PayPal Holdings Inc (NASDAQ:PYPL) CEO Dan Schulman may have given investors reason to be bullish on the company’s stock — at least until the end of 2023.
Schulman plans to step down from his position at the end of the year, but on February 17 he purchased about $2 million worth of PayPal stock. That’s unusual for an outgoing executive, according to analysts at the firm 2iQ.
“Typically, when top-level insiders are set to step down from their positions, they are net sellers of company stock,” the analysts said. “The fact that Mr Schulman is buying company stock suggests that he firmly believes that PayPal is undervalued at present.”
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PayPal also recently earned a pair of high-profile price target upgrades after reporting its fourth quarter results earlier this month.
JP Morgan increased its price target to $103 from $95, and Wells Fargo raised its price target to $97 from $95.
PayPal shares traded 2.5% lower at $73.31 on Friday afternoon.
The company beat 4Q earnings estimates, reporting $1.24 per share versus the consensus expectation of $1.20 per share. It also forecast fiscal 2023 earnings of $4.87, higher than current estimates of $4.75 per share.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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