Ronald Lee Wyden, a Democratic leader and Senator from Oregon, has been on a stock-selling spree lately. As per Capitol Trades, Wyden sold stocks of several American companies in mid-November. These sales included some major technology names, including Coupa Software (NASDAQ:COUP), Block Inc. (NYSE:SQ), Meta Platforms (NASDAQ:META), Apple (NASDAQ:AAPL), FedEx Corp. (NYSE:FDX), and Netflix (NASDAQ:NFLX).
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Remarkably, one of the largest share sales that caught our attention was that of fintech company PayPal Holdings (NASDAQ:PYPL). PayPal runs an online payment platform that acts as a payment processor for online vendors, auction sites, and many other commercial users, for which it charges a fee. Owing to the slump in technology stocks and an overall dull macroeconomic outlook, PYPL stock has lost 64.2% so far this year.
Wyden sold PYPL stock in large chunks ranging from $100,000 to $250,000 (exact amount unknown), making it one of his largest share sales to date. The politician sold the stock on November 11, 2022, and disclosed it in a regulatory filing dated December 12, 2022. Luckily for the politician, the timing of the sale was perfect because the stock fell nearly 19% during this period.
What is the Prediction for PayPal Stock?
Analysts remain split on PayPal’s stock trajectory. On TipRanks, PYPL stock has a Moderate Buy consensus rating based on 21 Buys and eight Hold ratings. The average PayPal Holdings stock prediction of $106.58 implies 52.8% upside potential to current levels.
The Buy Now, Pay Later (BNPL) industry has witnessed lackluster performance recently owing to the persistently high inflation rate. Having said that, going ahead, PayPal will be the prime beneficiary of a revival in the BNPL sector. Moreover, the stock currently trades at a 64.6% discount to its five-year average Price/Sales (P/S) multiple of 3.06x, meaning there is more room for growth in the future.
Ending Thoughts
Senator Wyden has sold a large chunk of PayPal Holdings, but the date of the acquisition of shares is unknown, which means he could have made a huge profit on the sale. Apart from this, he has sold several other tech stocks, which could also mean his outlook for the sector is not bright. Notably, investors can follow Wyden’s and other politicians’ trading activities to make informed investment decisions.
