Waterfront Wealth Inc. Sells 22,251 Shares of PayPal Holdings, Inc. $PYPL

Key Points

• Waterfront Wealth Inc. cut its PayPal stake by 45.8%, selling 22,251 shares and leaving 26,372 shares valued at about $1.495 million at quarter-end.
• PayPal missed quarterly estimates (EPS $1.23 vs. $1.29 expected; revenue $8.68B vs. $8.82B expected), and analysts maintain a consensus "Hold" with an average price target of $56.61 after several downgrades.
• Notable insider and institutional selling has occurred—insiders sold 87,608 shares (~$3.83M) in the last 90 days—and the company pays a $0.14 quarterly dividend (annualized $0.56, ~1.1% yield).

Waterfront Wealth Inc. lowered its holdings in PayPal Holdings, Inc. (NASDAQ:PYPL - Free Report) by 45.8% during the fourth quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 26,372 shares of the credit services provider's stock after selling 22,251 shares during the quarter. Waterfront Wealth Inc.'s holdings in PayPal were worth $1,495,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds have also added to or reduced their stakes in the business. Maia Wealth LLC increased its stake in PayPal by 2.5% in the third quarter. Maia Wealth LLC now owns 6,404 shares of the credit services provider's stock valued at $424,000 after acquiring an additional 155 shares during the period. Transatlantique Private Wealth LLC boosted its position in PayPal by 2.9% in the third quarter. Transatlantique Private Wealth LLC now owns 5,698 shares of the credit services provider's stock valued at $382,000 after buying an additional 159 shares in the last quarter. Sound Income Strategies LLC grew its stake in PayPal by 16.5% during the third quarter. Sound Income Strategies LLC now owns 1,185 shares of the credit services provider's stock worth $79,000 after buying an additional 168 shares during the last quarter. Martin & Co. Inc. TN grew its stake in PayPal by 0.3% during the third quarter. Martin & Co. Inc. TN now owns 56,934 shares of the credit services provider's stock worth $3,818,000 after buying an additional 175 shares during the last quarter. Finally, Harrell Investment Partners LLC grew its stake in PayPal by 2.0% during the third quarter. Harrell Investment Partners LLC now owns 9,185 shares of the credit services provider's stock worth $616,000 after buying an additional 184 shares during the last quarter. Institutional investors own 68.32% of the company's stock.

PayPal Stock Performance

Shares of NASDAQ PYPL opened at $50.81 on Monday. The company's 50 day simple moving average is $44.88 and its 200 day simple moving average is $55.76. PayPal Holdings, Inc. has a fifty-two week low of $38.46 and a fifty-two week high of $79.50. The firm has a market capitalization of $45.71 billion, a P/E ratio of 9.39, a P/E/G ratio of 1.52 and a beta of 1.40. The company has a debt-to-equity ratio of 0.49, a current ratio of 1.29 and a quick ratio of 1.29.

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 for the quarter, missing the consensus estimate of $1.29 by ($0.06). PayPal had a net margin of 15.77% and a return on equity of 25.42%. The business had revenue of $8.68 billion during the quarter, compared to analyst estimates of $8.82 billion. During the same quarter in the prior year, the company earned $1.19 earnings per share. The company's quarterly revenue was up 4.0% on a year-over-year basis. On average, analysts predict 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 was paid on Wednesday, March 25th. Investors of record on Wednesday, March 4th were issued a $0.14 dividend. This represents a $0.56 annualized dividend and a yield of 1.1%. The ex-dividend date was Wednesday, March 4th. PayPal's dividend payout ratio is currently 10.35%.

Wall Street Analyst Weigh In

Several analysts have weighed in on PYPL shares. The Goldman Sachs Group decreased their price objective on shares of PayPal from $64.00 to $41.00 and set a "sell" rating on the stock in a research note on Wednesday, February 4th. Bank of America started coverage on shares of PayPal in a research note on Thursday, March 5th. They set a "neutral" rating and a $48.00 price objective on the stock. Argus decreased their price objective on shares of PayPal from $87.00 to $65.00 and set a "buy" rating on the stock in a research note on Friday, February 6th. Compass Point raised shares of PayPal from a "sell" rating to a "neutral" rating and set a $51.00 price objective on the stock in a research note on Wednesday, February 4th. Finally, Canaccord Genuity Group reaffirmed a "hold" rating and set a $42.00 price objective (down from $100.00) on shares of PayPal in a research note on Wednesday, February 4th. Seven research analysts have rated the stock with a Buy rating, thirty-two have assigned a Hold rating and six have issued a Sell rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of "Hold" and an average price target of $56.61.

Insider Activity at PayPal

In related news, insider Suzan Kereere sold 37,613 shares of the stock in a transaction that occurred 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 transaction, the insider directly owned 30,983 shares in the company, valued at $1,285,484.67. This represents a 54.83% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, CAO Chris Natali sold 2,208 shares of the stock in a transaction on Tuesday, March 3rd. The stock was sold at an average price of $44.73, for a total transaction of $98,763.84. Following the completion of the sale, the chief accounting officer owned 1,140 shares in the company, valued at approximately $50,992.20. This trade represents a 65.95% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 87,608 shares of company stock worth $3,831,535 over the last ninety days. Company insiders own 0.08% of the company's stock.

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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