Y Intercept Hong Kong Ltd Makes New Investment in PayPal Holdings, Inc. $PYPL

Key Points

• Y Intercept Hong Kong Ltd. bought 75,561 PayPal shares worth approximately $3.26 million in the second quarter. Institutional investors collectively own 68.32% of PayPal.
• PayPal exceeded quarterly expectations, reporting $1.38 in EPS versus the $1.28 consensus and revenue of $8.68 billion, up 4.8% year over year. The company also declared a quarterly dividend of $0.14 per share, yielding approximately 0.9% annually.
• Analyst sentiment remains mixed, with PayPal carrying a consensus “Hold” rating and an average price target of $55.72, below its reported trading price of $59.20.

Y Intercept Hong Kong Ltd purchased a new position in PayPal Holdings, Inc. (NASDAQ:PYPL - Free Report) in the second quarter, according to its most recent disclosure with the SEC. The institutional investor purchased 75,561 shares of the credit services provider's stock, valued at approximately $3,263,000.

Several other institutional investors and hedge funds have also made changes to their positions in the stock. Maia Wealth LLC lifted its position 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 purchasing an additional 155 shares during the period. GeoWealth Management LLC raised its stake in shares of PayPal by 6.2% in the 3rd quarter. GeoWealth Management LLC now owns 3,214 shares of the credit services provider's stock worth $216,000 after buying an additional 188 shares in the last quarter. Formidable Asset Management LLC lifted its holdings in shares of PayPal by 0.8% in 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 buying an additional 205 shares during the period. KPP Advisory Services LLC lifted its holdings in shares of PayPal by 3.3% in the first quarter. KPP Advisory Services LLC now owns 6,625 shares of the credit services provider's stock valued at $300,000 after buying an additional 214 shares during the period. Finally, Jackson Thornton Wealth Management LLC boosted its stake in PayPal by 3.5% during the first quarter. Jackson Thornton Wealth Management LLC now owns 7,110 shares of the credit services provider's stock valued at $322,000 after buying an additional 238 shares in the last quarter. 68.32% of the stock is currently owned by institutional investors.

PayPal Trading Up 0.3%

Shares of PYPL opened at $59.20 on Thursday. The business's 50-day moving average price is $49.37 and its 200 day moving average price is $47.15. The stock has a market capitalization of $50.64 billion, a P/E ratio of 11.19, a P/E/G ratio of 1.44 and a beta of 1.30. PayPal Holdings, Inc. has a 1-year low of $38.46 and a 1-year high of $79.21. The company has a current ratio of 1.29, a quick ratio of 1.29 and a debt-to-equity ratio of 0.55.

PayPal (NASDAQ:PYPL - Get Free Report) last announced its earnings results 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. The company had revenue of $8.68 billion during the quarter, compared to analysts' expectations of $8.47 billion. PayPal had a net margin of 14.36% and a return on equity of 24.39%. The business's revenue for the quarter was up 4.8% on a year-over-year basis. During the same period last year, the company posted $1.40 earnings per share. Analysts expect that PayPal Holdings, Inc. will post 5.37 earnings per share for the current year.

PayPal Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, September 25th. Investors of record on Friday, September 4th will be paid a $0.14 dividend. The ex-dividend date of this dividend is Friday, September 4th. This represents a $0.56 dividend on an annualized basis and a yield of 0.9%. PayPal's dividend payout ratio (DPR) is currently 10.59%.

Insider Buying and Selling

In other PayPal news, CAO Chris Natali sold 1,337 shares of the business's stock in a transaction 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 sale, the chief accounting officer directly owned 2,216 shares of the company's stock, valued at $128,749.60. The trade was a 37.63% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Frank Keller sold 4,612 shares of the firm's stock in a transaction on Wednesday, June 3rd. The stock was sold at an average price of $42.54, for a total value of $196,194.48. Following the completion of the sale, the insider directly owned 41,567 shares of the company's stock, valued at approximately $1,768,260.18. This trade represents a 9.99% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 10,612 shares of company stock valued at $484,534. Company insiders own 0.63% of the company's stock.

PayPal News Summary

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: Venmo growth supports the recovery story. Venmo’s total payment volume is growing at a mid-teens rate, giving PayPal an important source of transaction growth. Increasing adoption of products such as payments, credit and other monetization tools could help convert that activity into faster revenue growth. PayPal's Venmo: Can Monetization Sustain Its Mid-Teens Growth?
• Positive Sentiment: Recent earnings and operational improvements remain supportive. PayPal reported quarterly earnings of $1.38 per share, ahead of the $1.28 consensus estimate, while revenue of $8.68 billion also exceeded expectations. Commentary highlighting improvements under CEO Enrique Lores and PayPal’s strong July performance has reinforced the view that the company may be stabilizing after a difficult period. Jim Cramer Examines PayPal Holdings Performance Under Enrique Lores and M&A Speculation
• Neutral Sentiment: Valuation and M&A speculation are influencing sentiment. Analysts and commentators are debating whether PayPal remains undervalued following its recent share-price gains. Reported speculation about a potential buyout proposal has added an additional catalyst, but there is no confirmed transaction, making this a source of volatility rather than a firm fundamental driver. Is PayPal Holdings (PYPL) Undervalued After Earnings And Its Recent Share Price Jump?
• Negative Sentiment: Investors remain concerned about monetization and the sustainability of growth. Venmo’s strong payment-volume expansion will not necessarily produce comparable revenue growth unless PayPal can increase product usage and monetization. After the stock’s sharp recent advance, any evidence that revenue conversion or profitability is lagging expectations could limit further upside. PayPal's Venmo: Can Monetization Sustain Its Mid-Teens Growth?

Analysts Set New Price Targets

A number of research firms recently issued reports on PYPL. HSBC initiated coverage on PayPal in a report on Friday, July 24th. They set a "buy" rating on the stock. UBS Group set a $45.00 price objective on shares of PayPal in a research report on Wednesday, July 29th. Cantor Fitzgerald lifted their price objective on shares of PayPal from $54.00 to $60.00 and gave the stock a "neutral" rating in a research note on Monday, August 3rd. Wells Fargo & Company boosted their target price on shares of PayPal from $48.00 to $56.00 and gave the stock an "equal weight" rating in a report on Wednesday, July 29th. Finally, Argus set a $70.00 target price on shares of PayPal in a research note on Wednesday, July 29th. Nine research analysts have rated the stock with a Buy rating, thirty-four have assigned a Hold rating and four have given a Sell rating to the stock. Based on data from MarketBeat, the company presently has an average rating of "Hold" and a consensus target price of $55.72.

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.

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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