Brookstone Capital Management Trims Stock Position in PayPal Holdings, Inc. $PYPL

Brookstone Capital Management lessened its stake in shares of PayPal Holdings, Inc. (NASDAQ:PYPL) by 92.5% in the 2nd quarter, HoldingsChannel.com reports. The fund owned 4,844 shares of the credit services provider’s stock after selling 60,154 shares during the period. Brookstone Capital Management’s holdings in PayPal were worth $209,000 at the end of the most recent quarter.

Other large investors have also recently modified their holdings of the company. Bard Associates Inc. bought a new position in PayPal in the fourth quarter worth approximately $25,000. Allied Private Wealth LLC purchased a new position in PayPal during the 2nd quarter worth $25,000. Robinswood Financial LLC bought a new stake in PayPal during the 1st quarter valued at $26,000. Caitong International Asset Management Co. Ltd raised its position in 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 valued at $27,000 after purchasing an additional 457 shares in the last quarter. Finally, Safe Harbor Fiduciary LLC purchased a new stake in shares of PayPal in the 4th quarter worth $28,000. Hedge funds and other institutional investors own 68.32% of the company’s stock.

Insiders Place Their Bets

In other news, CAO Chris Natali sold 1,337 shares of PayPal stock in a transaction that occurred on Wednesday, July 29th. The shares were sold at an average price of $58.10, for a total value of $77,679.70. Following the transaction, the chief accounting officer owned 2,216 shares of the company’s stock, valued at $128,749.60. The trade was a 37.63% decrease in their position. The sale was disclosed in a filing 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 business’s stock in a transaction that occurred on Wednesday, June 3rd. The stock was sold at an average price of $42.79, for a total transaction of $144,587.41. Following the transaction, 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. Additional details regarding this sale are available in the official SEC disclosure. 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 worth $484,534. 0.63% of the stock is owned by corporate insiders.

Key Stories Impacting PayPal

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?

PayPal Stock Up 0.3%

Shares of NASDAQ PYPL opened at $59.20 on Thursday. PayPal Holdings, Inc. has a 12-month low of $38.46 and a 12-month high of $79.21. The stock’s fifty day simple moving average is $49.37 and its two-hundred day simple moving average is $47.15. The stock has a market capitalization of $50.64 billion, a PE ratio of 11.19, a price-to-earnings-growth ratio of 1.44 and a beta of 1.30. The company has a current ratio of 1.29, a quick ratio of 1.29 and a debt-to-equity ratio of 0.55.

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

PayPal Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, September 25th. Shareholders 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 payout ratio is currently 10.59%.

Analyst Ratings Changes

A number of equities analysts have recently issued reports on PYPL shares. Deutsche Bank Aktiengesellschaft reissued a “hold” rating and set a $45.00 price target on shares of PayPal in a research report on Wednesday, July 29th. Canaccord Genuity Group restated a “hold” rating and issued a $55.00 price objective on shares of PayPal in a report on Wednesday, July 29th. Susquehanna upped their price objective on shares of PayPal from $63.00 to $67.00 and gave the stock a “positive” rating in a research note on Wednesday, July 29th. Mizuho increased their target price on shares of PayPal from $50.00 to $60.00 and gave the stock a “neutral” rating in a report on Wednesday, July 29th. Finally, Telsey Advisory Group downgraded shares of PayPal to a “market perform” rating in a research report on Friday, July 24th. Nine research analysts have rated the stock with a Buy rating, thirty-four have assigned a Hold rating and four have assigned a Sell rating to the stock. According to MarketBeat, the company presently has a consensus rating of “Hold” and an average target price of $55.72.

PayPal 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.