Schroder Investment Management Group Buys 28,685 Shares of PayPal Holdings, Inc. $PYPL

Key Points

• Schroder Investment Management Group raised its PayPal stake by 5.6%, buying 28,685 shares to hold 536,565 shares worth about $37.4 million (≈0.06% of the company) at quarter-end.
• PayPal missed the latest quarter with EPS of $1.23 vs. $1.29 expected and revenue of $8.68 billion vs. $8.82 billion, trades around $45.57 with a market cap near $42 billion, and announced a $0.14 quarterly dividend (1.2% yield).
• Sentiment is mixed-to-negative: multiple securities class actions and executive departures have weighed on the stock, insiders have been net sellers, and several brokers cut price targets leaving an overall consensus rating of "Hold."

Schroder Investment Management Group grew its stake in shares of PayPal Holdings, Inc. (NASDAQ:PYPL - Free Report) by 5.6% during the 3rd quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor owned 536,565 shares of the credit services provider's stock after buying an additional 28,685 shares during the quarter. Schroder Investment Management Group owned 0.06% of PayPal worth $37,388,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors also recently added to or reduced their stakes in the stock. Cloud Capital Management LLC bought a new position in PayPal in the third quarter valued at $30,000. True Wealth Design LLC raised its position in PayPal by 285.3% during the third quarter. True Wealth Design LLC now owns 524 shares of the credit services provider's stock valued at $35,000 after purchasing an additional 388 shares in the last quarter. VSM Wealth Advisory LLC bought a new stake in PayPal during the second quarter worth about $36,000. Dagco Inc. lifted its stake in PayPal by 1,250.0% during the third quarter. Dagco Inc. now owns 540 shares of the credit services provider's stock worth $36,000 after purchasing an additional 500 shares during the last quarter. Finally, Total Investment Management Inc. purchased a new position in shares of PayPal in the 2nd quarter worth about $38,000. 68.32% of the stock is currently owned by hedge funds and other institutional investors.

PayPal Trading Up 1.2%

NASDAQ PYPL opened at $45.57 on Thursday. The firm has a market cap of $41.95 billion, a PE ratio of 8.42, a price-to-earnings-growth ratio of 1.34 and a beta of 1.43. PayPal Holdings, Inc. has a 1-year low of $38.46 and a 1-year high of $79.50. The stock has a 50-day moving average of $49.46 and a 200-day moving average of $60.10. The company has a current ratio of 1.29, a quick ratio of 1.29 and a debt-to-equity ratio of 0.49.

PayPal (NASDAQ:PYPL - Get Free Report) last posted its quarterly earnings results on Tuesday, February 3rd. The credit services provider reported $1.23 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.29 by ($0.06). The company had revenue of $8.68 billion for the quarter, compared to the consensus estimate of $8.82 billion. PayPal had a return on equity of 25.42% and a net margin of 15.77%.PayPal's revenue was up 4.0% compared to the same quarter last year. During the same quarter in the previous year, the business earned $1.19 earnings per share. As a group, sell-side analysts forecast that PayPal Holdings, Inc. will post 5.03 EPS for the current year.

PayPal Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, March 25th. Stockholders of record on Wednesday, March 4th will be issued a $0.14 dividend. The ex-dividend date is Wednesday, March 4th. This represents a $0.56 annualized dividend and a dividend yield of 1.2%. PayPal's dividend payout ratio (DPR) is currently 10.35%.

PayPal News Roundup

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: PayPal was named as one of 85+ partners in Mastercard’s new Crypto Partner Program alongside Binance and Ripple — a distribution and infrastructure tie-up that could accelerate on‑chain payment use cases and PYUSD integrations. Binance, Ripple, PayPal Join Mastercard's 85+ Partner Crypto Initiative
• Positive Sentiment: Short interest fell ~19% in February (to ~41.8M shares, ~4.5% of shares short), reducing immediate short-squeeze risk and lowering one form of selling pressure on the stock.
• Neutral Sentiment: Market note: Zacks flagged that PYPL outperformed while broader markets dipped, a descriptive observation of today’s price action rather than a driver. Paypal (PYPL) Rises As Market Takes a Dip: Key Facts
• Neutral Sentiment: Business update: coverage notes PayPal is pushing PYUSD and related partnerships (freight settlement, merchant payment orchestration, application‑specific stablecoins), which could boost long‑term revenue if adoption follows — but these initiatives coexist with legal and execution risk. PayPal Lawsuits And PYUSD Partnerships Reframe Risk And Growth Prospects
• Neutral Sentiment: Market debate continues on valuation: several op-eds and analyses label PayPal a potential “value trap,” reflecting disagreement among investors on whether current multiples/pricing reflect recoverable fundamentals. PayPal: A Classic Value Trap
• Negative Sentiment: A heavy legal overhang: multiple securities class actions have been filed (and dozens of law firms are soliciting lead plaintiffs), alleging material misstatements about growth/revenue following the Q4/FY2025 miss and CEO departure — the litigation wave and related PR are weighing on sentiment. PayPal Holdings (PYPL) Faces Securities Class Action Amid $9 Billion Market Cap Wipeout, CEO Departure -- Hagens Berman
• Negative Sentiment: Some filings specifically name senior executives and assert individual Section 20(a) liability, increasing potential personal exposure and the seriousness of claims. LEVI & KORSINSKY, LLP: PYPL CEO AND CFO FACE PERSONAL LIABILITY IN SECURITIES ACTION

Analysts Set New Price Targets

Several brokerages have recently commented on PYPL. Royal Bank Of Canada reduced their price objective on PayPal from $91.00 to $59.00 and set an "outperform" rating on the stock in a research report on Wednesday, February 4th. Morgan Stanley dropped their target price on PayPal from $50.00 to $34.00 and set an "underweight" rating for the company in a research report on Wednesday, February 4th. BTIG Research reiterated a "neutral" rating on shares of PayPal in a research report on Tuesday, February 3rd. Dbs Bank upgraded shares of PayPal to a "hold" rating in a research report on Friday, February 6th. Finally, Wells Fargo & Company decreased their price target on shares of PayPal from $67.00 to $48.00 and set an "equal weight" rating on the stock in a research note on Wednesday, February 4th. Eight equities research analysts have rated the stock with a Buy rating, thirty-one have assigned a Hold rating and six have assigned a Sell rating to the company. According to data from MarketBeat, the company has an average rating of "Hold" and an average price target of $59.03.

Insider Buying and Selling

In other PayPal news, insider Suzan Kereere sold 37,613 shares of the firm's stock in a transaction on Wednesday, February 18th. The shares were sold at an average price of $41.49, for a total value of $1,560,563.37. Following the sale, the insider owned 30,983 shares of the company's stock, valued at $1,285,484.67. This trade represents a 54.83% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP Frank Keller sold 29,581 shares of the firm's stock in a transaction on Tuesday, March 3rd. The stock was sold at an average price of $46.02, for a total transaction of $1,361,317.62. Following the completion of the sale, the executive vice president directly owned 51,567 shares in the company, valued at approximately $2,373,113.34. This trade represents a 36.45% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 87,608 shares of company stock valued at $3,831,535 over the last three months. 0.08% of the stock is owned by company 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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