Black Creek Investment Management Inc. Has $187.56 Million Stake in PayPal Holdings, Inc. $PYPL

Key Points

• Black Creek Investment Management boosted its PayPal stake by 16.7% in the fourth quarter, holding 3.21 million shares valued at about $187.6 million. PayPal now represents roughly 9.3% of the fund’s portfolio.
• PayPal reported better-than-expected Q1 results, with earnings of $1.34 per share versus $1.27 expected and revenue of $8.35 billion versus $8.05 billion expected. Revenue rose 7.2% year over year.
• The company also announced a quarterly dividend of $0.14 per share, payable June 25, and the stock recently traded around $41.53. Insider selling was also noted, including recent sales by executives Suzan Kereere and Frank Keller.

Black Creek Investment Management Inc. increased its position in shares of PayPal Holdings, Inc. (NASDAQ:PYPL - Free Report) by 16.7% in the fourth quarter, according to the company in its most recent disclosure with the SEC. The institutional investor owned 3,212,706 shares of the credit services provider's stock after buying an additional 459,494 shares during the quarter. PayPal accounts for about 9.3% of Black Creek Investment Management Inc.'s portfolio, making the stock its 4th biggest holding. Black Creek Investment Management Inc. owned about 0.35% of PayPal worth $187,558,000 at the end of the most recent reporting period.

A number of other hedge funds have also modified their holdings of PYPL. Norges Bank bought a new position in shares of PayPal during the fourth quarter worth about $949,758,000. Vanguard Group Inc. grew its holdings in shares of PayPal by 6.5% during the fourth quarter. Vanguard Group Inc. now owns 90,376,927 shares of the credit services provider's stock worth $5,276,205,000 after buying an additional 5,534,462 shares in the last quarter. Dimensional Fund Advisors LP grew its holdings in shares of PayPal by 35.9% during the third quarter. Dimensional Fund Advisors LP now owns 8,177,536 shares of the credit services provider's stock worth $548,520,000 after buying an additional 2,160,227 shares in the last quarter. Primecap Management Co. CA grew its holdings in shares of PayPal by 22.3% during the fourth quarter. Primecap Management Co. CA now owns 8,168,490 shares of the credit services provider's stock worth $476,876,000 after buying an additional 1,487,560 shares in the last quarter. Finally, Two Sigma Investments LP bought a new position in shares of PayPal during the third quarter worth about $97,794,000. 68.32% of the stock is currently owned by institutional investors.

PayPal Stock Up 0.7%

PYPL stock opened at $41.53 on Friday. The company has a quick ratio of 1.26, a current ratio of 1.26 and a debt-to-equity ratio of 0.47. The business has a 50 day moving average price of $45.85 and a two-hundred day moving average price of $49.93. The company has a market cap of $36.63 billion, a price-to-earnings ratio of 7.79, a P/E/G ratio of 1.04 and a beta of 1.34. PayPal Holdings, Inc. has a twelve month low of $38.46 and a twelve month high of $79.50.

PayPal (NASDAQ:PYPL - Get Free Report) last issued its earnings results on Tuesday, May 5th. The credit services provider reported $1.34 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.27 by $0.07. The business had revenue of $8.35 billion during the quarter, compared to the consensus estimate of $8.05 billion. PayPal had a net margin of 15.00% and a return on equity of 25.02%. PayPal's revenue was up 7.2% on a year-over-year basis. During the same period last year, the business posted $1.33 EPS. Analysts anticipate that PayPal Holdings, Inc. will post 5.3 EPS for the current fiscal year.

PayPal Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, June 25th. Stockholders of record on Thursday, June 4th will be paid a dividend of $0.14 per share. This represents a $0.56 annualized dividend and a dividend yield of 1.3%. The ex-dividend date is Thursday, June 4th. PayPal's payout ratio is currently 10.51%.

Insider Transactions at PayPal

In other news, insider Suzan Kereere sold 3,379 shares of PayPal stock in a transaction that occurred on Wednesday, June 3rd. The stock was sold at an average price of $42.79, for a total transaction of $144,587.41. Following the completion of the transaction, the insider directly owned 30,983 shares in the company, valued at approximately $1,325,762.57. The trade was a 9.83% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Frank Keller sold 10,732 shares of PayPal stock in a transaction that occurred on Wednesday, April 29th. The stock was sold at an average price of $49.96, for a total value of $536,170.72. Following the transaction, the insider owned 41,567 shares of the company's stock, valued at $2,076,687.32. This represents a 20.52% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 20,612 shares of company stock worth $966,623. 0.63% of the stock is owned by company insiders.

Analysts Set New Price Targets

A number of research analysts recently issued reports on PYPL shares. Daiwa Securities Group upgraded PayPal from a "hold" rating to an "outperform" rating in a report on Wednesday, May 6th. Canaccord Genuity Group reiterated a "hold" rating and set a $42.00 price objective on shares of PayPal in a report on Wednesday, May 20th. KGI Securities reiterated a "hold" rating and set a $55.00 price objective on shares of PayPal in a report on Monday, March 2nd. Citigroup increased their price objective on PayPal from $42.00 to $48.00 and gave the stock a "neutral" rating in a report on Wednesday, April 8th. Finally, Bank of America decreased their price target on PayPal from $55.00 to $53.00 and set a "neutral" rating for the company in a research note on Wednesday, May 6th. Eight research analysts have rated the stock with a Buy rating, thirty-two have assigned a Hold rating and five have assigned a Sell rating to the company. Based on data from MarketBeat, the stock has an average rating of "Hold" and a consensus price target of $55.85.

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.

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