Stock Traders Purchase High Volume of PayPal Call Options (NASDAQ:PYPL)

PayPal Holdings, Inc. (NASDAQ:PYPL) was the target of some unusual options trading activity on Monday. Traders acquired 109,935 call options on the stock. This is an increase of approximately 37% compared to the typical volume of 80,128 call options.

Key PayPal News

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: Goldman Sachs raised its price target on PayPal to $48 from $41, which can support sentiment even though the firm kept a Sell rating. Goldman Sachs Raises PayPal (PYPL) Price Target
• Positive Sentiment: PayPal expanded its UK buy now, pay later offering with “Pay in 30 Days,” giving it another product to drive checkout adoption ahead of new regulations. PayPal Expands UK BNPL Offering Ahead of New Regulations
• Positive Sentiment: Recent trading activity showed unusual call-option buying in PYPL, suggesting some traders are positioning for upside.

PayPal Stock Performance

Shares of PYPL stock opened at $47.37 on Wednesday. The firm has a 50 day moving average of $43.98 and a two-hundred day moving average of $47.22. The stock has a market capitalization of $41.79 billion, a PE ratio of 8.89, a P/E/G ratio of 1.19 and a beta of 1.33. The company has a quick ratio of 1.26, a current ratio of 1.26 and a debt-to-equity ratio of 0.47. PayPal has a 52 week low of $38.46 and a 52 week high of $79.50.

PayPal (NASDAQ:PYPL) last announced its quarterly earnings data on Tuesday, May 5th. The credit services provider reported $1.34 earnings per share (EPS) for the quarter, beating 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 for the quarter, compared to analysts’ expectations of $8.05 billion. During the same period last year, the firm earned $1.33 earnings per share. The company’s revenue for the quarter was up 7.2% compared to the same quarter last year. On average, research analysts predict that PayPal will post 5.32 EPS for the current fiscal year.

PayPal Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Thursday, June 25th. Stockholders of record on Thursday, June 4th were given a dividend of $0.14 per share. The ex-dividend date of this dividend was Thursday, June 4th. This represents a $0.56 dividend on an annualized basis and a dividend yield of 1.2%. PayPal’s payout ratio is currently 10.51%.

Insider Transactions at PayPal

In related news, insider Suzan Kereere sold 3,379 shares of the stock in a transaction that occurred on Wednesday, June 3rd. The stock was sold at an average price of $42.79, for a total value of $144,587.41. Following the completion of the transaction, the insider directly owned 30,983 shares in the company, valued at approximately $1,325,762.57. This represents a 9.83% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Chris Natali sold 1,337 shares of the firm’s stock in a transaction on 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 approximately $78,443.56. This trade represents a 45.74% 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 worth $966,623 in the last 90 days. Insiders own 0.63% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the company. Bard Associates Inc. purchased a new stake in shares of PayPal during the 4th quarter worth $25,000. Allied Private Wealth LLC acquired a new position in shares of PayPal during the 2nd quarter worth about $25,000. Robinswood Financial LLC purchased a new position in shares of PayPal in the 1st quarter valued at about $26,000. Caitong International Asset Management Co. Ltd raised its position in shares of PayPal by 15,233.3% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 460 shares of the credit services provider’s stock worth $27,000 after acquiring an additional 457 shares in the last quarter. Finally, Safe Harbor Fiduciary LLC purchased a new stake in PayPal during the fourth quarter worth approximately $28,000. Hedge funds and other institutional investors own 68.32% of the company’s stock.

Analyst Upgrades and Downgrades

A number of analysts recently issued reports on PYPL shares. BMO Capital Markets assumed coverage on PayPal in a research report on Tuesday, April 21st. They set a “market perform” rating and a $52.00 price objective for the company. Needham & Company LLC reiterated a “hold” rating on shares of PayPal in a research report on Tuesday, May 5th. BNP Paribas Exane boosted their price target on shares of PayPal from $41.00 to $43.50 and gave the company a “neutral” rating in a research note on Friday, April 10th. Deutsche Bank Aktiengesellschaft decreased their price objective on shares of PayPal from $50.00 to $45.00 in a report on Monday, May 11th. Finally, Weiss Ratings reaffirmed a “hold (c-)” rating on shares of PayPal in a research report on Friday, May 8th. Seven analysts have rated the stock with a Buy rating, thirty-two have issued a Hold rating and six have issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Hold” and an average target price of $53.91.

About PayPal

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.