S&CO Inc. Has $20.14 Million Stake in PayPal Holdings, Inc. $PYPL

Key Points

• S&CO Inc. boosted its PayPal stake by 28.8% in the first quarter, buying an additional 99,615 shares and bringing its holdings to 445,270 shares worth about $20.14 million.
• PayPal’s financial results came in ahead of expectations, with first-quarter EPS of $1.34 versus $1.27 expected and revenue of $8.35 billion, up 7.2% year over year.
• Analyst sentiment remains mixed, but takeover chatter is supporting the stock, as reports that Stripe and Advent’s $53 billion bid may be too low have raised hopes for a higher valuation even as PayPal trades with a “Hold” consensus rating.

S&CO Inc. increased its stake in shares of PayPal Holdings, Inc. (NASDAQ:PYPL - Free Report) by 28.8% during the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 445,270 shares of the credit services provider's stock after purchasing an additional 99,615 shares during the quarter. PayPal comprises about 1.2% of S&CO Inc.'s portfolio, making the stock its 22nd biggest position. S&CO Inc.'s holdings in PayPal were worth $20,139,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other hedge funds and other institutional investors have also modified their holdings of PYPL. Maia Wealth LLC boosted its position in PayPal by 2.5% in 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. GeoWealth Management LLC raised its position in shares of PayPal by 6.2% during the third quarter. GeoWealth Management LLC now owns 3,214 shares of the credit services provider's stock worth $216,000 after acquiring an additional 188 shares during the last quarter. Harrell Investment Partners LLC raised its position in shares of PayPal by 2.1% during the fourth quarter. Harrell Investment Partners LLC now owns 9,374 shares of the credit services provider's stock worth $547,000 after acquiring an additional 189 shares during the last quarter. Formidable Asset Management LLC lifted its stake in shares of PayPal by 0.8% during the first quarter. Formidable Asset Management LLC now owns 25,937 shares of the credit services provider's stock valued at $1,173,000 after acquiring an additional 205 shares during the period. Finally, KPP Advisory Services LLC lifted its stake in shares of PayPal by 3.3% during the first quarter. KPP Advisory Services LLC now owns 6,625 shares of the credit services provider's stock valued at $300,000 after acquiring an additional 214 shares during the period. Institutional investors and hedge funds own 68.32% of the company's stock.

Insider Activity

In related news, CAO Chris Natali sold 1,337 shares of the business's stock in a transaction that occurred on Wednesday, April 29th. The shares were sold at an average price of $49.46, for a total transaction of $66,128.02. Following the completion of the transaction, the chief accounting officer owned 1,586 shares in the company, valued at approximately $78,443.56. The trade was a 45.74% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 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 that occurred on Wednesday, June 3rd. The shares were sold at an average price of $42.79, for a total transaction 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. The trade was a 9.83% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 20,612 shares of company stock valued at $966,623 in the last ninety days. 0.63% of the stock is owned by insiders.

Analyst Ratings Changes

Several equities analysts recently issued reports on PYPL shares. Loop Capital initiated coverage on PayPal in a report on Tuesday, March 31st. They issued a "hold" rating and a $46.00 price target on the stock. Clear Str upgraded shares of PayPal to a "hold" rating in a research report on Thursday. BTIG Research reaffirmed a "neutral" rating on shares of PayPal in a research note on Wednesday. Royal Bank Of Canada reaffirmed an "outperform" rating and issued a $59.00 target price on shares of PayPal in a research note on Wednesday, May 6th. Finally, UBS Group lifted their price target on shares of PayPal from $44.00 to $48.00 and gave the stock a "neutral" rating in a research report on Wednesday, May 6th. Seven research analysts have rated the stock with a Buy rating, thirty-four have assigned a Hold rating and five have assigned a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of "Hold" and an average target price of $54.61.

PayPal Stock Down 0.3%

NASDAQ:PYPL opened at $56.56 on Friday. The company has a quick ratio of 1.26, a current ratio of 1.26 and a debt-to-equity ratio of 0.47. PayPal Holdings, Inc. has a 12-month low of $38.46 and a 12-month high of $79.50. The stock's fifty day simple moving average is $44.60 and its 200-day simple moving average is $47.23. The firm has a market capitalization of $49.89 billion, a P/E ratio of 10.61, a P/E/G ratio of 1.41 and a beta of 1.33.

PayPal (NASDAQ:PYPL - Get Free Report) last released its quarterly earnings data on Tuesday, May 5th. The credit services provider reported $1.34 EPS for the quarter, beating analysts' consensus estimates of $1.27 by $0.07. PayPal had a return on equity of 25.02% and a net margin of 15.00%.The business had revenue of $8.35 billion during the quarter, compared to the consensus estimate of $8.05 billion. During the same quarter in the prior year, the company posted $1.33 earnings per share. The firm's revenue was up 7.2% on a year-over-year basis. Equities research analysts expect that PayPal Holdings, Inc. will post 5.32 earnings per share for the current year.

PayPal Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, June 25th. Stockholders of record on Thursday, June 4th were paid a $0.14 dividend. The ex-dividend date of this dividend was Thursday, June 4th. This represents a $0.56 dividend on an annualized basis and a dividend yield of 1.0%. PayPal's dividend payout ratio is 10.51%.

PayPal News Summary

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: The reported takeover interest from Stripe and Advent has fueled speculation that PayPal could be worth more than the current offer, with several analysts and investors arguing the bid is too low. Reuters: PayPal board sees Stripe-Advent offer as inadequate, sources say
• Positive Sentiment: Some market commentary suggests the bid could force a higher valuation for PYPL, potentially supporting further upside if negotiations continue or a competing offer emerges. Yahoo Finance: Cantor sees potential for higher PayPal offer as analysis suggests $70/share value
• Neutral Sentiment: PayPal’s board has reportedly not formally responded yet, so the deal is still early-stage and subject to negotiation, financing, and regulatory risk. Yahoo Finance weekly review
• Negative Sentiment: The board is said to view the $53 billion proposal as inadequate, which could mean a longer path to any deal or no deal at all if a higher price does not materialize. PYMNTS: PayPal Board Calls $53 Billion Stripe-Advent Bid Inadequate

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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