A Look at PayPal Holdings Inc. (PYPL) Shares in the Recent Past Indicates Growth

PayPal Holdings Inc. (NASDAQ: PYPL) stock fell -3.93% on Thursday to $59.37 against a previous-day closing price of $61.80. With 24.46 million shares changed hands, the volume of the stock remained heavier than its average volume of 14.23 million shares. During the session, the Credit Services company that operates in wider Financial sector, reached to the highest price of $61.74 whereas the lowest price it dropped to was $59.31. The 52-week range on PYPL shows that it touched its highest point at $103.03 and its lowest point at $60.40 during that stretch. It currently has a 1-year price target of $94.90. Beta for the stock currently stands at 1.32.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of PYPL was down-trending over the past week, with a drop of -3.10%, but this was down by -17.61% over a month. Three-month performance dropped to -19.28% while six-month performance fell -25.70%. The stock lost -24.51% in the past year, while it has lost -16.64% so far this year. A look at the trailing 12-month EPS for PYPL yields 2.36 with Next year EPS estimates of 5.69. For the next quarter, that number is 1.16. This implies an EPS growth rate of -40.60% for this year and 14.80% for next year. EPS is expected to grow by 16.48% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 5.20%.

Float and Shares Shorts:

At present, 1.13 billion PYPL shares are outstanding with a float of 1.11 billion shares on hand for trading. On Apr 27, 2023, short shares totaled 15.53 million, which was 1.38% higher than short shares on Mar 30, 2023. In addition to Mr. Daniel H. Schulman as the firm’s Pres, CEO & Director, Ms. Gabrielle Rabinovitch J.D. serves as its Principal Accounting Officer, Sr. VP of Investor Relations & Treasurer and Acting CFO.

Institutional Ownership:

Through their ownership of 77.83% of PYPL’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 6.41% of PYPL, in contrast to 37.01% held by mutual funds. Shares owned by individuals account for 36.18%. As the largest shareholder in PYPL with 8.08% of the stake, The Vanguard Group, Inc. holds 91,413,317 shares worth 91,413,317. A second-largest stockholder of PYPL, BlackRock Fund Advisors, holds 48,465,341 shares, controlling over 4.28% of the firm’s shares. SSgA Funds Management, Inc. is the third largest shareholder in PYPL, holding 45,423,344 shares or 4.01% stake. With a 3.11% stake in PYPL, the Vanguard Total Stock Market ETF is the largest stakeholder. A total of 35,164,690 shares are owned by the mutual fund manager. The Vanguard 500 Index Fund, which owns about 2.35% of PYPL stock, is the second-largest Mutual Fund holder. It holds 26,555,337 shares valued at 2.02 billion. Invesco QQQ Trust holds 1.33% of the stake in PYPL, owning 15,000,388 shares worth 1.14 billion.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Mar 30, 2023, PYPL reported revenue of $6.81B and operating income of $854.00M. The EBITDA in the recently reported quarter was $1.21B and diluted EPS was -$0.29.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for PYPL since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With PYPL analysts setting a high price target of $160.00 and a low target of $58.00, the average target price over the next 12 months is $93.04. Based on these targets, PYPL could surge 169.5% to reach the target high and fall by -2.31% to reach the target low. Reaching the average price target will result in a growth of 56.71% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.

Summary of Insider Activity:

Insiders traded PYPL stock several times over the past three months with 29 Buys and 14 Sells. In these transactions, 616,804 shares were bought while 300,424 shares were sold. The number of buy transactions has increased to 51 while that of sell transactions has risen to 20 over the past year. The total number of shares bought during that period was 692,855 while 324,959 shares were sold.

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