Enrique Lores, a director at
PayPal Holdings (PYPL), recently added 2,770 shares. The buy increased his stake by over 325 percent, and came to a purchase price of just under $500,000.
This buy comes after another director bought 1,547 shares back in late November, paying nearly $289,000 to do so. And a third director picked up 9,780 shares for just under $2 million at the start of November. Insiders have otherwise been sellers over the past three years.
Overall, company insiders own just over 0.1 percent of shares.
The digital payment platform is down over the past year by nearly 15 percent, following a steep decline in shares in recent weeks. That’s as the company has been growing in the low-double-digit range, and with hitting a 20 percent profit margin.
Action to take: Shares have gone from over 63 times forward earnings to 34 times in the past year. As a dominator in the online payments space, the company will likely recover and move higher in time, and insider buying here may be a sign that the worst of the selloff is over.
Shares look attractive here, although they don’t yet pay a dividend.
Investors may want to bet on a rebound with a call option trade. The March $210 calls, last going for about $9.40, could deliver high-double to low-triple-digit gains in the weeks ahead on a strong rebound in shares.
Disclosure: The author of this article has a position in the company mentioned here, and may further trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.
