PayPal Sees Unusually High Options Volume (NASDAQ:PYPL)

PayPal Holdings, Inc. (NASDAQ:PYPLGet 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.

Get Our Latest Report on PYPL

PayPal Stock Up 2.9%

Shares of PYPL stock traded up $1.33 on Monday, reaching $47.65. 20,280,918 shares of the company’s stock traded hands, compared to its average volume of 19,285,459. PayPal has a 12-month low of $38.46 and a 12-month high of $79.50. The company has a debt-to-equity ratio of 0.47, a quick ratio of 1.26 and a current ratio of 1.26. The company has a market capitalization of $42.03 billion, a P/E ratio of 8.94, a price-to-earnings-growth ratio of 1.16 and a beta of 1.33. The business’s 50 day moving average price is $44.01 and its two-hundred day moving average price is $47.39.

PayPal (NASDAQ:PYPLGet 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

(Get 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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