PayPal Holdings Inc. [NASDAQ: PYPL] loss -2.18% on the last trading session, reaching $73.55 price per share at the time. The company report on February 24, 2023 that PayPal Recommends Stockholders Reject Mini-tender Offer by TRC Capital Corporation.
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PayPal Holdings, Inc. (NASDAQ: PYPL) has been notified of an unsolicited mini-tender offer by TRC Capital Corporation (TRC) to purchase up to up to 2,000,000 shares of PayPal common stock, representing significantly less than one percent of PayPal’s common stock outstanding. The offering price of $71.36 per share is 4.42 percent below the closing price per share of PayPal’s common stock on February 17, 2023.
PayPal recommends that stockholders do not tender their shares in response to TRC’s offer because the offer is below the current market price of PayPal’s shares and is subject to numerous conditions, including TRC Capital Corporation obtaining financing for the offer. There is no guarantee the conditions of the offer will be satisfied. Stockholders who have already tendered their shares may withdraw them at any time by providing notice in the manner described in the TRC offering documents prior to the expiration of the offer, which is currently scheduled for 12:01 a.m. EDT on March 22, 2023, unless extended.
PayPal Holdings Inc. represents 1.14 billion in outstanding shares, while the company has a total market value of $85.07 billion with the latest information. PYPL stock price has been found in the range of $72.98 to $74.03.
If compared to the average trading volume of 14.70M shares, PYPL reached a trading volume of 12307192 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Here is what top equities market gurus are saying about PayPal Holdings Inc. [PYPL]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for PYPL shares is $100.95 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on PYPL stock is a recommendation set at 2.10. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
Raymond James have made an estimate for PayPal Holdings Inc. shares, keeping their opinion on the stock as Mkt Perform, with their previous recommendation back on February 06, 2023. While these analysts kept the previous recommendation, SMBC Nikko dropped their target price from $95 to $75. The new note on the price target was released on January 18, 2023, representing the official price target for PayPal Holdings Inc. stock. Previously, the target price had yet another drop from $100 to $80, while KeyBanc Capital Markets kept a Sector Weight rating on PYPL stock.
The Average True Range (ATR) for PayPal Holdings Inc. is set at 2.74, with the Price to Sales ratio for PYPL stock in the period of the last 12 months amounting to 3.09. The Price to Book ratio for the last quarter was 4.13, with the Price to Cash per share for the same quarter was set at 9.40. Price to Free Cash Flow for PYPL in the course of the last twelve months was 16.66 with Quick ratio for the last quarter at 1.30.
Trading performance analysis for PYPL stock
PayPal Holdings Inc. [PYPL] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -4.14. With this latest performance, PYPL shares dropped by -7.02% in over the last four-week period, additionally sinking by -21.56% over the last 6 months – not to mention a drop of -26.98% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for PYPL stock in for the last two-week period is set at 38.12, with the RSI for the last a single of trading hit 31.88, and the three-weeks RSI is set at 41.73 for PayPal Holdings Inc. [PYPL]. The present Moving Average for the last 50 days of trading for this stock 76.52, while it was recorded at 74.82 for the last single week of trading, and 82.33 for the last 200 days.
PayPal Holdings Inc. [PYPL]: A deeper dive into fundamental analysis
Operating Margin for any stock indicates how profitable investing would be, and PayPal Holdings Inc. [PYPL] shares currently have an operating margin of +13.24 and a Gross Margin at +47.30. PayPal Holdings Inc.’s Net Margin is presently recorded at +8.94.
Return on Equity for this stock inclined to 11.52, with Return on Assets sitting at 3.13.
PayPal Holdings Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.30 and a Current Ratio set at 1.30.
PayPal Holdings Inc. [PYPL]: An earnings per share (EPS) analysis
The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for PYPL. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for PayPal Holdings Inc. go to 14.81%.
An analysis of insider ownership at PayPal Holdings Inc. [PYPL]
There are presently around $61,329 million, or 76.00% of PYPL stock, in the hands of institutional investors. The top three institutional holders of PYPL stocks are: VANGUARD GROUP INC with ownership of 95,722,682, which is approximately -0.14% of the company’s market cap and around 0.20% of the total institutional ownership; BLACKROCK INC., holding 76,252,332 shares of the stock with an approximate value of $5.61 billion in PYPL stocks shares; and STATE STREET CORP, currently with $3.25 billion in PYPL stock with ownership of nearly -1.051% of the company’s market capitalization.
Positions in PayPal Holdings Inc. stocks held by institutional investors increased at the end of Thursday and at the time of the Thursday reporting period, where 800 institutional holders increased their position in PayPal Holdings Inc. [NASDAQ:PYPL] by around 87,544,777 shares. Additionally, 1,346 investors decreased positions by around 92,768,789 shares, while 188 investors held positions by with 653,522,009 shares. The mentioned changes placed institutional holdings at 833,835,575 shares, according to the latest SEC report filing. PYPL stock had 206 new institutional investments in for a total of 16,021,403 shares, while 292 institutional investors sold positions of 39,278,272 shares during the same period.