Front Street Capital Management Inc. Acquires New Stake in PayPal Holdings, Inc. $PYPL

Front Street Capital Management Inc. purchased a new position in shares of PayPal Holdings, Inc. (NASDAQ:PYPL) in the second quarter, according to the company in its most recent disclosure with the SEC. The institutional investor purchased 8,590 shares of the credit services provider’s stock, valued at approximately $391,000.

Several other institutional investors and hedge funds have also recently added to or reduced their stakes in the business. Vanguard Group Inc. boosted its holdings in shares of PayPal by 6.5% in the 4th quarter. Vanguard Group Inc. now owns 90,376,927 shares of the credit services provider’s stock valued at $5,276,205,000 after buying an additional 5,534,462 shares during the last quarter. Rule One Partners LLC bought a new stake in PayPal during the fourth quarter worth $2,043,000. Mitsubishi UFJ Asset Management Co. Ltd. acquired a new stake in PayPal in the second quarter valued at $97,372,000. S&CO Inc. acquired a new stake in PayPal in the second quarter valued at $18,827,000. Finally, Swiss National Bank grew its position in shares of PayPal by 4.9% in the 1st quarter. Swiss National Bank now owns 2,608,600 shares of the credit services provider’s stock valued at $117,987,000 after acquiring an additional 121,400 shares during the period. 68.32% of the stock is owned by institutional investors.

PayPal Stock Performance

NASDAQ:PYPL opened at $61.68 on Tuesday. The stock has a 50 day simple moving average of $52.51 and a 200 day simple moving average of $47.62. The stock has a market cap of $52.76 billion, a P/E ratio of 11.66, a PEG ratio of 1.50 and a beta of 1.29. PayPal Holdings, Inc. has a 1-year low of $38.46 and a 1-year high of $79.21. 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 posted its quarterly earnings data 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 return on equity of 24.39% and a net margin of 14.36%.The firm had revenue of $8.68 billion for the quarter, compared to analysts’ expectations of $8.47 billion. During the same quarter last year, the business earned $1.40 EPS. The company’s quarterly revenue was up 4.8% compared to the same quarter last year. Research analysts anticipate that PayPal Holdings, Inc. will post 5.38 earnings per share for the current year.

PayPal Announces Dividend

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

Insider Buying and Selling at PayPal

In other news, insider Suzan Kereere sold 4,162 shares of PayPal stock in a transaction that occurred on Tuesday, August 18th. The shares were sold at an average price of $60.96, for a total value of $253,715.52. Following the completion of the sale, the insider directly owned 30,983 shares in the company, valued at approximately $1,888,723.68. The trade was a 11.84% decrease in their ownership of the stock. The transaction 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 Frank Keller sold 732 shares of the business’s 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 $42,529.20. Following the completion of the sale, the insider owned 41,567 shares of the company’s stock, valued at approximately $2,415,042.70. This trade represents a 1.73% 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. Insiders sold 14,774 shares of company stock valued at $738,249 in the last quarter. Company insiders own 0.63% of the company’s stock.

Wall Street Analyst Weigh In

A number of equities research analysts have recently issued reports on the stock. BNP Paribas Exane upped their target price on shares of PayPal from $43.50 to $52.00 and gave the company a “neutral” rating in a report on Tuesday, July 21st. Truist Financial boosted their price target on PayPal from $59.00 to $62.00 and gave the stock a “hold” rating in a research report on Wednesday, August 19th. Argus set a $70.00 price objective on PayPal in a research report on Wednesday, July 29th. HSBC initiated coverage on PayPal in a research note on Friday, July 24th. They set a “buy” rating for the company. Finally, Keefe, Bruyette & Woods boosted their target price on PayPal from $55.00 to $70.00 and gave the stock an “outperform” rating in a report on Wednesday, July 29th. Nine research analysts have rated the stock with a Buy rating, thirty-four have given a Hold rating and four have issued a Sell rating to the stock. According to MarketBeat.com, the company has a consensus rating of “Hold” and an average price target of $56.28.

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.