PayPal (NASDAQ:PYPL) Trading 2.2% Higher Following Analyst Upgrade

PayPal Holdings, Inc. (NASDAQ:PYPL) shares traded up 2.2% during trading on Thursday after Clear Str upgraded the stock to a hold rating. The company traded as high as $57.67 and last traded at $56.73. Approximately 33,195,157 shares were traded during trading, an increase of 67% from the average session volume of 19,850,676 shares. The stock had previously closed at $55.52.

Other equities analysts have also recently issued reports about the stock. Mizuho restated a “neutral” rating and set a $50.00 price target (down from $60.00) on shares of PayPal in a report on Thursday, April 16th. Barclays upgraded PayPal from an “underweight” rating to an “equal weight” rating and increased their price objective for the stock from $42.00 to $55.00 in a report on Thursday. BTIG Research reissued a “neutral” rating on shares of PayPal in a research report on Wednesday. Bank of America lowered their target price on PayPal from $55.00 to $53.00 and set a “neutral” rating on the stock in a research note on Wednesday, May 6th. Finally, Needham & Company LLC reaffirmed a “hold” rating on shares of PayPal in a research report on Tuesday, May 5th. Seven research analysts have rated the stock with a Buy rating, thirty-four have assigned a Hold rating and five have given a Sell rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus price target of $54.61.

Insiders Place Their Bets

In related news, insider Frank Keller sold 4,612 shares of PayPal stock in a transaction on Wednesday, June 3rd. The shares were sold at an average price of $42.54, for a total value of $196,194.48. Following the completion of the sale, the insider owned 41,567 shares of the company’s stock, valued at approximately $1,768,260.18. The trade was a 9.99% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Suzan Kereere sold 3,379 shares of the company’s stock in a transaction dated Wednesday, June 3rd. The stock was sold at an average price of $42.79, for a total value of $144,587.41. Following the sale, the insider owned 30,983 shares of the company’s stock, valued at approximately $1,325,762.57. This trade represents a 9.83% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 20,612 shares of company stock valued at $966,623 over the last ninety days. Corporate insiders own 0.63% of the company’s stock.

Key Headlines Impacting PayPal

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: The reported takeover interest from Stripe and Advent has fueled speculation that PayPal could be worth more than the current offer, with several analysts and investors arguing the bid is too low. Reuters: PayPal board sees Stripe-Advent offer as inadequate, sources say
• Positive Sentiment: Some market commentary suggests the bid could force a higher valuation for PYPL, potentially supporting further upside if negotiations continue or a competing offer emerges. Yahoo Finance: Cantor sees potential for higher PayPal offer as analysis suggests $70/share value
• Neutral Sentiment: PayPal’s board has reportedly not formally responded yet, so the deal is still early-stage and subject to negotiation, financing, and regulatory risk. Yahoo Finance weekly review
• Negative Sentiment: The board is said to view the $53 billion proposal as inadequate, which could mean a longer path to any deal or no deal at all if a higher price does not materialize. PYMNTS: PayPal Board Calls $53 Billion Stripe-Advent Bid Inadequate

Institutional Trading of PayPal

Several hedge funds have recently added to or reduced their stakes in PYPL. Hickory Point Bank & Trust grew its stake in shares of PayPal by 137.9% in the second quarter. Hickory Point Bank & Trust now owns 690 shares of the credit services provider’s stock worth $30,000 after acquiring an additional 400 shares during the last quarter. Formidable Asset Management LLC increased its stake in PayPal by 17.3% in the second quarter. Formidable Asset Management LLC now owns 30,436 shares of the credit services provider’s stock valued at $1,377,000 after acquiring an additional 4,499 shares during the period. Ballentine Partners LLC lifted its position in shares of PayPal by 9.5% during the 2nd quarter. Ballentine Partners LLC now owns 8,686 shares of the credit services provider’s stock worth $375,000 after buying an additional 753 shares during the period. Camelot Portfolios LLC lifted its holdings in shares of PayPal by 14.6% during the second quarter. Camelot Portfolios LLC now owns 24,120 shares of the credit services provider’s stock valued at $1,042,000 after acquiring an additional 3,080 shares during the period. Finally, Old North State Wealth Management LLC boosted its position in PayPal by 1.8% in the second quarter. Old North State Wealth Management LLC now owns 92,435 shares of the credit services provider’s stock valued at $3,994,000 after buying an additional 1,597 shares in the last quarter. Institutional investors own 68.32% of the company’s stock.

PayPal Stock Performance

The stock has a 50-day moving average of $44.60 and a 200 day moving average of $47.23. 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 firm has a market capitalization of $49.89 billion, a P/E ratio of 10.61, a price-to-earnings-growth ratio of 1.42 and a beta of 1.33.

PayPal (NASDAQ:PYPL) last issued its quarterly earnings results on Tuesday, May 5th. The credit services provider reported $1.34 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.27 by $0.07. PayPal had a net margin of 15.00% and a return on equity of 25.02%. The business had revenue of $8.35 billion for the quarter, compared to the consensus estimate of $8.05 billion. During the same quarter in the prior year, the company earned $1.33 EPS. The firm’s quarterly revenue was up 7.2% on a year-over-year basis. On average, research analysts anticipate that PayPal Holdings, Inc. will post 5.32 earnings per share for the current year.

PayPal Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Thursday, June 25th. Investors of record on Thursday, June 4th were issued a $0.14 dividend. The ex-dividend date was Thursday, June 4th. This represents a $0.56 annualized dividend and a yield of 1.0%. PayPal’s dividend payout ratio (DPR) is currently 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.