Prospect Financial Services LLC Invests $373,000 in PayPal Holdings, Inc. $PYPL

Prospect Financial Services LLC bought a new position in PayPal Holdings, Inc. (NASDAQ:PYPL) during the second quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor bought 8,644 shares of the credit services provider’s stock, valued at approximately $373,000.

Several other large investors have also added to or reduced their stakes in the business. Bard Associates Inc. bought a new stake in PayPal during the 4th quarter worth approximately $25,000. Allied Private Wealth LLC bought a new position in shares of PayPal in the second quarter valued at approximately $25,000. Robinswood Financial LLC bought a new position in shares of PayPal in the first quarter valued at approximately $26,000. Caitong International Asset Management Co. Ltd boosted its position in shares of PayPal by 15,233.3% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 460 shares of the credit services provider’s stock valued at $27,000 after buying an additional 457 shares during the last quarter. Finally, Safe Harbor Fiduciary LLC purchased a new position in shares of PayPal during the fourth quarter valued at approximately $28,000. Institutional investors own 68.32% of the company’s stock.

PayPal Stock Performance

Shares of PYPL opened at $61.67 on Friday. The company has a current ratio of 1.29, a quick ratio of 1.29 and a debt-to-equity ratio of 0.55. The company has a market capitalization of $52.76 billion, a price-to-earnings ratio of 11.66, a PEG ratio of 1.51 and a beta of 1.30. The stock has a 50 day moving average of $50.13 and a 200 day moving average of $47.28. PayPal Holdings, Inc. has a 12 month low of $38.46 and a 12 month high of $79.21.

PayPal (NASDAQ:PYPL) last issued its quarterly earnings results on Tuesday, July 28th. The credit services provider reported $1.38 EPS for the quarter, topping analysts’ consensus estimates of $1.28 by $0.10. PayPal had a return on equity of 24.39% and a net margin of 14.36%.The business had revenue of $8.68 billion for the quarter, compared to analyst estimates of $8.47 billion. During the same period last year, the company posted $1.40 earnings per share. PayPal’s quarterly revenue was up 4.8% compared to the same quarter last year. As a group, sell-side analysts forecast that PayPal Holdings, Inc. will post 5.37 earnings per share for the current year.

PayPal Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, September 25th. Stockholders of record on Friday, September 4th will be paid a dividend of $0.14 per share. This represents a $0.56 dividend on an annualized basis and a dividend yield of 0.9%. The ex-dividend date is Friday, September 4th. PayPal’s payout ratio is presently 10.59%.

Analyst Ratings Changes

PYPL has been the subject of several recent research reports. Keefe, Bruyette & Woods upped their price target on PayPal from $55.00 to $70.00 and gave the stock an “outperform” rating in a report on Wednesday, July 29th. The Goldman Sachs Group set a $50.00 price objective on shares of PayPal in a report on Tuesday, July 28th. Argus set a $70.00 target price on shares of PayPal in a research note on Wednesday, July 29th. BTIG Research reiterated a “neutral” rating on shares of PayPal in a report on Wednesday, July 15th. Finally, Royal Bank Of Canada raised their price target on shares of PayPal from $59.00 to $65.00 and gave the company an “outperform” rating in a research report on Wednesday, July 29th. Nine equities research analysts have rated the stock with a Buy rating, thirty-four have assigned a Hold rating and four have issued a Sell rating to the stock. According to data from MarketBeat, the stock presently has an average rating of “Hold” and an average price target of $55.72.

More PayPal News

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: Renewed takeover discussions provided the main catalyst. PayPal is reportedly in early negotiations to sell itself to a group involving Stripe and private-equity firm Advent International. The parties are said to be considering a higher valuation than an earlier offer, although discussions remain preliminary and no deal is assured. PayPal Stock Rises on Report of Stripe, Advent Buyout Talks
• Positive Sentiment: A $1.5 billion cost-savings plan could support earnings. PayPal intends to use artificial intelligence, operational changes and a simpler organizational structure to reduce expenses, potentially improving profitability while freeing resources for future growth. PayPal Cost Savings: Will $1.5B Plan Reshape Profitability?
• Positive Sentiment: Venmo remains a potential growth and monetization engine. Venmo is generating mid-teens total payment volume growth, but the investment case increasingly depends on PayPal converting expanding user activity and product adoption into revenue. PayPal’s Venmo: Can Monetization Sustain Its Mid-Teens Growth?
• Neutral Sentiment: Recent profit improvement may already be reflected in company disclosures. Commentary highlighted a shift toward businesses that are supporting PayPal’s recovery, but suggested the underlying drivers were previously identified in management reports rather than representing a wholly new development. PayPal Stock Surged On a Profit Shift Management Had Already Spelled Out
• Negative Sentiment: Longer-term investor concerns remain. Despite recurring payment-volume growth, PayPal’s shares remain far below their record level, reflecting doubts about revenue conversion, competitive pressure and the company’s ability to sustain growth. PayPal Grows Its Volume Every Year. Here’s Why the Stock Doesn’t Always Follow

Insider Buying and Selling

In related news, insider Suzan Kereere sold 3,379 shares of the firm’s stock in a transaction dated Wednesday, June 3rd. The shares were sold at an average price of $42.79, for a total transaction of $144,587.41. Following the completion of the sale, the insider owned 30,983 shares in the company, valued at approximately $1,325,762.57. This trade represents a 9.83% decrease in their ownership of the stock. The transaction was disclosed in a 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 PayPal stock in a transaction dated Wednesday, July 29th. The stock was sold at an average price of $58.10, for a total transaction of $77,679.70. Following the completion of the sale, the chief accounting officer directly owned 2,216 shares in the company, valued at approximately $128,749.60. This represents a 37.63% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 10,612 shares of company stock valued at $484,534. 0.63% of the stock is owned by insiders.

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.