PayPal (NASDAQ:PYPL) Upgraded by Clear Str to “Hold” Rating

Clear Str upgraded shares of PayPal (NASDAQ:PYPL) to a hold rating in a research report report published on Thursday morning,Zacks.com reports.

Several other research firms have also issued reports on PYPL. Needham & Company LLC reaffirmed a “hold” rating on shares of PayPal in a research note on Tuesday, May 5th. BNP Paribas Exane boosted their target price on PayPal from $41.00 to $43.50 and gave the company a “neutral” rating in a research report on Friday, April 10th. Daiwa Securities Group upgraded PayPal from a “hold” rating to an “outperform” rating in a research report on Wednesday, May 6th. Citigroup lifted their price objective on shares of PayPal from $42.00 to $48.00 and gave the stock a “neutral” rating in a research note on Wednesday, April 8th. Finally, Zacks Research upgraded shares of PayPal from a “strong sell” rating to a “hold” rating in a research report on Friday, April 17th. Seven investment analysts have rated the stock with a Buy rating, thirty-four have given a Hold rating and five have assigned a Sell rating to the company. According to MarketBeat.com, the stock currently has an average rating of “Hold” and an average price target of $54.61.

PayPal Stock Up 2.2%

Shares of NASDAQ PYPL opened at $56.73 on Thursday. The company has a current ratio of 1.26, a quick ratio of 1.26 and a debt-to-equity ratio of 0.47. PayPal has a 12-month low of $38.46 and a 12-month high of $79.50. The firm’s 50-day moving average price is $44.37 and its 200-day moving average price is $47.16. The stock has a market capitalization of $50.04 billion, a price-to-earnings ratio of 10.64, a P/E/G ratio of 1.39 and a beta of 1.33.

PayPal (NASDAQ:PYPL) last released its quarterly earnings results on Tuesday, May 5th. The credit services provider reported $1.34 EPS 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 company had revenue of $8.35 billion during the quarter, compared to analyst estimates of $8.05 billion. During the same quarter last year, the business posted $1.33 earnings per share. The firm’s revenue was up 7.2% on a year-over-year basis. On average, equities research analysts anticipate that PayPal will post 5.32 EPS for the current fiscal year.

PayPal Dividend Announcement

The company also recently declared 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 1.0%. PayPal’s dividend payout ratio is presently 10.51%.

Insider Transactions at PayPal

In related news, insider Suzan Kereere sold 3,379 shares of the company’s stock in a transaction dated Wednesday, June 3rd. The shares were sold at an average price of $42.79, for a total value of $144,587.41. Following the completion of the sale, the insider directly owned 30,983 shares of the company’s stock, valued at $1,325,762.57. This represents a 9.83% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Frank Keller sold 10,732 shares of the 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 transaction, the insider owned 41,567 shares in the company, valued at approximately $2,076,687.32. The trade was a 20.52% decrease in their ownership of the stock. 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 90 days, insiders have sold 20,612 shares of company stock valued at $966,623. 0.63% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

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

Key PayPal News

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: PayPal surged after reports that Stripe and Advent made a $53 billion acquisition offer at $60.50 per share, creating a takeover premium and boosting investor optimism. Reuters: Stripe, Advent offer to buy PayPal for more than $53 billion
• Positive Sentiment: Analysts and investors are arguing the bid undervalues PayPal, with some estimates pointing to a higher fair value around $70 a share or more, which keeps takeover speculation alive. Article: Cantor sees potential for higher PayPal offer as analysis suggests $70/share value
• Neutral Sentiment: Barclays raised its price target to $55 and Canaccord lifted its target to $55, signaling some improvement in outlook, though both targets remain below the recent trading level. Article: Paypal (PYPL) Gains As Market Dips: What You Should Know
• Neutral Sentiment: PayPal’s board is reportedly viewing the Stripe-Advent proposal as inadequate, suggesting negotiations could continue and the final outcome is still uncertain. Reuters: PayPal board sees Stripe-Advent offer as inadequate, sources say
• Negative Sentiment: Regulatory and financing hurdles could complicate or delay any deal, which may temper some of the takeover enthusiasm if no quick resolution emerges. Reuters: PayPal board sees Stripe-Advent offer as inadequate, sources say

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.