Hennessy Advisors Inc. Trims Stake in PayPal Holdings, Inc. $PYPL

Hennessy Advisors Inc. reduced its holdings in PayPal Holdings, Inc. (NASDAQ:PYPL) by 19.6% during the second quarter, Holdings Channel.com reports. The fund owned 50,600 shares of the credit services provider’s stock after selling 12,300 shares during the quarter. Hennessy Advisors Inc.’s holdings in PayPal were worth $2,185,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds have also recently modified their holdings of the business. Bard Associates Inc. purchased a new position in shares of PayPal during the fourth quarter worth about $25,000. Allied Private Wealth LLC purchased a new stake in PayPal in the second quarter valued at approximately $25,000. Robinswood Financial LLC bought a new stake in PayPal during the first quarter valued at approximately $26,000. Caitong International Asset Management Co. Ltd lifted its position in PayPal by 15,233.3% during the fourth 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 during the last quarter. Finally, Mowery & Schoenfeld Wealth Management LLC purchased a new position in PayPal in the 2nd quarter worth approximately $27,000. Hedge funds and other institutional investors own 68.32% of the company’s stock.

PayPal News Summary

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: Some market observers argue that PayPal’s board protected potentially greater long-term shareholder value by rejecting the reported $60.50-per-share offer, which valued the company at approximately $53 billion. Options pricing also continues to indicate a bullish bias among some traders. PayPal Drops 12% Overnight on Dead Stripe Deal
• Positive Sentiment: PayPal remains an independent turnaround story, with recent initiatives expanding PayPal and Venmo tuition-payment integrations through campus platforms. Investors will now focus more closely on whether management can improve growth and execution without takeover support. PayPal Tuition Payment Push
• Neutral Sentiment: The failed transaction removes a major change-of-control catalyst and returns attention to PayPal’s standalone fundamentals. The company recently exceeded quarterly earnings and revenue expectations, but revenue growth remained modest and earnings per share declined year over year, leaving execution of its turnaround as the key valuation driver.
• Negative Sentiment: The reported withdrawal eliminates the takeover premium that had supported PYPL during weeks of deal speculation. Reports cited valuation concerns, regulatory hurdles and a breakdown in negotiations; the abrupt reversal has therefore prompted investors to reassess PayPal at its lower standalone valuation. PayPal Shares Fall After Consortium Abandons Takeover Pursuit
• Negative Sentiment: Analysts, including Mizuho, are highlighting risks facing PayPal after the deal collapsed. The heavy trading volume and test of the 50-day moving average indicate heightened uncertainty as investors await evidence that the company can generate sufficient growth independently. Why PayPal Stock Is Down and What Mizuho Thinks Comes Next

Insiders Place Their Bets

In other PayPal news, insider Suzan Kereere sold 4,162 shares of the business’s stock in a transaction that occurred on Tuesday, August 18th. The stock was sold at an average price of $60.96, for a total value of $253,715.52. Following the completion of the sale, the insider 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 sale 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 the 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 sale, the chief accounting officer directly owned 2,216 shares of the company’s stock, valued at approximately $128,749.60. This trade represents a 37.63% 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 have sold 14,774 shares of company stock valued at $738,249 in the last ninety days. Company insiders own 0.63% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently commented on the stock. Needham & Company LLC reissued a “hold” rating on shares of PayPal in a report on Tuesday, May 5th. Deutsche Bank Aktiengesellschaft reiterated a “hold” rating and issued a $45.00 target price on shares of PayPal in a research report on Wednesday, July 29th. Bank of America lowered their price target on PayPal from $55.00 to $53.00 and set a “neutral” rating on the stock in a research report on Wednesday, May 6th. Wells Fargo & Company lifted their price target on PayPal from $48.00 to $56.00 and gave the stock an “equal weight” rating in a research note on Wednesday, July 29th. Finally, UBS Group set a $45.00 price objective on PayPal in a 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 company. According to MarketBeat.com, PayPal has a consensus rating of “Hold” and an average target price of $56.14.

PayPal Stock Performance

PayPal stock opened at $53.66 on Monday. The firm has a fifty day simple moving average of $53.88 and a two-hundred day simple moving average of $48.16. The company has a quick ratio of 1.29, a current ratio of 1.29 and a debt-to-equity ratio of 0.55. PayPal Holdings, Inc. has a twelve month low of $38.46 and a twelve month high of $79.21. The company has a market capitalization of $45.90 billion, a PE ratio of 10.14, a P/E/G ratio of 1.31 and a beta of 1.29.

PayPal (NASDAQ:PYPL) last announced its quarterly earnings data on Tuesday, July 28th. The credit services provider reported $1.38 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.28 by $0.10. The firm had revenue of $8.68 billion for the quarter, compared to analysts’ expectations of $8.47 billion. PayPal had a return on equity of 24.39% and a net margin of 14.36%.The company’s revenue for the quarter was up 4.8% compared to the same quarter last year. During the same period last year, the firm earned $1.40 earnings per share. Research analysts expect that PayPal Holdings, Inc. will post 5.38 EPS for the current year.

PayPal Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, September 25th. Investors of record on Friday, September 4th will be given a dividend of $0.14 per share. This represents a $0.56 annualized dividend and a yield of 1.0%. The ex-dividend date is Friday, September 4th. PayPal’s dividend payout ratio (DPR) is presently 10.59%.

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.