Thompson Investment Management Inc. Raises Position in PayPal Holdings, Inc. $PYPL

Thompson Investment Management Inc. raised its position in PayPal Holdings, Inc. (NASDAQ:PYPL) by 7.4% during the 2nd quarter, HoldingsChannel reports. The institutional investor owned 246,784 shares of the credit services provider’s stock after acquiring an additional 17,043 shares during the quarter. PayPal comprises about 1.2% of Thompson Investment Management Inc.’s portfolio, making the stock its 28th biggest holding. Thompson Investment Management Inc.’s holdings in PayPal were worth $10,656,000 at the end of the most recent reporting period.

Several other large investors also recently bought and sold shares of the company. Norges Bank acquired a new stake in shares of PayPal in the fourth quarter worth approximately $949,758,000. Bank of America Corp DE boosted its holdings in shares of PayPal by 67.9% during the 1st quarter. Bank of America Corp DE now owns 25,614,720 shares of the credit services provider’s stock worth $1,158,554,000 after purchasing an additional 10,356,256 shares during the last quarter. Amundi grew its position in shares of PayPal by 227.6% in the first quarter. Amundi now owns 13,804,208 shares of the credit services provider’s stock valued at $624,364,000 after purchasing an additional 9,590,488 shares in the last quarter. Vanguard Group Inc. lifted its position in PayPal by 6.5% during the fourth quarter. Vanguard Group Inc. now owns 90,376,927 shares of the credit services provider’s stock worth $5,276,205,000 after buying an additional 5,534,462 shares in the last quarter. Finally, SG Americas Securities LLC boosted its stake in PayPal by 355.1% during the first quarter. SG Americas Securities LLC now owns 4,967,170 shares of the credit services provider’s stock worth $224,665,000 after buying an additional 3,875,688 shares during the last quarter. 68.32% of the stock is currently owned by hedge funds and other institutional investors.

PayPal Trading Up 0.3%

NASDAQ PYPL opened at $59.20 on Thursday. The company has a debt-to-equity ratio of 0.55, a quick ratio of 1.29 and a current ratio of 1.29. The firm has a market cap of $50.64 billion, a price-to-earnings ratio of 11.19, a PEG ratio of 1.44 and a beta of 1.30. The firm has a 50 day simple moving average of $49.37 and a 200-day simple moving average of $47.15. PayPal Holdings, Inc. has a one year low of $38.46 and a one year high of $79.21.

PayPal (NASDAQ:PYPL) last announced its earnings results on Tuesday, July 28th. The credit services provider reported $1.38 earnings per share for the quarter, topping the consensus estimate of $1.28 by $0.10. PayPal had a net margin of 14.36% and a return on equity of 24.39%. The firm had revenue of $8.68 billion for the quarter, compared to the consensus estimate of $8.47 billion. During the same period in the prior year, the firm earned $1.40 EPS. The firm’s revenue for the quarter was up 4.8% on a year-over-year basis. Equities research analysts anticipate that PayPal Holdings, Inc. will post 5.37 EPS for the current fiscal year.

PayPal Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, September 25th. Investors of record on Friday, September 4th will be issued a $0.14 dividend. The ex-dividend date is Friday, September 4th. This represents a $0.56 dividend on an annualized basis and a yield of 0.9%. PayPal’s dividend payout ratio (DPR) is 10.59%.

Insider Transactions at PayPal

In other PayPal news, insider Suzan Kereere sold 3,379 shares of the business’s stock in a transaction that occurred on 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 transaction, the insider owned 30,983 shares in the company, valued at $1,325,762.57. The trade was a 9.83% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Frank Keller sold 4,612 shares of the stock in a transaction that occurred on Wednesday, June 3rd. The shares were sold at an average price of $42.54, for a total transaction of $196,194.48. Following the completion of the sale, the insider directly owned 41,567 shares in the company, valued at approximately $1,768,260.18. This represents a 9.99% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 10,612 shares of company stock valued at $484,534. 0.63% of the stock is currently owned by corporate insiders.

Analysts Set New Price Targets

Several research firms have weighed in on PYPL. Barclays boosted their target price on shares of PayPal from $55.00 to $57.00 and gave the company an “equal weight” rating in a report on Wednesday, July 29th. Deutsche Bank Aktiengesellschaft reaffirmed a “hold” rating and set a $45.00 price target on shares of PayPal in a research report on Wednesday, July 29th. Susquehanna upped their price objective on PayPal from $63.00 to $67.00 and gave the company a “positive” rating in a report on Wednesday, July 29th. HSBC started coverage on PayPal in a research report on Friday, July 24th. They issued a “buy” rating for the company. Finally, Argus set a $70.00 target price on PayPal in a research report on Wednesday, July 29th. Nine analysts have rated the stock with a Buy rating, thirty-four have issued a Hold rating and four have given a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus target price of $55.72.

More PayPal News

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: Venmo growth supports the recovery story. Venmo’s total payment volume is growing at a mid-teens rate, giving PayPal an important source of transaction growth. Increasing adoption of products such as payments, credit and other monetization tools could help convert that activity into faster revenue growth. PayPal’s Venmo: Can Monetization Sustain Its Mid-Teens Growth?
• Positive Sentiment: Recent earnings and operational improvements remain supportive. PayPal reported quarterly earnings of $1.38 per share, ahead of the $1.28 consensus estimate, while revenue of $8.68 billion also exceeded expectations. Commentary highlighting improvements under CEO Enrique Lores and PayPal’s strong July performance has reinforced the view that the company may be stabilizing after a difficult period. Jim Cramer Examines PayPal Holdings Performance Under Enrique Lores and M&A Speculation
• Neutral Sentiment: Valuation and M&A speculation are influencing sentiment. Analysts and commentators are debating whether PayPal remains undervalued following its recent share-price gains. Reported speculation about a potential buyout proposal has added an additional catalyst, but there is no confirmed transaction, making this a source of volatility rather than a firm fundamental driver. Is PayPal Holdings (PYPL) Undervalued After Earnings And Its Recent Share Price Jump?
• Negative Sentiment: Investors remain concerned about monetization and the sustainability of growth. Venmo’s strong payment-volume expansion will not necessarily produce comparable revenue growth unless PayPal can increase product usage and monetization. After the stock’s sharp recent advance, any evidence that revenue conversion or profitability is lagging expectations could limit further upside. PayPal’s Venmo: Can Monetization Sustain Its Mid-Teens Growth?

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.