Key Points
- PayPal insider Suzan Kereere sold 4,162 shares for approximately $253,716 under a pre-arranged Rule 10b5-1 plan, reducing her ownership by 11.84% while retaining 30,983 shares.
- PayPal exceeded quarterly expectations with $1.38 EPS and $8.68 billion in revenue, while declaring a quarterly dividend of $0.14 per share, equivalent to a 0.9% yield.
- Analyst sentiment remains mixed: PayPal has a consensus “Hold” rating and an average price target of $56.28, despite several analysts recently raising targets or upgrading the stock.
PayPal Holdings, Inc. (NASDAQ:PYPL - Get Free Report) insider Suzan Kereere sold 4,162 shares of the firm's stock in a transaction dated Tuesday, August 18th. The stock was sold at an average price of $60.96, for a total value of $253,715.52. Following the sale, the insider directly owned 30,983 shares in the company, valued at approximately $1,888,723.68. This trade represents a 11.84% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
Suzan Kereere also recently made the following trade(s):
- On Wednesday, June 3rd, Suzan Kereere sold 3,379 shares of PayPal stock. The shares were sold at an average price of $42.79, for a total value of $144,587.41.
PayPal Stock Performance
Shares of PYPL stock opened at $61.25 on Thursday. 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 Holdings, Inc. has a 12-month low of $38.46 and a 12-month high of $79.21. The business's 50 day moving average is $51.31 and its two-hundred day moving average is $47.35. The company has a market capitalization of $52.40 billion, a P/E ratio of 11.58, a P/E/G ratio of 1.47 and a beta of 1.30.
PayPal (NASDAQ:PYPL - Get Free Report) last posted its quarterly earnings data on Tuesday, July 28th. The credit services provider reported $1.38 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.28 by $0.10. The business had revenue of $8.68 billion for the quarter, compared to the consensus estimate of $8.47 billion. PayPal had a net margin of 14.36% and a return on equity of 24.39%. The company's revenue was up 4.8% compared to the same quarter last year. During the same period last year, the firm posted $1.40 earnings per share. Analysts expect that PayPal Holdings, Inc. will post 5.38 EPS for the current fiscal year.
PayPal Announces Dividend
The firm also recently declared a quarterly dividend, which will be paid on Friday, September 25th. Stockholders of record on Friday, September 4th will be paid a $0.14 dividend. This represents a $0.56 annualized dividend and a dividend yield of 0.9%. The ex-dividend date of this dividend is Friday, September 4th. PayPal's dividend payout ratio (DPR) is currently 10.59%.
Institutional Investors Weigh In On PayPal
Several institutional investors have recently added to or reduced their stakes in PYPL. BlackRock Inc. purchased a new position in shares of PayPal during the second quarter worth about $3,236,989,000. Bank of America Corp DE purchased a new stake in PayPal during the 2nd quarter valued at approximately $975,563,000. Norges Bank acquired a new stake in PayPal during the 4th quarter worth approximately $949,758,000. Primecap Management Co. CA acquired a new stake in PayPal during the 2nd quarter worth approximately $422,092,000. Finally, Corient Private Wealth LP acquired a new stake in PayPal during the 2nd quarter worth approximately $20,758,000. Hedge funds and other institutional investors own 68.32% of the company's stock.
Analysts Set New Price Targets
A number of equities analysts recently commented on the company. Argus set a $70.00 price objective on PayPal in a research report on Wednesday, July 29th. Cantor Fitzgerald upped their target price on PayPal from $54.00 to $60.00 and gave the company a "neutral" rating in a report on Monday, August 3rd. Jefferies Financial Group raised PayPal from a "hold" rating to a "buy" rating in a research note on Tuesday, July 28th. BTIG Research reiterated a "neutral" rating on shares of PayPal in a report on Wednesday, July 15th. Finally, Susquehanna boosted their price target on shares of PayPal from $63.00 to $67.00 and gave the company a "positive" rating in a research report on Wednesday, July 29th. Nine equities 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 company. Based on data from MarketBeat.com, PayPal presently has a consensus rating of "Hold" and an average price target of $56.28.
View Our Latest Stock Report on PayPal
PayPal News Summary
Here are the key news stories impacting PayPal this week:
- Positive Sentiment: New tuition-payment integrations expand PayPal’s reach. PayPal and Venmo can now be used to pay tuition and fees through Illumia, Nelnet Campus Commerce and TouchNet. The services are already available at schools including Bellarmine, Butler, Kansas State, Michigan State and Texas Tech, potentially increasing transaction volume and user engagement. The near-term revenue impact is uncertain, but the expansion adds another recurring payment use case. PayPal and Venmo Expand to Tuition Payments
- Positive Sentiment: Takeover interest remains a potential catalyst. Reports say discussions involving Stripe and Advent International have resurfaced, reviving expectations that PayPal could receive a takeover offer. No transaction has been announced, so the potential premium is speculative and dependent on valuation, financing and regulatory approval. PayPal Takeover Talks Resurface
- Neutral Sentiment: Options indicate elevated uncertainty. The options market implies a wide trading range for PayPal over the next year, reflecting uncertainty about the company’s turnaround and possible corporate activity rather than a clear directional outlook. PayPal Options Market Outlook
- Neutral Sentiment: An insider sale provides a limited cautionary signal. Director Suzan Kereere sold 4,162 shares for approximately $253,716 under a pre-arranged Rule 10b5-1 trading plan. Because the sale was scheduled in advance and she retained most of her holdings, it does not necessarily indicate a change in management’s outlook. PayPal Insider Sale Filing
- Negative Sentiment: Competitive and valuation concerns remain. TikTok is reportedly developing peer-to-peer payments through direct messages, potentially challenging Venmo’s social-payment positioning. Separately, Jim Cramer argued that several fintech stocks, including PayPal, may be priced for overly optimistic outcomes. TikTok Payment Feature Report
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.
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