SEB Asset Management AB Makes New Investment in PayPal Holdings, Inc. $PYPL

SEB Asset Management AB purchased a new stake in shares of PayPal Holdings, Inc. (NASDAQ:PYPL) in the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund purchased 186,226 shares of the credit services provider’s stock, valued at approximately $8,423,000.

Several other hedge funds and other institutional investors have also recently made changes to their positions in PYPL. Norges Bank bought a new stake in PayPal during the fourth quarter valued at approximately $949,758,000. Vanguard Group Inc. raised its position in PayPal by 6.5% in 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 acquiring an additional 5,534,462 shares during the period. SG Americas Securities LLC raised its position in PayPal by 355.1% in 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 acquiring an additional 3,875,688 shares during the period. AQR Capital Management LLC boosted its stake in shares of PayPal by 143.4% during the 4th quarter. AQR Capital Management LLC now owns 5,089,586 shares of the credit services provider’s stock worth $297,130,000 after acquiring an additional 2,998,286 shares during the last quarter. Finally, Voloridge Investment Management LLC boosted its stake in shares of PayPal by 261.5% during the 4th quarter. Voloridge Investment Management LLC now owns 2,291,213 shares of the credit services provider’s stock worth $133,761,000 after acquiring an additional 1,657,458 shares during the last quarter. Hedge funds and other institutional investors own 68.32% of the company’s stock.

PayPal Stock Down 1.7%

Shares of PYPL stock opened at $55.85 on Wednesday. The company has a market capitalization of $49.27 billion, a price-to-earnings ratio of 10.48, a PEG ratio of 1.42 and a beta of 1.33. PayPal Holdings, Inc. has a one year low of $38.46 and a one year high of $79.50. The company’s fifty day moving average price is $45.04 and its 200-day moving average price is $47.11. The company has a debt-to-equity ratio of 0.47, a current ratio of 1.26 and a quick ratio of 1.26.

PayPal (NASDAQ:PYPL) last issued its earnings results on Tuesday, May 5th. The credit services provider reported $1.34 earnings per share for the quarter, topping the consensus estimate of $1.27 by $0.07. PayPal had a net margin of 15.00% and a return on equity of 25.02%. The company had revenue of $8.35 billion during the quarter, compared to the consensus estimate of $8.05 billion. During the same quarter in the prior year, the firm posted $1.33 EPS. PayPal’s quarterly revenue was up 7.2% compared to the same quarter last year. Sell-side analysts expect that PayPal Holdings, Inc. will post 5.32 EPS for the current fiscal year.

PayPal Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, June 25th. Stockholders of record on Thursday, June 4th were paid a $0.14 dividend. 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 10.51%.

More PayPal News

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: PayPal is now viewed as a takeover target, with Stripe and Advent reportedly offering about $60.50 per share; that premium may support the stock as investors speculate on a higher bid or a strategic break-up value. Reuters: How PayPal went from Wall Street favorite to unwilling merger target
• Positive Sentiment: Commentary from analysts and market personalities suggests the offer may be just an opening bid, reinforcing hopes that PayPal could fetch a better valuation if deal talks advance. Benzinga: Chamath Says Stripe’s PayPal Deal Is ‘a Shot Across the Bow’
• Neutral Sentiment: PayPal remains a heavily watched stock as traders assess whether the takeover chatter represents a real catalyst or just speculation around a business that still has a strategic crossroads ahead. Yahoo Finance: PayPal Holdings, Inc. Is a Trending Stock
• Neutral Sentiment: Wall Street’s near-term earnings setup is cautious, with analysts expecting second-quarter EPS to decline modestly, which could limit upside if the company fails to deliver a beat. Zacks: Earnings Preview
• Negative Sentiment: Longer-term concerns remain that PayPal has lost momentum versus rivals like Apple Pay, which helps explain why some investors see the company as a pressured turnaround story despite the takeover interest. Economic Times: How PayPal went from Wall Street favorite to unwilling merger target

Insider Transactions at PayPal

In related news, insider Suzan Kereere sold 3,379 shares of the stock in a transaction dated Wednesday, June 3rd. The stock was 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 document filed with the SEC, which can be accessed through this hyperlink. 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 that occurred on Wednesday, April 29th. The shares were 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 in the company, valued at $78,443.56. This trade represents a 45.74% 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. Insiders sold a total of 20,612 shares of company stock valued at $966,623 over the last 90 days. Company insiders own 0.63% of the company’s stock.

Wall Street Analyst Weigh In

Several equities research analysts have recently commented on PYPL shares. Deutsche Bank Aktiengesellschaft reduced their price objective on PayPal from $50.00 to $45.00 in a research note on Monday, May 11th. Clear Str upgraded PayPal to a “hold” rating in a research report on Thursday, July 16th. UBS Group boosted their price target on PayPal from $44.00 to $48.00 and gave the company a “neutral” rating in a report on Wednesday, May 6th. Canaccord Genuity Group upped their price target on PayPal from $42.00 to $55.00 and gave the stock a “hold” rating in a research report on Thursday, July 16th. Finally, Loop Capital began coverage on PayPal in a research note on Tuesday, March 31st. They issued a “hold” rating and a $46.00 price objective on the stock. Seven research analysts have rated the stock with a Buy rating, thirty-four have assigned a Hold rating and five have issued a Sell rating to the company’s stock. According to MarketBeat, the stock presently has an average rating of “Hold” and an average target price of $54.61.

PayPal Company 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.