Renaissance Technologies LLC Buys Shares of 193,200 PayPal Holdings, Inc. $PYPL

Key Points

• Renaissance Technologies initiated a PayPal position by purchasing 193,200 shares valued at approximately $8.7 million. Institutional investors and hedge funds collectively own 68.32% of PayPal’s outstanding shares.
• PayPal exceeded quarterly expectations, reporting earnings of $1.38 per share versus the $1.28 consensus and revenue of $8.68 billion versus $8.47 billion expected. Revenue increased 4.8% year over year, while analysts expect full-year EPS of $5.35.
• Despite improved results and some analyst price-target increases, the broader analyst consensus remains “Hold”, with a consensus target of $55.50. PayPal also declared a quarterly dividend of $0.14 per share, representing a 1.0% annualized yield.

Renaissance Technologies LLC purchased a new position in PayPal Holdings, Inc. (NASDAQ:PYPL - Free Report) during the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund purchased 193,200 shares of the credit services provider's stock, valued at approximately $8,738,000.

A number of other large investors have also made changes to their positions in PYPL. Vanguard Group Inc. boosted its holdings in PayPal by 6.5% in the fourth quarter. Vanguard Group Inc. now owns 90,376,927 shares of the credit services provider's stock worth $5,276,205,000 after acquiring an additional 5,534,462 shares in the last quarter. Rule One Partners LLC acquired a new position in shares of PayPal during the fourth quarter valued at about $2,043,000. Step Capital Management Pte. Ltd. acquired a new position in shares of PayPal during the fourth quarter valued at about $6,130,000. Swiss National Bank raised its position in shares of PayPal by 4.9% in the 1st quarter. Swiss National Bank now owns 2,608,600 shares of the credit services provider's stock valued at $117,987,000 after purchasing an additional 121,400 shares during the last quarter. Finally, Easterly Investment Partners LLC boosted its stake in PayPal by 705.2% in the 4th quarter. Easterly Investment Partners LLC now owns 100,651 shares of the credit services provider's stock worth $5,876,000 after purchasing an additional 88,151 shares in the last quarter. 68.32% of the stock is owned by institutional investors and hedge funds.

PayPal Stock Performance

Shares of NASDAQ PYPL opened at $57.21 on Monday. The company has a current ratio of 1.29, a quick ratio of 1.29 and a debt-to-equity ratio of 0.55. PayPal Holdings, Inc. has a 12 month low of $38.46 and a 12 month high of $79.21. The company has a 50 day simple moving average of $47.03 and a two-hundred day simple moving average of $47.02. The stock has a market cap of $48.94 billion, a price-to-earnings ratio of 10.81, a PEG ratio of 1.42 and a beta of 1.33.

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

PayPal Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, September 25th. Shareholders of record on Friday, September 4th will be issued a $0.14 dividend. This represents a $0.56 annualized dividend and a yield of 1.0%. The ex-dividend date of this dividend is Friday, September 4th. PayPal's dividend payout ratio is presently 10.59%.

Insider Buying and Selling at PayPal

In other PayPal news, insider Frank Keller sold 732 shares of the stock in a transaction dated Wednesday, July 29th. The stock was sold at an average price of $58.10, for a total transaction 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 trade represents a 1.73% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Chris Natali sold 1,337 shares of PayPal stock in a transaction dated Wednesday, July 29th. The shares were sold at an average price of $58.10, for a total value of $77,679.70. Following the transaction, the chief accounting officer owned 2,216 shares of the company's stock, valued at $128,749.60. The trade was a 37.63% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 10,612 shares of company stock valued at $484,534. 0.63% of the stock is owned by insiders.

Trending Headlines about PayPal

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: PayPal’s second-quarter results exceeded expectations, with adjusted earnings per share of $1.38 versus the $1.28 consensus and revenue of $8.68 billion versus $8.47 billion expected. Management also raised its full-year outlook, citing improving branded checkout, Venmo expansion and cost savings. PayPal Shares Pause as Raised Guidance Validates Turnaround Narrative
• Positive Sentiment: Several analysts raised their price targets following the earnings report, including JPMorgan, TD Cowen, Citigroup and Keefe, Bruyette & Woods. The targets—ranging from the mid-$50s to $70—suggest some analysts see additional upside if PayPal sustains its operational improvements. JPMorgan Analyst Says PayPal Stock Could Rise
• Positive Sentiment: Value-focused commentary highlights PYPL’s relatively low earnings multiple, arguing that the valuation could provide support if the company converts its stronger guidance into consistent growth. PayPal: A Steal At Less Than 10x Earnings
• Neutral Sentiment: Analyst opinion remains mixed. Canaccord Genuity maintained a hold rating, while Wells Fargo increased its target to $56 but kept an equal-weight rating. The broader brokerage consensus remains “hold,” reflecting improved results but limited confidence in PayPal’s longer-term growth trajectory. Canaccord Gives PayPal a Hold Rating
• Neutral Sentiment: Speculation about takeover interest, including a reported bid involving Stripe and Advent International, could support valuation, but no transaction is confirmed and investors remain focused on PayPal’s standalone turnaround. Is Takeout Target PayPal a Buy?
• Negative Sentiment: Bearish analysis says PayPal’s substantial share-repurchase program has not translated into sustained stock-price gains, underscoring skepticism about capital allocation and the company’s growth prospects. PayPal’s $17 Billion Bet Against Wall Street
• Negative Sentiment: Investors continue to monitor margin pressure, branded-checkout execution and PayPal’s slower growth relative to major payments peers. Two insiders also sold shares under pre-arranged Rule 10b5-1 plans; the sales are relatively small but may add modest near-term caution. PayPal Insider Selling

Analysts Set New Price Targets

PYPL has been the topic of a number of recent analyst reports. Royal Bank Of Canada upped their price target on shares of PayPal from $59.00 to $65.00 and gave the company an "outperform" rating in a research note on Wednesday. Morgan Stanley set a $45.00 price objective on shares of PayPal in a research note on Wednesday. BMO Capital Markets assumed coverage on shares of PayPal in a report on Tuesday, April 21st. They set a "market perform" rating and a $52.00 price objective on the stock. Clear Str raised PayPal to a "hold" rating in a research report on Thursday, July 16th. Finally, Susquehanna raised their target price on PayPal from $63.00 to $67.00 and gave the stock a "positive" rating in a research note on Wednesday. Nine equities research analysts have rated the stock with a Buy rating, thirty-four have issued a Hold rating and four have issued a Sell rating to the stock. Based on data from MarketBeat.com, PayPal has an average rating of "Hold" and a consensus target price of $55.50.

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.

Want to see what other hedge funds are holding PYPL? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for PayPal Holdings, Inc. (NASDAQ:PYPL - Free Report).

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.