stock was sold at an average price of $46.02, for a total transaction of $621,960.30. Following the completion of the sale, the insider directly owned 30,983 shares of the company's stock, valued at $1,425,837.66. This trade represents a 30.37% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 87,608 shares of company stock worth $3,831,535. 0.63% of the stock is owned by corporate insiders.

About PayPal

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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