Varma Mutual Pension Insurance Co Buys New Stake in PayPal Holdings, Inc. $PYPL

Key Points

• Varma Mutual Pension Insurance Co. bought 234,629 PayPal shares during the second quarter, valued at approximately $10.1 million. Institutional investors collectively own 68.32% of PayPal.
• PayPal reported quarterly earnings of $1.38 per share, exceeding estimates of $1.28, while revenue reached $8.68 billion, up 4.8% year over year. The company also declared a quarterly dividend of $0.14 per share, representing a 0.9% yield.
• Analysts maintain a consensus “Hold” rating with an average price target of $56.28, below the reported share price of $61.55. PayPal insiders sold 14,774 shares worth $738,249 over the past three months, primarily under pre-arranged trading plans.

Varma Mutual Pension Insurance Co bought a new stake in shares of PayPal Holdings, Inc. (NASDAQ:PYPL - Free Report) during the 2nd quarter, according to the company in its most recent disclosure with the SEC. The fund bought 234,629 shares of the credit services provider's stock, valued at approximately $10,131,000.

Several other institutional investors and hedge funds also recently modified their holdings of the business. Brighton Jones LLC lifted its position in PayPal by 15.2% in the fourth quarter. Brighton Jones LLC now owns 6,989 shares of the credit services provider's stock worth $596,000 after purchasing an additional 924 shares during the period. Revolve Wealth Partners LLC acquired a new stake in shares of PayPal in the fourth quarter valued at $248,000. Sivia Capital Partners LLC grew its holdings in PayPal by 41.5% during the second quarter. Sivia Capital Partners LLC now owns 4,470 shares of the credit services provider's stock worth $332,000 after acquiring an additional 1,310 shares during the period. United Bank raised its position in PayPal by 40.1% in the second quarter. United Bank now owns 17,388 shares of the credit services provider's stock worth $1,292,000 after acquiring an additional 4,974 shares in the last quarter. Finally, Federated Hermes Inc. raised its holdings in shares of PayPal by 17.9% in the 2nd quarter. Federated Hermes Inc. now owns 18,909 shares of the credit services provider's stock worth $1,405,000 after purchasing an additional 2,865 shares in the last quarter. Institutional investors own 68.32% of the company's stock.

Insider Transactions at PayPal

In related news, CAO Chris Natali sold 1,337 shares of the firm's stock in a transaction that occurred on Wednesday, July 29th. The shares were sold at an average price of $58.10, for a total transaction of $77,679.70. Following the completion of the sale, the chief accounting officer directly owned 2,216 shares in the company, valued at approximately $128,749.60. This trade represents a 37.63% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Frank Keller sold 732 shares of the business's stock in a transaction that occurred on Wednesday, July 29th. The shares were sold at an average price of $58.10, for a total transaction of $42,529.20. Following the transaction, the insider directly owned 41,567 shares in the company, valued at $2,415,042.70. The trade was a 1.73% decrease in their ownership of the stock. 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 14,774 shares of company stock valued at $738,249 over the last three months. 0.63% of the stock is owned by corporate insiders.

PayPal Stock Performance

Shares of PayPal stock opened at $61.55 on Monday. PayPal Holdings, Inc. has a 12 month low of $38.46 and a 12 month high of $79.21. The company has a quick ratio of 1.29, a current ratio of 1.29 and a debt-to-equity ratio of 0.55. The stock has a market cap of $52.65 billion, a PE ratio of 11.64, a price-to-earnings-growth ratio of 1.50 and a beta of 1.30. The business has a fifty day simple moving average of $52.13 and a 200-day simple moving average of $47.48.

PayPal (NASDAQ:PYPL - Get Free Report) last posted its quarterly earnings results on Tuesday, July 28th. The credit services provider reported $1.38 earnings per share for the quarter, beating the consensus estimate of $1.28 by $0.10. The firm had revenue of $8.68 billion for the quarter, compared to analyst estimates of $8.47 billion. PayPal had a return on equity of 24.39% and a net margin of 14.36%.PayPal's quarterly revenue was up 4.8% on a year-over-year basis. During the same period in the previous year, the firm earned $1.40 earnings per share. On average, sell-side analysts anticipate that PayPal Holdings, Inc. will post 5.38 EPS for the current fiscal year.

PayPal Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, September 25th. Stockholders of record on Friday, September 4th will be given a $0.14 dividend. This represents a $0.56 dividend on an annualized basis and a dividend yield of 0.9%. The ex-dividend date of this dividend is Friday, September 4th. PayPal's dividend payout ratio is 10.59%.

Wall Street Analysts Forecast Growth

PYPL has been the subject of several research reports. Truist Financial raised their price objective on PayPal from $59.00 to $62.00 and gave the stock a "hold" rating in a research note on Wednesday. UBS Group set a $45.00 target price on PayPal in a report on Wednesday, July 29th. Daiwa Securities Group upgraded PayPal from a "hold" rating to an "outperform" rating in a research report on Wednesday, May 6th. William Blair restated a "market perform" rating on shares of PayPal in a report on Wednesday, July 15th. Finally, Cantor Fitzgerald upped their price objective on shares of PayPal from $54.00 to $60.00 and gave the company a "neutral" rating in a research note on Monday, August 3rd. Nine research analysts have rated the stock with a Buy rating, thirty-four have given a Hold rating and four have assigned a Sell rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and an average price target of $56.28.

More PayPal News

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: Venmo’s expansion into college tuition payments could increase transaction volume. PayPal and Venmo are now being integrated with Illumia, Nelnet Campus Commerce and TouchNet, allowing students and families at participating universities to pay tuition and fees through the digital wallets. The initiative adds a potentially recurring, higher-value use case, although transaction fees and adoption will vary by school. PayPal, Venmo connect to colleges
• Positive Sentiment: Agentic payments offer a longer-term growth narrative. PayPal is positioning its platform around AI-enabled commerce, digital identity and automated payments, potentially allowing software agents to complete transactions on behalf of consumers. The strategy could strengthen PayPal’s relevance as commerce evolves, but commercialization and competitive execution remain uncertain. PayPal Agentic Payments: Can They Reshape the Future of Commerce?
• Positive Sentiment: Technical momentum and investor interest remain supportive. PayPal has formed a bullish “golden cross,” while David Einhorn’s reported $61.5 million stake provides additional visibility and may reinforce the turnaround case. David Einhorn's PayPal Bet Just Flashed a Golden Cross
• Neutral Sentiment: Takeover chatter is supporting the shares but remains unconfirmed. Reports have revived speculation about a potential sale process involving Stripe and Advent International. No offer or transaction has been announced, so any takeover premium is speculative. PayPal Stock Closes Higher Thursday
• Negative Sentiment: The recent rally has increased valuation and execution concerns. Investors are questioning whether PayPal can sustain momentum amid modest underlying revenue growth and intense competition in digital payments and buy-now-pay-later services. A director’s $253,716 sale under a pre-arranged Rule 10b5-1 plan adds a mild cautionary signal, though it is not necessarily an indication of deteriorating business prospects. PayPal Insider Selling

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.

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.

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