PayPal Holdings, Inc. (NASDAQ:PYPL – Get Free Report) saw some unusual options trading on Monday. Traders purchased 109,935 call options on the stock. This is an increase of approximately 37% compared to the average volume of 80,128 call options.
Wall Street Analysts Forecast Growth
PYPL has been the subject of a number of recent analyst reports. UBS Group increased their price target on PayPal from $44.00 to $48.00 and gave the company a “neutral” rating in a research report on Wednesday, May 6th. Cantor Fitzgerald upped their price objective on shares of PayPal from $42.00 to $54.00 and gave the company a “neutral” rating in a research note on Tuesday, May 5th. BMO Capital Markets initiated coverage on shares of PayPal in a report on Tuesday, April 21st. They issued a “market perform” rating and a $52.00 target price for the company. Loop Capital began coverage on shares of PayPal in a research report on Tuesday, March 31st. They issued a “hold” rating and a $46.00 target price on the stock. Finally, Needham & Company LLC restated a “hold” rating on shares of PayPal in a report on Tuesday, May 5th. Seven analysts have rated the stock with a Buy rating, thirty-two have issued a Hold rating and six have assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the company presently has a consensus rating of “Hold” and a consensus target price of $53.91.
PayPal Stock Up 2.9%
PayPal (NASDAQ:PYPL – Get Free Report) last announced its quarterly earnings data on Tuesday, May 5th. The credit services provider reported $1.34 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.27 by $0.07. PayPal had a return on equity of 25.02% and a net margin of 15.00%.The firm had revenue of $8.35 billion during the quarter, compared to the consensus estimate of $8.05 billion. During the same period in the prior year, the business earned $1.33 EPS. The business’s revenue for the quarter was up 7.2% on a year-over-year basis. On average, equities analysts forecast that PayPal will post 5.32 earnings per share for the current year.
PayPal Announces Dividend
The business also recently declared a quarterly dividend, which was paid on Thursday, June 25th. Investors of record on Thursday, June 4th were issued a dividend of $0.14 per share. This represents a $0.56 annualized dividend and a dividend yield of 1.2%. The ex-dividend date was Thursday, June 4th. PayPal’s dividend payout ratio (DPR) is currently 10.51%.
Insider Buying and Selling at PayPal
In related news, CAO Chris Natali sold 1,337 shares of PayPal stock in a transaction on Wednesday, April 29th. The stock was sold at an average price of $49.46, for a total value of $66,128.02. Following the transaction, the chief accounting officer directly owned 1,586 shares in the company, valued at $78,443.56. The trade was a 45.74% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Frank Keller sold 10,732 shares of PayPal stock in a transaction on Wednesday, April 29th. The stock was sold at an average price of $49.96, for a total value of $536,170.72. Following the completion of the transaction, the insider owned 41,567 shares in the company, valued at $2,076,687.32. The trade was a 20.52% 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. Over the last 90 days, insiders have sold 20,612 shares of company stock valued at $966,623. Corporate insiders own 0.63% of the company’s stock.
Institutional Inflows and Outflows
Several large investors have recently added to or reduced their stakes in PYPL. Bard Associates Inc. purchased a new stake in PayPal in the 4th quarter worth approximately $25,000. Allied Private Wealth LLC purchased a new position in shares of PayPal during the 2nd quarter valued at $25,000. Robinswood Financial LLC purchased a new position in shares of PayPal during the 1st quarter valued at $26,000. Caitong International Asset Management Co. Ltd increased its stake in shares of PayPal by 15,233.3% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 460 shares of the credit services provider’s stock worth $27,000 after acquiring an additional 457 shares during the last quarter. Finally, Safe Harbor Fiduciary LLC acquired a new position in shares of PayPal in the fourth quarter worth $28,000. Institutional investors and hedge funds own 68.32% of the company’s stock.
PayPal News Roundup
Here are the key news stories impacting PayPal this week:
- Positive Sentiment: PayPal joined the European Payments Council, a strategically important move that could expand its influence over European payment standards and support its international growth ambitions. PayPal Joins the European Payments Council
- Positive Sentiment: Investors bought an unusually high volume of PayPal call options, a sign that some traders are positioning for further gains in PYPL.
- Positive Sentiment: Technical and index-related flows may be providing support as Russell reconstitution and market-cap reshuffling keep attention on the stock.
- Neutral Sentiment: Recent articles continue to frame PayPal as a rebound candidate, with debate centered on whether the stock is undervalued or a value trap. Is PayPal Stock a Bargain or a Value Trap?
- Negative Sentiment: Broader investor caution remains in the background because some recent commentary points to margin pressure and mixed institutional positioning, which could limit upside.
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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