Huntington National Bank has reduced its stake in PayPal Holdings, Inc. (NASDAQ: PYPL) by 9.8% during the second quarter of 2023, according to a report from HoldingsChannel.com. The bank now holds 122,881 shares after selling 13,291 shares in that period. As of its latest filing with the Securities and Exchange Commission, Huntington’s investment in the digital payments company is valued at approximately $9.13 million.
The adjustment comes as other institutional investors also modify their positions in PayPal. For example, AQR Capital Management LLC increased its stake by 15.8% in the first quarter, now owning 3,501,936 shares worth $224 million after acquiring an additional 476,763 shares. Similarly, Thompson Investment Management Inc. raised its holding by 2.8% in the second quarter, bringing its total to 154,991 shares valued at $11.52 million.
In addition, Allianz SE made a significant move by increasing its stake in PayPal by an impressive 281.8% during the first quarter. They now hold 30,338 shares valued at $1.98 million. New investments were also seen from Nuveen LLC, which acquired a stake valued at approximately $529,264,000. Overall, institutional investors own around 68.32% of PayPal’s stock.
Analysts’ Perspectives on PayPal
Analysts have been active in evaluating PayPal’s stock, with varied assessments emerging. Seaport Res Ptn recently upgraded its rating from “strong sell” to “hold.” Meanwhile, Rothschild & Co Redburn raised its price target from $66.00 to $70.00, assigning a “neutral” rating.
On October 29, Morgan Stanley maintained a “negative” rating, while TD Cowen increased their price target from $75.00 to $80.00, also rating it as a “hold.” Citigroup followed suit with a “hold” rating as well. Currently, 15 analysts recommend buying the stock, 17 suggest holding, and four advocate selling. According to MarketBeat.com, PayPal has an average rating of “Hold” with a price target of $83.03.
PayPal’s stock opened at $66.08 on Wednesday, reflecting a 52-week low of $55.85 and a high of $93.66. The company boasts a market capitalization of $61.83 billion and a price-to-earnings ratio of 13.24.
Recent Earnings and Dividend Announcement
The company recently reported its quarterly earnings on October 28, 2023, revealing an earnings per share (EPS) of $1.34, exceeding analysts’ expectations of $1.20 by $0.14. PayPal recorded a net margin of 14.96% and a return on equity of 25.64%. The revenue for the quarter reached $8.42 billion, surpassing estimates of $8.21 billion and reflecting a year-on-year increase of 7.3%. Guidance for Q4 2025 is set at $1.270-$1.310 EPS, while the full-year 2025 guidance is $5.350-$5.390 EPS.
In a recent announcement, PayPal declared a quarterly dividend of $0.14 per share, which will be paid out on December 10, 2023. Shareholders of record as of November 19, 2023, will be eligible for this dividend, representing an annual yield of 0.8%.
Insider trading activity has also been notable. On November 3, insider Suzan Kereere sold 12,500 shares at an average price of $68.87, totaling $860,875. Following this transaction, Kereere holds 30,983 shares valued at approximately $2.13 million.
Overall, PayPal Holdings, Inc. continues to navigate a dynamic market environment while adjusting to fluctuations in investor sentiment and operational performance. The ongoing changes in institutional holdings and analyst ratings will likely influence the company’s strategies moving forward.
