Chapin Davis Inc. Sells 13,000 Shares of PayPal Holdings, Inc. $PYPL

Chapin Davis Inc. decreased its position in shares of PayPal Holdings, Inc. (NASDAQ:PYPLFree Report) by 53.7% during the second quarter, according to its most recent filing with the SEC. The firm owned 11,216 shares of the credit services provider’s stock after selling 13,000 shares during the period. Chapin Davis Inc.’s holdings in PayPal were worth $484,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors have also recently modified their holdings of the company. Wellington Management Group LLP grew its holdings in PayPal by 10.2% in the second quarter. Wellington Management Group LLP now owns 88,379 shares of the credit services provider’s stock worth $3,816,000 after purchasing an additional 8,154 shares during the period. Kingsview Wealth Management LLC purchased a new stake in PayPal during the 2nd quarter valued at $649,000. Beacon Pointe Advisors LLC bought a new stake in PayPal in the 2nd quarter worth about $6,472,000. Livforsakringsbolaget Skandia Omsesidigt bought a new stake in shares of PayPal in the second quarter worth approximately $260,000. Finally, Rakuten Investment Management Inc. bought a new stake in PayPal in the 2nd quarter worth approximately $9,362,000. 68.32% of the stock is owned by hedge funds and other institutional investors.

PayPal Price Performance

Shares of PYPL stock opened at $53.66 on Friday. The company’s 50-day simple moving average is $53.88 and its two-hundred day simple moving average is $48.11. The company has a market capitalization of $45.90 billion, a P/E ratio of 10.14, a P/E/G ratio of 1.50 and a beta of 1.30. PayPal Holdings, Inc. has a one year low of $38.46 and a one year high of $79.21. The company has a debt-to-equity ratio of 0.55, a current ratio of 1.29 and a quick ratio of 1.29.

PayPal (NASDAQ:PYPLGet Free Report) last issued its earnings results on Tuesday, July 28th. The credit services provider reported $1.38 earnings per share for the quarter, beating analysts’ consensus estimates of $1.28 by $0.10. The business had revenue of $8.68 billion during 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 revenue was up 4.8% on a year-over-year basis. During the same period in the previous year, the company posted $1.40 EPS. As a group, equities analysts anticipate that PayPal Holdings, Inc. will post 5.38 EPS for the current year.

PayPal Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, September 25th. Investors of record on Friday, September 4th will be issued a dividend of $0.14 per share. This represents a $0.56 annualized dividend and a yield of 1.0%. The ex-dividend date of this dividend is Friday, September 4th. PayPal’s dividend payout ratio (DPR) is presently 10.59%.

Insider Activity

In related news, CAO Chris Natali sold 1,337 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 $77,679.70. Following the completion of the transaction, the chief accounting officer owned 2,216 shares in the company, valued at $128,749.60. The trade was a 37.63% decrease in their position. The transaction 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 4,612 shares of the company’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 transaction, the insider directly owned 41,567 shares in the company, valued at approximately $1,768,260.18. The trade was a 9.99% 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. In the last three months, insiders have sold 14,774 shares of company stock worth $738,249. 0.63% of the stock is currently owned by company insiders.

Analyst Upgrades and Downgrades

PYPL has been the subject of a number of recent research reports. JPMorgan Chase & Co. boosted their price target on PayPal from $46.00 to $65.00 and gave the company a “neutral” rating in a research note on Wednesday, July 29th. Clear Str upgraded PayPal to a “hold” rating in a research note on Thursday, July 16th. Truist Financial increased their price objective on shares of PayPal from $59.00 to $62.00 and gave the company a “hold” rating in a report on Wednesday, August 19th. Wells Fargo & Company raised their price objective on PayPal from $48.00 to $56.00 and gave the company an “equal weight” rating in a research report on Wednesday, July 29th. Finally, Argus set a $70.00 price target on shares of PayPal in a research report on Wednesday, July 29th. Nine investment analysts have rated the stock with a Buy rating, thirty-four have assigned a Hold rating and four have assigned a Sell rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus target price of $56.14.

Check Out Our Latest Stock Analysis on PayPal

PayPal News Roundup

Here are the key news stories impacting PayPal this week:

  • Positive Sentiment: Some market observers argue that PayPal’s board protected potentially greater long-term shareholder value by rejecting the reported $60.50-per-share offer, which valued the company at approximately $53 billion. Options pricing also continues to indicate a bullish bias among some traders. PayPal Drops 12% Overnight on Dead Stripe Deal
  • Positive Sentiment: PayPal remains an independent turnaround story, with recent initiatives expanding PayPal and Venmo tuition-payment integrations through campus platforms. Investors will now focus more closely on whether management can improve growth and execution without takeover support. PayPal Tuition Payment Push
  • Neutral Sentiment: The failed transaction removes a major change-of-control catalyst and returns attention to PayPal’s standalone fundamentals. The company recently exceeded quarterly earnings and revenue expectations, but revenue growth remained modest and earnings per share declined year over year, leaving execution of its turnaround as the key valuation driver.
  • Negative Sentiment: The reported withdrawal eliminates the takeover premium that had supported PYPL during weeks of deal speculation. Reports cited valuation concerns, regulatory hurdles and a breakdown in negotiations; the abrupt reversal has therefore prompted investors to reassess PayPal at its lower standalone valuation. PayPal Shares Fall After Consortium Abandons Takeover Pursuit
  • Negative Sentiment: Analysts, including Mizuho, are highlighting risks facing PayPal after the deal collapsed. The heavy trading volume and test of the 50-day moving average indicate heightened uncertainty as investors await evidence that the company can generate sufficient growth independently. Why PayPal Stock Is Down and What Mizuho Thinks Comes Next

About PayPal

(Free Report)

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.

Further Reading

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Institutional Ownership by Quarter for PayPal (NASDAQ:PYPL)

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