Wealthfront Advisers LLC Acquires New Shares in PayPal Holdings, Inc. $PYPL

Key Points

• Wealthfront Advisers acquired a new 98,081-share PayPal stake during the second quarter, valued at approximately $4.24 million. Institutional investors and hedge funds collectively own 68.32% of PayPal’s outstanding shares.
• PayPal’s latest quarterly results exceeded expectations, with adjusted earnings of $1.38 per share versus the $1.28 consensus and revenue of $8.68 billion, up 4.8% year over year.
• PayPal shares opened at $62.30, above the analyst consensus price target of $56.28; analysts’ overall rating remains “Hold.” The company also declared a quarterly dividend of $0.14 per share, representing a 0.9% annualized yield.

Wealthfront Advisers LLC bought a new stake in PayPal Holdings, Inc. (NASDAQ:PYPL - Free Report) during the 2nd quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund bought 98,081 shares of the credit services provider's stock, valued at approximately $4,235,000.

A number of other large investors have also made changes to their positions in the business. Maia Wealth LLC boosted its holdings in PayPal by 2.5% in the third quarter. Maia Wealth LLC now owns 6,404 shares of the credit services provider's stock worth $424,000 after acquiring an additional 155 shares in the last quarter. GeoWealth Management LLC increased its holdings 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 valued at $216,000 after acquiring an additional 188 shares in the last quarter. Formidable Asset Management LLC raised its position in shares of PayPal by 0.8% in the 1st quarter. Formidable Asset Management LLC now owns 25,937 shares of the credit services provider's stock valued at $1,173,000 after purchasing an additional 205 shares during the last quarter. KPP Advisory Services LLC raised its position in shares of PayPal by 3.3% in the 1st quarter. KPP Advisory Services LLC now owns 6,625 shares of the credit services provider's stock valued at $300,000 after purchasing an additional 214 shares during the last quarter. Finally, Jackson Thornton Wealth Management LLC boosted its stake in PayPal by 3.5% in the 1st quarter. Jackson Thornton Wealth Management LLC now owns 7,110 shares of the credit services provider's stock worth $322,000 after purchasing an additional 238 shares in the last quarter. 68.32% of the stock is owned by institutional investors and hedge funds.

Insider Activity

In related news, insider Frank Keller sold 732 shares of the stock in a transaction that occurred on Wednesday, July 29th. The stock was sold at an average price of $58.10, for a total value of $42,529.20. Following the completion of the sale, the insider owned 41,567 shares of the company's stock, valued at approximately $2,415,042.70. This trade represents a 1.73% decrease in their ownership of the stock. The transaction 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, CAO Chris Natali sold 1,337 shares of the firm's stock in a transaction on Wednesday, July 29th. The stock was sold at an average price of $58.10, for a total value of $77,679.70. Following the completion of the sale, the chief accounting officer directly owned 2,216 shares of the company's stock, valued at $128,749.60. This trade represents a 37.63% 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 worth $738,249 over the last ninety days. Corporate insiders own 0.63% of the company's stock.

PayPal Stock Performance

PYPL opened at $62.30 on Friday. The firm's fifty day simple moving average is $51.73 and its two-hundred day simple moving average is $47.42. PayPal Holdings, Inc. has a 52-week low of $38.46 and a 52-week high of $79.21. The company has a market cap of $53.30 billion, a price-to-earnings ratio of 11.78, a PEG ratio of 1.49 and a beta of 1.30. The company has a quick ratio of 1.29, a current ratio of 1.29 and a debt-to-equity ratio of 0.55.

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

PayPal Dividend Announcement

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. The ex-dividend date is Friday, September 4th. This represents a $0.56 dividend on an annualized basis and a dividend yield of 0.9%. PayPal's dividend payout ratio is 10.59%.

Wall Street Analysts Forecast Growth

Several equities analysts recently issued reports on PYPL shares. Clear Str raised PayPal to a "hold" rating in a research report on Thursday, July 16th. Argus set a $70.00 price target on PayPal in a research note on Wednesday, July 29th. UBS Group set a $45.00 price objective on PayPal in a report on Wednesday, July 29th. Morgan Stanley set a $45.00 price objective on PayPal in a research note on Wednesday, July 29th. Finally, Citigroup lifted their target price on PayPal from $48.00 to $61.00 and gave the stock a "neutral" rating in a report on Wednesday, July 29th. Nine equities 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 company's stock. According to data from MarketBeat, the company currently has an average rating of "Hold" and a consensus target price of $56.28.

Key PayPal News

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: Takeover speculation supported the stock. Deal chatter involving a possible Stripe and Advent International offer resurfaced, encouraging investors to view PayPal as a potential acquisition target. No offer or transaction has been confirmed, so the catalyst remains speculative. PayPal takeover speculation
• Positive Sentiment: Tuition-payment integrations expand PayPal’s potential transaction volume. PayPal and Venmo are now available through Illumia, Nelnet Campus Commerce and TouchNet, with participating schools including Bellarmine University, Butler University, Kansas State University, Michigan State University and Texas Tech. The initiative adds a recurring, high-value payment use case, though its near-term revenue contribution is unclear. PayPal and Venmo tuition-payment expansion
• Positive Sentiment: PayPal outperformed some buy-now-pay-later peers. Klarna and Affirm declined as PayPal remained positive, suggesting investors may be favoring the scale, established customer base and broader financial-services platform of more mature payment companies. PayPal and BNPL stock rotation
• Neutral Sentiment: Options pricing reflects substantial uncertainty. The options market implies a broad potential trading range over the coming year, consistent with uncertainty surrounding PayPal’s turnaround prospects and possible corporate activity. PayPal options outlook
• Neutral Sentiment: An insider sale was a modest cautionary signal. Suzan Kereere sold 4,162 shares worth approximately $253,716 under a pre-arranged Rule 10b5-1 plan. She retained 30,983 shares, reducing the significance of the transaction as an indicator of business prospects. PayPal insider sale filing
• Negative Sentiment: Competitive and valuation risks remain. TikTok is reportedly developing a peer-to-peer payment feature that could challenge Venmo’s social-payments positioning. Jim Cramer also warned that some fintech stocks, including PayPal, may be priced for optimistic outcomes. TikTok peer-to-peer payment report

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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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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