Vanguard Group Inc. Has $5.69 Billion Stock Holdings in PayPal Holdings, Inc. $PYPL

Key Points

• Vanguard reduced its PayPal stake by 1.5% in Q3 to 84,842,465 shares, representing a 9.07% ownership position worth roughly $5.69 billion.
• PayPal missed Q4 estimates (EPS $1.23 vs. $1.29 expected; revenue $8.68B vs. $8.82B), the stock trades near $40.81 with a low valuation (P/E ~7.5), and the company announced a quarterly dividend of $0.14 (annualized yield ~1.4%).
• Multiple class‑action suits and investigations allege PayPal misled investors—raising potential legal and settlement risk—while several analysts have cut targets and the consensus rating remains Hold.

Vanguard Group Inc. reduced its holdings in shares of PayPal Holdings, Inc. (NASDAQ:PYPL - Free Report) by 1.5% in the third quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 84,842,465 shares of the credit services provider's stock after selling 1,303,863 shares during the quarter. Vanguard Group Inc. owned 9.07% of PayPal worth $5,689,536,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors also recently made changes to their positions in PYPL. MUFG Securities EMEA plc raised its stake in shares of PayPal by 100.4% in the second quarter. MUFG Securities EMEA plc now owns 385 shares of the credit services provider's stock worth $29,000 after purchasing an additional 87,524 shares during the last quarter. Cloud Capital Management LLC bought a new stake in PayPal during the third quarter worth $30,000. VSM Wealth Advisory LLC bought a new stake in PayPal during the second quarter worth $36,000. Total Investment Management Inc. purchased a new stake in PayPal in the 2nd quarter valued at $38,000. Finally, True Wealth Design LLC lifted its stake in PayPal by 285.3% during the 3rd quarter. True Wealth Design LLC now owns 524 shares of the credit services provider's stock valued at $35,000 after acquiring an additional 388 shares in the last quarter. 68.32% of the stock is owned by institutional investors.

PayPal Stock Up 1.3%

Shares of NASDAQ PYPL opened at $40.81 on Wednesday. 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 stock has a market capitalization of $37.57 billion, a PE ratio of 7.54, a P/E/G ratio of 1.04 and a beta of 1.43. PayPal Holdings, Inc. has a one year low of $38.46 and a one year high of $79.50. The business's fifty day moving average price is $54.20 and its 200-day moving average price is $62.67.

PayPal (NASDAQ:PYPL - Get Free Report) last announced its quarterly earnings data on Tuesday, February 3rd. The credit services provider reported $1.23 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.29 by ($0.06). The firm had revenue of $8.68 billion during the quarter, compared to the consensus estimate of $8.82 billion. PayPal had a net margin of 15.77% and a return on equity of 25.42%. The company's revenue was up 4.0% on a year-over-year basis. During the same quarter in the prior year, the firm posted $1.19 earnings per share. On average, equities research analysts anticipate that PayPal Holdings, Inc. will post 5.03 EPS for the current year.

PayPal Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, March 25th. Investors of record on Wednesday, March 4th will be issued a $0.14 dividend. The ex-dividend date of this dividend is Wednesday, March 4th. This represents a $0.56 annualized dividend and a yield of 1.4%. PayPal's dividend payout ratio (DPR) is 10.35%.

Analysts Set New Price Targets

Several research firms have recently issued reports on PYPL. Truist Financial reduced their target price on shares of PayPal from $58.00 to $39.00 and set a "sell" rating for the company in a research note on Tuesday, February 10th. UBS Group reaffirmed a "neutral" rating and issued a $44.00 price objective on shares of PayPal in a research report on Wednesday, February 4th. Daiwa Securities Group dropped their target price on shares of PayPal from $61.00 to $42.00 and set a "neutral" rating on the stock in a research report on Tuesday, February 10th. Sanford C. Bernstein cut their target price on PayPal from $62.00 to $45.00 and set a "market perform" rating on the stock in a research note on Monday, February 9th. Finally, HSBC downgraded PayPal from a "buy" rating to a "hold" rating and set a $47.00 price target for the company. in a research report on Wednesday, February 4th. Nine equities research analysts have rated the stock with a Buy rating, thirty have given a Hold rating and five have issued a Sell rating to the stock. According to data from MarketBeat, PayPal has a consensus rating of "Hold" and a consensus target price of $61.03.

Insiders Place Their Bets

In other PayPal news, EVP Frank Keller sold 3,478 shares of the stock in a transaction on Friday, February 6th. The stock was sold at an average price of $40.20, for a total transaction of $139,815.60. Following the sale, the executive vice president owned 51,567 shares in the company, valued at $2,072,993.40. This represents a 6.32% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Corporate insiders own 0.08% of the company's stock.

More PayPal News

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: Analyst bullish case — a Seeking Alpha piece argues PayPal remains a “buy” at a reduced target, citing diversification across Venmo, PSP, Omni and BNPL, and very low valuation multiples (P/E ~7.5) that may offer downside protection and upside if execution stabilizes. PayPal: Despite Uncertainty, Stock Remains A Buy
• Neutral Sentiment: Partner integration news — OLB Group announced a global partner agreement to integrate PayPal checkout/wallet into its gateway; this expands distribution but is more meaningful for OLB than for PayPal’s core scale. OLB Group Stock Skyrockets On PayPal Partnership
• Neutral Sentiment: Mixed fundamentals read — Zacks highlights Q4 transaction revenue growth but a lower take rate and a flat 2026 total payment volume outlook, which clouds near‑term growth expectations even as some margins/metrics remain attractive. PYPL's Transaction Revenues: Will it Pave the Way or Hinder Growth?
• Neutral Sentiment: Comparative view — The Motley Fool piece frames PayPal as deep‑value but higher risk versus faster‑growth fintech peers; useful context for investors weighing valuation vs. execution risk. Better Fintech Stock: PayPal vs. SoFi
• Negative Sentiment: Multiple class‑action and investigation notices — Several law firms (Levi & Korsinsky, Pomerantz, Robbins LLP, Howard G. Smith, RGRD Law and others) have filed or opened investigations and shareholder alerts alleging PayPal misled investors about revenue/growth projections for the Feb 25, 2025–Feb 2, 2026 class period; Levi & Korsinsky set an April 20, 2026 lead‑plaintiff deadline. This litigation wave raises potential legal costs, distraction, and settlement risk that can pressure the stock. SHAREHOLDER ALERT-Levi-Korsinsky-LLP-Notifies-Investors-It-Has-Filed-a-Complaint... INVESTOR ALERT: PayPal Holdings, Inc. Investors with Substantial Losses Have Opportunity to Lead the PayPal Class Action Lawsuit – RGRD Law

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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