Investors Buy Large Volume of Call Options on PayPal (NASDAQ:PYPL)

PayPal Holdings, Inc. (NASDAQ:PYPLGet Free Report) was the target of some unusual options trading activity on Thursday. Traders bought 202,728 call options on the company. This represents an increase of approximately 53% compared to the average volume of 132,453 call options.

PayPal Stock Performance

PYPL stock opened at $67.02 on Friday. The stock has a market capitalization of $70.11 billion, a PE ratio of 16.88, a price-to-earnings-growth ratio of 1.04 and a beta of 1.43. The company has a debt-to-equity ratio of 0.47, a current ratio of 1.28 and a quick ratio of 1.28. The company has a 50 day moving average price of $64.36 and a 200 day moving average price of $62.04. PayPal has a fifty-two week low of $50.25 and a fifty-two week high of $76.54.

PayPal (NASDAQ:PYPLGet Free Report) last issued its quarterly earnings results on Tuesday, April 30th. The credit services provider reported $1.08 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.22 by ($0.14). The firm had revenue of $7.70 billion for the quarter, compared to analyst estimates of $7.52 billion. PayPal had a net margin of 14.26% and a return on equity of 21.58%. The company’s revenue was up 9.4% compared to the same quarter last year. During the same period last year, the company earned $0.86 EPS. Analysts forecast that PayPal will post 4.13 EPS for the current year.

Insider Activity at PayPal

In other news, Director Deborah M. Messemer sold 4,422 shares of PayPal stock in a transaction on Friday, May 24th. The stock was sold at an average price of $61.65, for a total transaction of $272,616.30. Following the transaction, the director now directly owns 13,976 shares in the company, valued at approximately $861,620.40. The sale was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Company insiders own 0.14% of the company’s stock.

Institutional Investors Weigh In On PayPal

A number of institutional investors and hedge funds have recently added to or reduced their stakes in PYPL. Morgan Stanley grew its holdings in PayPal by 4.5% during the third quarter. Morgan Stanley now owns 20,069,337 shares of the credit services provider’s stock valued at $1,173,254,000 after purchasing an additional 873,181 shares during the period. Norges Bank acquired a new position in PayPal in the fourth quarter valued at about $749,561,000. Northern Trust Corp increased its holdings in shares of PayPal by 0.7% in the third quarter. Northern Trust Corp now owns 11,767,054 shares of the credit services provider’s stock worth $687,902,000 after acquiring an additional 78,105 shares in the last quarter. Charles Schwab Investment Management Inc. lifted its holdings in shares of PayPal by 4.0% during the 4th quarter. Charles Schwab Investment Management Inc. now owns 6,976,859 shares of the credit services provider’s stock valued at $428,449,000 after purchasing an additional 265,116 shares in the last quarter. Finally, FMR LLC grew its position in shares of PayPal by 29.5% in the 3rd quarter. FMR LLC now owns 6,916,982 shares of the credit services provider’s stock valued at $404,367,000 after purchasing an additional 1,575,930 shares during the period. Institutional investors own 68.32% of the company’s stock.

Analyst Upgrades and Downgrades

Several analysts have issued reports on PYPL shares. Monness Crespi & Hardt boosted their price objective on PayPal from $80.00 to $88.00 and gave the stock a “buy” rating in a report on Monday, April 29th. Wedbush reiterated an “outperform” rating and set a $85.00 price objective on shares of PayPal in a research report on Thursday, February 8th. Royal Bank of Canada increased their target price on PayPal from $74.00 to $84.00 and gave the company an “outperform” rating in a report on Wednesday, May 1st. Canaccord Genuity Group lowered their price target on PayPal from $100.00 to $80.00 and set a “buy” rating on the stock in a report on Thursday, February 8th. Finally, Sanford C. Bernstein increased their price objective on PayPal from $66.00 to $68.00 and gave the stock a “market perform” rating in a research note on Thursday, April 18th. Twenty-one equities research analysts have rated the stock with a hold rating and sixteen have issued a buy rating to the company. According to data from MarketBeat, the company has an average rating of “Hold” and an average price target of $73.59.

Get Our Latest Stock Report on PayPal

About PayPal

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PayPal Holdings, Inc operates a technology platform that enables digital payments on behalf of merchants and consumers worldwide. It operates a two-sided network at scale that connects merchants and consumers that enables its customers to connect, transact, and send and receive payments through online and in person, as well as transfer and withdraw funds using various funding sources, such as bank accounts, PayPal or Venmo account balance, PayPal and Venmo branded credit products comprising its installment products, credit and debit cards, and cryptocurrencies, as well as other stored value products, including gift cards and eligible rewards.

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