Insider Selling: PayPal (NASDAQ:PYPL) Insider Sells 732 Shares of Company Stock

PayPal Holdings, Inc. (NASDAQ:PYPL) insider Frank Keller sold 732 shares of the stock in a transaction on Wednesday, October 28th. The stock was sold at an average price of $55.37, for a total transaction of $40,530.84. Following the sale, the insider directly owned 41,567 shares in the company, valued at $2,301,564.79. This trade represents a 1.73% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Frank Keller also recently made the following trade(s):

• On Thursday, September 3rd, Frank Keller sold 4,612 shares of PayPal stock. The shares were sold at an average price of $55.43, for a total value of $255,643.16.

PayPal Stock Performance

Shares of NASDAQ PYPL traded up $0.06 during midday trading on Friday, reaching $57.01. 15,362,231 shares of the company traded hands, compared to its average volume of 17,175,986. PayPal Holdings, Inc. has a 52 week low of $38.46 and a 52 week high of $70.35. The company has a market cap of $48.77 billion, a price-to-earnings ratio of 10.88, a PEG ratio of 1.22 and a beta of 1.27. The stock has a 50-day moving average price of $55.47 and a 200 day moving average price of $50.04. The company has a debt-to-equity ratio of 0.56, a current ratio of 1.26 and a quick ratio of 1.29.

PayPal (NASDAQ:PYPL) last released its earnings results on Tuesday, October 27th. The credit services provider reported $1.45 EPS for the quarter, topping analysts’ consensus estimates of $1.31 by $0.14. The business had revenue of $8.58 billion for the quarter, compared to the consensus estimate of $8.71 billion. PayPal had a net margin of 13.78% and a return on equity of 24.39%. The business’s revenue for the quarter was up 2.0% on a year-over-year basis. During the same period in the previous year, the firm earned $1.34 EPS. Sell-side analysts anticipate that PayPal Holdings, Inc. will post 5.57 earnings per share for the current fiscal year.

PayPal Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, December 24th. Stockholders of record on Friday, December 4th will be issued a dividend of $0.14 per share. The ex-dividend date of this dividend is Friday, December 4th. This represents a $0.56 annualized dividend and a dividend yield of 1.0%. PayPal’s dividend payout ratio (DPR) is presently 10.69%.

Wall Street Analysts Forecast Growth

PYPL has been the subject of several research analyst reports. Wells Fargo & Company boosted their price target on shares of PayPal from $48.00 to $56.00 and gave the company an “equal weight” rating in a report on Wednesday, July 29th. Deutsche Bank Aktiengesellschaft reissued a “hold” rating and set a $55.00 price target on shares of PayPal in a research report on Friday, September 25th. Clear Str upgraded PayPal to a “hold” rating in a research report on Thursday, July 16th. BNP Paribas Exane raised their price target on PayPal from $43.50 to $52.00 and gave the stock a “neutral” rating in a research report on Tuesday, July 21st. Finally, JPMorgan Chase & Co. raised their price objective on PayPal from $46.00 to $65.00 and gave the company a “neutral” rating in a research note on Wednesday, July 29th. Eight investment analysts have rated the stock with a Buy rating, thirty-one have assigned a Hold rating and six have given a Sell rating to the company’s stock. According to MarketBeat.com, the stock presently has an average rating of “Hold” and an average price target of $55.94.

Key Headlines Impacting PayPal

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: PayPal’s earnings-call commentary highlighted progress in diversifying beyond its traditional checkout business, including growth in financial services, strong Venmo engagement, product expansion and continued cost discipline. These developments suggest improving operating execution and helped support the stock. The 5 most interesting analyst questions from PayPal’s Q3 earnings call
• Positive Sentiment: PayPal remains viewed as a potentially attractive value stock: commentary points to ongoing revenue growth, robust free cash flow and substantial share-repurchase capacity. Its relatively low valuation could provide downside support if the turnaround gains traction. Is PayPal Stock a Value or a Value Trap?
• Neutral Sentiment: KeyCorp raised its 2027 EPS forecasts for the first and third quarters but lowered its fourth-quarter estimate, leaving the overall earnings outlook mixed rather than materially changed.
• Neutral Sentiment: PayPal is included among financial-transaction companies that could benefit from resilient consumer spending, cross-border payments and strategic acquisitions. However, rising technology costs and inflation remain industry-wide risks. 5 Financial Transaction Stocks to Watch Amid Cost and Inflation Pressure
• Negative Sentiment: Barclays downgraded PayPal to Underweight and cut its price target to $53 from $56, citing slowing growth in core checkout, secular pressure on the branded button and a lower likelihood of a takeover. Barclays lowers PayPal stock to Underweight on slowing fundamentals
• Negative Sentiment: Several firms, including Canaccord Genuity, Needham, BTIG and Bernstein, maintained Hold or Neutral views, while Citigroup lowered its expectations. The broad lack of bullish analyst conviction continues to weigh on sentiment.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the stock. Rakuten Investment Management Inc. raised its stake in shares of PayPal by 7.4% during the 3rd quarter. Rakuten Investment Management Inc. now owns 226,620 shares of the credit services provider’s stock worth $12,213,000 after purchasing an additional 15,668 shares during the period. First Nebraska Trust Co bought a new stake in PayPal in the 3rd quarter worth approximately $1,690,000. VCI Wealth Management LLC purchased a new stake in PayPal during the 3rd quarter valued at about $1,144,000. Greenfield Seitz Capital Management LLC purchased a new stake in PayPal in the 3rd quarter worth approximately $216,000. Finally, MBA Advisors LLC boosted its position in PayPal by 35.0% during the 3rd quarter. MBA Advisors LLC now owns 7,560 shares of the credit services provider’s stock valued at $397,000 after acquiring an additional 1,959 shares in the last quarter. Institutional investors own 68.32% of the company’s stock.

PayPal Company Profile

PayPal Holdings, Inc operates a global digital payments platform that enables consumers and businesses to send, receive, and manage money online and through mobile devices. Its services support online checkout, peer-to-peer payments, money transfers, payment processing, invoicing, and other commerce-related transactions.

The company’s portfolio includes the PayPal and Venmo brands, Braintree’s payment processing technology, and Xoom’s international money transfer service. PayPal also offers merchant tools, digital wallets, payment solutions, and consumer financing products through its platform and related services.

PayPal traces its origins to 1998 and became an independent publicly traded company after separating from eBay in 2015.