Daniel Schulman, President and CEO at PayPal Holdings (PYPL), recently bought 26,065 shares. The buy increased his holdings by 7 percent, and came to a total cost of $1.99 million.
This marks the first insider buy since last May, when the company’s Chief Product Officer bought 7,370 shares, at a cost of $597,000. There have been three small sales since. Going back further, insider buying and selling has been more mixed, even when shares traded far higher than today.
Overall, company insiders own 0.2 percent of shares.
The payment processing company is down about 25 percent over the past year, as tech names have been hit harder than the overall market. However, shares now trade at about 15 times forward earnings, and PayPal managed to grow its earnings 15 percent last year in a slowing economy.
Action to take: As an industry leader in the payments space, PayPal can likely continue to grow its earnings and revenues. Shares are attractive to accumulate at current prices or lower. At the moment, the company does not pay a dividend.
For traders, shares have been somewhat rangebound over the past few months, and are now near the lower end of their range. The July $85 calls, last going for about $4.70, offer mid-double-digit returns in the months ahead from a bounce off the recent lows.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.