Westbourne Investment Advisors Acquires Stake in PayPal Holdings

Westbourne Investment Advisors Inc. has acquired a new stake in PayPal Holdings, Inc. (NASDAQ: PYPL) during the second quarter of 2023. According to a recent filing with the Securities & Exchange Commission, the institutional investor purchased 2,900 shares valued at approximately $216,000. This investment reflects a growing interest among institutional investors in the digital payments sector.

Several other firms have also adjusted their positions in PayPal. For instance, STF Management LP increased its stake by 2.5%, now owning 15,799 shares worth around $1.17 million following the acquisition of an additional 380 shares. Similarly, Boston Partners entered a new investment in PayPal valued at $939,000, while S&CO Inc. raised its holdings by 21.9%, bringing its total to 228,104 shares valued at approximately $16.95 million. Other investors include Vise Technologies Inc., which purchased a position worth $1.45 million, and Alpha Cubed Investments LLC, increasing its stake by 16.0% to 4,330 shares valued at $322,000. Currently, institutional investors hold approximately 68.32% of PayPal’s stock.

Insider Transactions Provide Market Insight

In additional news regarding PayPal, Chief Accounting Officer Chris Natali sold 1,374 shares on October 30, 2023, at an average price of $69.13, totaling $94,984.62. Following this, insider Suzan Kereere divested 12,500 shares on November 3, 2023, for $860,875.00, reducing her ownership by 28.75%. After this sale, she holds 30,983 shares valued at around $2.13 million. Over the past three months, insiders have sold a total of 26,874 shares, amounting to $1.86 million, with insiders now owning 0.08% of the stock.

PayPal’s Financial Performance and Future Outlook

PayPal reported its third-quarter earnings on October 28, 2023, revealing earnings per share of $1.34, which exceeded analysts’ expectations of $1.20 by $0.14. The company generated revenue of $8.42 billion, surpassing forecasts of $8.21 billion. The firm’s net margin stood at 14.96%, with a return on equity of 25.64%. Year-over-year, PayPal’s revenue increased by 7.3%, compared to $1.20 earnings per share during the same quarter last year. For the upcoming quarter, PayPal has provided guidance of $1.270 to $1.310 earnings per share, while the full-year guidance is set at $5.350 to $5.390 earnings per share. Analysts anticipate PayPal will achieve an average of $5.03 earnings per share for the current fiscal year.

Additionally, the company has announced a quarterly dividend of $0.14, payable on December 10, 2023, to stockholders on record as of November 19, 2023. This equates to an annualized dividend of $0.56 and a dividend yield of 0.8%. The ex-dividend date is also set for November 19, 2023.

Wall Street analysts are optimistic about PayPal’s future performance. Recently, Seaport Res Ptn upgraded the stock from “strong sell” to “hold.” Cowen maintained a “mixed” rating, while Jefferies Financial Group raised its target price from $70.00 to $75.00, also issuing a “hold” rating. Citigroup similarly upgraded its rating to “hold.” Lastly, Royal Bank of Canada increased its price target from $88.00 to $91.00, assigning an “outperform” rating. Overall, the stock has received strong ratings, with 15 analysts17 as a Hold, and 4 as a Sell, resulting in an average rating of “Hold” and a consensus price target of $82.94.

PayPal Holdings, Inc. continues to solidify its position in the digital payments sector, operating a technology platform that facilitates transactions for merchants and consumers globally. Its extensive network allows users to send and receive payments through various methods, including bank accounts, credit and debit cards, and cryptocurrencies. As the landscape of digital finance evolves, PayPal remains a significant player in the market.