Traders Buy High Volume of Call Options on PayPal Holdings (PYPL)
PayPal Holdings, Inc. (NASDAQ:PYPL) saw some unusual options trading on Wednesday. Stock traders bought 3,225 call options on the company. This is an increase of approximately 657% compared to the typical volume of 426 call options.
Shares of PayPal Holdings (NASDAQ PYPL) opened at 59.44 on Friday. PayPal Holdings has a one year low of $36.30 and a one year high of $61.30. The stock’s 50 day moving average price is $57.84 and its 200-day moving average price is $49.13. The stock has a market cap of $71.47 billion, a PE ratio of 47.94 and a beta of 0.99.
PayPal Holdings (NASDAQ:PYPL) last issued its earnings results on Wednesday, July 26th. The credit services provider reported $0.46 earnings per share for the quarter, topping the consensus estimate of $0.43 by $0.03. PayPal Holdings had a return on equity of 11.10% and a net margin of 12.82%. The company had revenue of $3.14 billion for the quarter, compared to analyst estimates of $3.09 billion. During the same period in the prior year, the firm posted $0.36 EPS. The business’s revenue was up 18.3% compared to the same quarter last year. On average, equities analysts predict that PayPal Holdings will post $1.83 earnings per share for the current fiscal year.
PayPal Holdings declared that its Board of Directors has approved a share buyback plan on Wednesday, April 26th that authorizes the company to buyback $5.00 billion in outstanding shares. This buyback authorization authorizes the credit services provider to buy up to 9.3% of its shares through open market purchases. Shares buyback plans are often an indication that the company’s board believes its stock is undervalued.
In other PayPal Holdings news, Director John J. Donahoe sold 170,000 shares of the firm’s stock in a transaction on Thursday, August 10th. The stock was sold at an average price of $58.18, for a total value of $9,890,600.00. Following the completion of the sale, the director now owns 124,516 shares of the company’s stock, valued at $7,244,340.88. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, COO William J. Ready sold 90,000 shares of the firm’s stock in a transaction on Monday, July 31st. The shares were sold at an average price of $59.25, for a total value of $5,332,500.00. Following the completion of the sale, the chief operating officer now directly owns 29,252 shares of the company’s stock, valued at approximately $1,733,181. The disclosure for this sale can be found here. In the last three months, insiders sold 265,852 shares of company stock valued at $15,543,798. 6.00% of the stock is owned by corporate insiders.
Hedge funds and other institutional investors have recently modified their holdings of the stock. Fox Run Management L.L.C. raised its position in shares of PayPal Holdings by 10.0% in the first quarter. Fox Run Management L.L.C. now owns 8,800 shares of the credit services provider’s stock worth $379,000 after buying an additional 800 shares in the last quarter. Norway Savings Bank raised its position in shares of PayPal Holdings by 0.5% in the first quarter. Norway Savings Bank now owns 5,300 shares of the credit services provider’s stock worth $228,000 after buying an additional 25 shares in the last quarter. American Research & Management Co. raised its position in shares of PayPal Holdings by 59.0% in the first quarter. American Research & Management Co. now owns 41,480 shares of the credit services provider’s stock worth $1,784,000 after buying an additional 15,400 shares in the last quarter. Cullinan Associates Inc. raised its position in shares of PayPal Holdings by 25.9% in the first quarter. Cullinan Associates Inc. now owns 114,200 shares of the credit services provider’s stock worth $4,913,000 after buying an additional 23,500 shares in the last quarter. Finally, Addison Capital Co raised its position in shares of PayPal Holdings by 10.8% in the first quarter. Addison Capital Co now owns 67,720 shares of the credit services provider’s stock worth $2,913,000 after buying an additional 6,625 shares in the last quarter. 81.54% of the stock is currently owned by institutional investors and hedge funds.
PYPL has been the subject of a number of recent analyst reports. Stifel Nicolaus reissued a “buy” rating and issued a $49.00 target price on shares of PayPal Holdings in a report on Sunday, April 23rd. Vetr downgraded PayPal Holdings from a “buy” rating to a “hold” rating and set a $45.52 target price for the company. in a report on Tuesday, April 25th. Cantor Fitzgerald reissued a “buy” rating and issued a $53.00 target price (up previously from $48.00) on shares of PayPal Holdings in a report on Thursday, April 27th. Royal Bank Of Canada raised their target price on PayPal Holdings from $50.00 to $52.00 and gave the company an “outperform” rating in a report on Thursday, April 27th. Finally, Piper Jaffray Companies raised PayPal Holdings from an “underweight” rating to a “neutral” rating and raised their target price for the company from $41.00 to $45.00 in a report on Thursday, April 27th. One investment analyst has rated the stock with a sell rating, eleven have assigned a hold rating, thirty have given a buy rating and two have issued a strong buy rating to the stock. The stock presently has a consensus rating of “Buy” and a consensus target price of $59.49.
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About PayPal Holdings
PayPal Holdings, Inc is a technology platform and digital payments company that enables digital and mobile payments on behalf of consumers and merchants. The Company’s combined payment solutions, including its PayPal, PayPal Credit, Braintree, Venmo, Xoom and Paydiant products, compose its Payments Platform.
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