Geode Capital Management LLC Cuts Stake in PayPal Holdings, Inc. $PYPL

Geode Capital Management LLC lowered its position in shares of PayPal Holdings, Inc. (NASDAQ:PYPL) by 1.3% during the 4th quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm owned 21,472,335 shares of the credit services provider’s stock after selling 293,214 shares during the period. Geode Capital Management LLC’s holdings in PayPal were worth $1,248,101,000 at the end of the most recent quarter.

Several other institutional investors have also recently made changes to their positions in PYPL. Kelleher Financial Advisors purchased a new position in PayPal in the third quarter valued at about $30,000. Cloud Capital Management LLC purchased a new position in PayPal in the third quarter valued at about $30,000. Torren Management LLC purchased a new position in PayPal in the fourth quarter valued at about $31,000. Strategic Advocates LLC purchased a new position in PayPal in the third quarter valued at about $38,000. Finally, Steph & Co. grew its stake in PayPal by 103.1% in the fourth quarter. Steph & Co. now owns 656 shares of the credit services provider’s stock valued at $38,000 after purchasing an additional 333 shares during the last quarter. Hedge funds and other institutional investors own 68.32% of the company’s stock.

Insider Buying and Selling

In related news, insider Frank Keller sold 10,732 shares of PayPal stock in a transaction dated Wednesday, April 29th. The stock was sold at an average price of $49.96, for a total transaction of $536,170.72. Following the completion of the sale, the insider owned 41,567 shares of the company’s stock, valued at $2,076,687.32. The trade was a 20.52% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Chris Natali sold 1,337 shares of PayPal stock in a transaction dated Wednesday, April 29th. The stock was sold at an average price of $49.46, for a total value of $66,128.02. Following the sale, the chief accounting officer directly owned 1,586 shares of the company’s stock, valued at $78,443.56. This trade represents a 45.74% decrease in their position. 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. Insiders sold 57,373 shares of company stock valued at $2,684,341 over the last quarter. 0.63% of the stock is currently owned by company insiders.

Wall Street Analysts Forecast Growth

Several equities analysts have issued reports on PYPL shares. Compass Point upgraded PayPal from a “sell” rating to a “neutral” rating and set a $51.00 target price on the stock in a research note on Wednesday, February 4th. Truist Financial cut their target price on PayPal from $45.00 to $44.00 and set a “sell” rating on the stock in a research note on Tuesday, May 12th. Argus cut their target price on PayPal from $87.00 to $65.00 and set a “buy” rating on the stock in a research note on Friday, February 6th. Needham & Company LLC reiterated a “hold” rating on shares of PayPal in a research note on Tuesday, May 5th. Finally, Sanford C. Bernstein reiterated a “market perform” rating on shares of PayPal in a research note on Tuesday, February 24th. Eight research analysts have rated the stock with a Buy rating, thirty-two have assigned a Hold rating and five have assigned a Sell rating to the company. According to data from MarketBeat, the stock presently has an average rating of “Hold” and a consensus price target of $55.85.

Trending Headlines about PayPal

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: PayPal announced a partnership with Tencent’s Weixin Pay that will let U.S. PayPal users pay at tens of millions of merchants in China by scanning QR codes, expanding PayPal’s cross-border payment network and potentially opening a large new travel and spending market. Article: Tencent links PayPal to WeChat Pay network, enabling US users to spend across China
• Positive Sentiment: PayPal and Tencent said the rollout could eventually extend to PayPal users in other markets, while temporary fee waivers through 2026 may encourage adoption and transaction growth. Article: Tencent links PayPal to WeChat Pay network, enabling US users to spend across China
• Positive Sentiment: Management reiterated plans to find about $1.5 billion in gross run-rate savings through AI, automation, and restructuring, which could support margin expansion and earnings growth. Article: PayPal’s $1.5B Cost Reduction: Will It Drive Faster Growth?
• Positive Sentiment: Analyst commentary and a conference presentation framed PayPal as a company with strong free cash flow and substantial net cash, reinforcing the view that the shares may be undervalued. Article: PayPal: A 15% FCF Yield With 10% Of The Market Cap Net Cash
• Neutral Sentiment: PayPal-related short-interest data showed no meaningful change in available reported shares, so this does not appear to be a major new trading driver. Article: PayPal Price Performance

PayPal Price Performance

Shares of NASDAQ PYPL opened at $44.46 on Friday. 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 cap of $39.22 billion, a PE ratio of 8.34, a P/E/G ratio of 1.10 and a beta of 1.39. The business has a 50-day simple moving average of $46.32 and a two-hundred day simple moving average of $51.43. PayPal Holdings, Inc. has a fifty-two week low of $38.46 and a fifty-two week high of $79.50.

PayPal (NASDAQ:PYPL) last issued its quarterly earnings results on Tuesday, May 5th. The credit services provider reported $1.34 earnings per share 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 business had revenue of $8.35 billion during the quarter, compared to the consensus estimate of $8.05 billion. During the same quarter last year, the company earned $1.33 earnings per share. The company’s quarterly revenue was up 7.2% on a year-over-year basis. As a group, equities analysts expect that PayPal Holdings, Inc. will post 5.3 EPS for the current fiscal year.

PayPal Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, June 25th. Investors of record on Thursday, June 4th will be issued a dividend of $0.14 per share. The ex-dividend date of this dividend is Thursday, June 4th. This represents a $0.56 dividend on an annualized basis and a dividend yield of 1.3%. PayPal’s payout ratio is 10.51%.

PayPal Company Profile

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.