Investors Sell Paypal (PYPL) on Strength After Analyst Downgrade

Traders sold shares of Paypal Holdings Inc (NASDAQ:PYPL) on strength during trading on Friday after SunTrust Banks lowered their price target on the stock to $88.00. $581.18 million flowed into the stock on the tick-up and $661.78 million flowed out of the stock on the tick-down, for a money net flow of $80.60 million out of the stock. Of all equities tracked, Paypal had the 6th highest net out-flow for the day. Paypal traded up $7.30 for the day and closed at $84.78

A number of other research firms have also recently issued reports on PYPL. Berenberg Bank began coverage on Paypal in a research report on Thursday, August 30th. They issued a “buy” rating and a $104.00 price objective for the company. BidaskClub raised Paypal from a “buy” rating to a “strong-buy” rating in a research report on Friday, August 31st. Zacks Investment Research cut Paypal from a “buy” rating to a “hold” rating in a research report on Wednesday, July 25th. Raymond James raised Paypal from a “market perform” rating to an “outperform” rating and set a $108.00 price objective for the company in a research report on Friday, September 14th. Finally, KeyCorp reaffirmed an “overweight” rating and issued a $100.00 price objective (up from $95.00) on shares of Paypal in a research report on Wednesday, July 25th. One investment analyst has rated the stock with a sell rating, seven have given a hold rating and thirty-four have issued a buy rating to the company. The stock presently has an average rating of “Buy” and a consensus target price of $92.65.

In related news, COO William J. Ready sold 38,878 shares of Paypal stock in a transaction that occurred on Friday, July 27th. The stock was sold at an average price of $88.22, for a total transaction of $3,429,817.16. Following the completion of the sale, the chief operating officer now directly owns 119,215 shares of the company’s stock, valued at approximately $10,517,147.30. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, CFO John D. Rainey sold 5,462 shares of Paypal stock in a transaction that occurred on Friday, July 27th. The stock was sold at an average price of $88.22, for a total value of $481,857.64. Following the sale, the chief financial officer now directly owns 113,307 shares of the company’s stock, valued at $9,995,943.54. The disclosure for this sale can be found here. Over the last three months, insiders have sold 149,732 shares of company stock valued at $13,204,157. 0.20% of the stock is currently owned by insiders.

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Abner Herrman & Brock LLC raised its holdings in Paypal by 1.5% in the 3rd quarter. Abner Herrman & Brock LLC now owns 269,448 shares of the credit services provider’s stock valued at $23,668,000 after acquiring an additional 4,011 shares in the last quarter. Cullinan Associates Inc. raised its holdings in Paypal by 10.9% in the 3rd quarter. Cullinan Associates Inc. now owns 95,338 shares of the credit services provider’s stock valued at $8,374,000 after acquiring an additional 9,400 shares in the last quarter. American Financial Network Advisory Services LLC raised its holdings in Paypal by 7,103.4% in the 3rd quarter. American Financial Network Advisory Services LLC now owns 6,339 shares of the credit services provider’s stock valued at $557,000 after acquiring an additional 6,251 shares in the last quarter. Lodestar Investment Counsel LLC IL acquired a new position in Paypal in the 3rd quarter valued at $206,000. Finally, Seven Eight Capital LP acquired a new position in Paypal in the 3rd quarter valued at $15,960,000. 79.71% of the stock is owned by hedge funds and other institutional investors.

The firm has a market cap of $94.80 billion, a price-to-earnings ratio of 60.45, a price-to-earnings-growth ratio of 2.60 and a beta of 1.31.

Paypal (NASDAQ:PYPL) last announced its quarterly earnings data on Thursday, October 18th. The credit services provider reported $0.58 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $0.54 by $0.04. The firm had revenue of $3.68 billion during the quarter, compared to analysts’ expectations of $3.66 billion. Paypal had a return on equity of 12.91% and a net margin of 14.02%. The company’s quarterly revenue was up 13.7% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.46 EPS. On average, equities research analysts predict that Paypal Holdings Inc will post 1.74 EPS for the current fiscal year.

About Paypal (NASDAQ:PYPL)

PayPal Holdings, Inc operates as a technology platform company that enables digital and mobile payments on behalf of consumers and merchants worldwide. Its payment solutions include PayPal, PayPal Credit, Braintree, Venmo, Xoom, and Paydiant products. The company's platform allows consumers to shop by sending payments, withdraw funds to their bank accounts, and hold balances in their PayPal accounts in various currencies.

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