PayPal Stock Down 8.35% Yesterday Following Repeated Share Offloads by Company Execs
Mar 11, 2020 at 6:25 am UTC by Tolu Ajiboye · 3 min read
PayPal lost over 8% of its stock price yesterday as it feels the brunt of the biting coronavirus epidemic. The company’s execs have also been dumping shares.
Just like many other companies, PayPal Holdings Inc (NASDAQ: PYPL) is not having a field day at all. The company’s stock is reacting quite unfavorably to the coronavirus epidemic burning large holes through the stock market. Currently, PayPal (PYPL) stock isn’t exactly doing great, causing the company and investors to be a little worried. While this worry is understandable, it will take a lot of effort for PayPal stock to survive the current market situation.
PayPal Stock Fell Yesterday
Yesterday PayPal stock fell 8.35% and closed at $101.63. The company is not exactly crumbling but is a hard hit. At the moment, PYPL is trading up 2% at $106.33. While this is some improvement, it’s not enough to correct the loss the company has incurred so far.
PayPal stock’s short to long term figures have not exactly been encouraging as well. For example, in the last 5 days, the company has shed 5.5% of its weight. Over the last month, it has lost almost 13% with a 4.11% loss in 2020.
At the end of last month, PayPal stock fell 1.16% on a revenue warning for the quarter. The company said that it would not be able to keep up with the previous guidance for the first quarter, lowering the figure.
PayPal Execs Are Dumping PYPL Stock
For unknown reasons, PayPal management is selling off shares in the company. Earlier this month, company CFO John Rainey dumped 87,925 shares. At the time, the average price was $107.48, putting the transaction at about $9.5 million. Rainey however still has 107,845 shares left.
Chief Risk Officer Aaron Karczmer dumped 51,590 shares on March 3, just a day after Rainey’s offload. Karczmer’s dump hovered between $110.96 and $114.50, totaling $5.8 million. Karczmer still has over 33,000 shares.
Another exec, Louise Pentland, sold the most at 92,700 shares. Pentland received $10 million and still has 52,907 shares. The sale price was between $107.19 and $108.71.
In total, the execs made $25.3 million from selling 232,315 shares. At a time like this, sales from top management might make investors and traders a bit more wary about their own positions in the company. PayPal stock might take a further beating.
Elon Musk Echoes Peter Thiel
During the Satellite 2020 conference held in Washington, D.C., Tesla Inc (NASDAQ: TSLA) CEO Elon Musk revealed that he doesn’t think a college education is important. Musk, who is also a PayPal co-founder said this in response to a question from an audience member. According to a recent tweet from a CNBC reporter, Musk said:
“Colleges are basically for fun and to prove you can do your chores, but they’re not for learning.”
The Tesla CEO believes that College is for “seeing whether somebody can work hard at something”, adding that “ you don’t need college to learn stuff.”
Peter Thiel sort of supports a similar lifestyle with his Thiel Fellowship. Since 2011, Thiel has been offering people who are not older than 22, an opportunity to drop out of school with a two-year grant worth $100,000.
Interestingly, several PayPal and Tesla vacancies still require a bachelor’s, an equivalent, or even a master’s degree.
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge.
When he's not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.
Ex-CFTC chief’s Digital Dollar Initiative adds 22 new advisors and will release a white paper in the next two months. The Digital Dollar is serious as never, as ex-CFTC, FED, Treasury board directors join the venture.