PayPal Holdings, Inc. $PYPL Stock Sold by Grandfield & Dodd LLC

Grandfield & Dodd LLC cut its holdings in PayPal Holdings, Inc. (NASDAQ:PYPL) by 4.0% during the third quarter, HoldingsChannel.com reports. The institutional investor owned 367,656 shares of the credit services provider’s stock after selling 15,391 shares during the period. Grandfield & Dodd LLC’s holdings in PayPal were worth $19,313,000 at the end of the most recent reporting period.

Other hedge funds have also recently made changes to their positions in the company. BlackRock Inc. bought a new position in shares of PayPal in the 2nd quarter valued at about $3,236,989,000. Bank of America Corp DE grew its position in PayPal by 67.9% in the first 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 acquiring an additional 10,356,256 shares in the last quarter. Amundi grew its position in PayPal by 227.6% in the first quarter. Amundi now owns 13,804,208 shares of the credit services provider’s stock worth $624,364,000 after acquiring an additional 9,590,488 shares in the last quarter. Primecap Management Co. CA bought a new stake in PayPal during the second quarter worth approximately $422,092,000. Finally, Dimensional Fund Advisors LP increased its stake in PayPal by 4.3% during the first quarter. Dimensional Fund Advisors LP now owns 9,179,771 shares of the credit services provider’s stock worth $415,192,000 after acquiring an additional 376,530 shares during the last quarter. 68.32% of the stock is currently owned by hedge funds and other institutional investors.

Key PayPal News

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: PayPal’s earnings-call commentary highlighted progress in diversifying beyond its traditional checkout business, including growth in financial services, strong Venmo engagement, product expansion and continued cost discipline. These developments suggest improving operating execution and helped support the stock. The 5 most interesting analyst questions from PayPal’s Q3 earnings call
• Positive Sentiment: PayPal remains viewed as a potentially attractive value stock: commentary points to ongoing revenue growth, robust free cash flow and substantial share-repurchase capacity. Its relatively low valuation could provide downside support if the turnaround gains traction. Is PayPal Stock a Value or a Value Trap?
• Neutral Sentiment: KeyCorp raised its 2027 EPS forecasts for the first and third quarters but lowered its fourth-quarter estimate, leaving the overall earnings outlook mixed rather than materially changed.
• Neutral Sentiment: PayPal is included among financial-transaction companies that could benefit from resilient consumer spending, cross-border payments and strategic acquisitions. However, rising technology costs and inflation remain industry-wide risks. 5 Financial Transaction Stocks to Watch Amid Cost and Inflation Pressure
• Negative Sentiment: Barclays downgraded PayPal to Underweight and cut its price target to $53 from $56, citing slowing growth in core checkout, secular pressure on the branded button and a lower likelihood of a takeover. Barclays lowers PayPal stock to Underweight on slowing fundamentals
• Negative Sentiment: Several firms, including Canaccord Genuity, Needham, BTIG and Bernstein, maintained Hold or Neutral views, while Citigroup lowered its expectations. The broad lack of bullish analyst conviction continues to weigh on sentiment.

PayPal Stock Performance

Shares of NASDAQ:PYPL opened at $57.01 on Friday. The company has a current ratio of 1.26, a quick ratio of 1.29 and a debt-to-equity ratio of 0.56. PayPal Holdings, Inc. has a 12 month low of $38.46 and a 12 month high of $70.35. The company has a market capitalization of $47.36 billion, a price-to-earnings ratio of 10.88, a PEG ratio of 1.21 and a beta of 1.27. The firm’s 50-day moving average is $55.36 and its 200 day moving average is $50.04.

PayPal (NASDAQ:PYPL) last announced its quarterly earnings data on Tuesday, October 27th. The credit services provider reported $1.45 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.31 by $0.14. The business had revenue of $8.58 billion during the quarter, compared to the consensus estimate of $8.71 billion. PayPal had a net margin of 13.78% and a return on equity of 24.39%. The firm’s quarterly revenue was up 2.0% compared to the same quarter last year. During the same quarter last year, the firm earned $1.34 earnings per share. Research analysts predict that PayPal Holdings, Inc. will post 5.58 EPS for the current year.

PayPal Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, December 24th. Investors of record on Friday, December 4th will be paid a dividend of $0.14 per share. This represents a $0.56 dividend on an annualized basis and a dividend yield of 1.0%. The ex-dividend date of this dividend is Friday, December 4th. PayPal’s dividend payout ratio (DPR) is currently 10.69%.

Analyst Ratings Changes

Several research firms have recently issued reports on PYPL. Needham & Company LLC reaffirmed a “hold” rating on shares of PayPal in a research note on Tuesday, October 27th. BNP Paribas Exane lifted their target price on PayPal from $43.50 to $52.00 and gave the stock a “neutral” rating in a report on Tuesday, July 21st. Cantor Fitzgerald boosted their target price on PayPal from $54.00 to $60.00 and gave the company a “neutral” rating in a research report on Monday, August 3rd. JPMorgan Chase & Co. increased their price target on PayPal from $46.00 to $65.00 and gave the company a “neutral” rating in a report on Wednesday, July 29th. Finally, BMO Capital Markets raised their price target on PayPal from $56.00 to $59.00 and gave the stock a “market perform” rating in a research report on Wednesday. Eight equities research analysts have rated the stock with a Buy rating, thirty-one have assigned a Hold rating and six have given a Sell rating to the company’s stock. According to data from MarketBeat, the company has an average rating of “Hold” and a consensus price target of $55.94.

Insider Buying and Selling

In related news, insider Frank Keller sold 732 shares of the business’s stock in a transaction on Wednesday, October 28th. The stock was sold at an average price of $55.37, for a total transaction of $40,530.84. Following the completion of the transaction, the insider owned 41,567 shares in the company, valued at $2,301,564.79. The trade was a 1.73% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Suzan Kereere sold 3,379 shares of the company’s stock in a transaction on Thursday, September 3rd. The shares were sold at an average price of $55.72, for a total value of $188,277.88. Following the completion of the transaction, the insider directly owned 30,983 shares in the company, valued at $1,726,372.76. 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. In the last three months, insiders sold 13,437 shares of company stock valued at $768,417. Insiders own 0.63% of the company’s stock.

PayPal Company Profile

PayPal Holdings, Inc operates a global digital payments platform that enables consumers and businesses to send, receive, and manage money online and through mobile devices. Its services support online checkout, peer-to-peer payments, money transfers, payment processing, invoicing, and other commerce-related transactions.

The company’s portfolio includes the PayPal and Venmo brands, Braintree’s payment processing technology, and Xoom’s international money transfer service. PayPal also offers merchant tools, digital wallets, payment solutions, and consumer financing products through its platform and related services.

PayPal traces its origins to 1998 and became an independent publicly traded company after separating from eBay in 2015.