Paypal Holdings Inc (NASDAQ:PYPL) announced today that it received notice of an unsolicited “mini-tender” offer by TRC Capital Corporation (TRC) to purchase up to 3 million shares of PayPal’s common stock at a price of $32.80 per share in cash. The offering price is 4.6 percent below the closing price per share of PayPal’s common stock on September 9, 2015, the last trading day before the offer was commenced. The offer is for approximately 0.25 percent of the outstanding shares of PayPal’s common stock.
PayPal does not endorse TRC Capital’s unsolicited mini-tender offer and recommends that shareholders do not tender their shares. PayPal is not associated with TRC Capital, its mini-tender offer or the mini-tender offer documentation.
Mini-tender offers are not subject to many of the investor protections afforded to larger tender offers, including the filing of disclosure and other tender offer documents with the Securities and Exchange Commission (SEC) and other procedures mandated by U.S. securities laws.
The SEC has cautioned investors that some bidders making mini-tender offers at below-market prices are, “hoping that they will catch investors off guard if the investors do not compare the offer price to the current market price.” The SEC’s guidance to investors on mini-tender offers is available at http://www.sec.gov/investor/pubs/minitend.htm. TRC Capital has made many similar unsolicited mini-tender offers for shares of other public companies.
Shareholders should obtain current market quotations for their shares, consult with their broker or financial advisor, and exercise caution with respect to TRC Capital’s mini-tender offer. PayPal recommends that shareholders who have not responded to TRC Capital’s offer take no action. Shareholders who have already tendered their shares may withdraw them at any time prior to 12:01 a.m., New York City time, on October 9, 2015, in accordance with TRC’s offering documents. (Original Source)
Shares of Paypal Holdings closed today at $33.91, down $0.25 or -0.73%. PYPL has a 1-year high of $42.55 and a 1-year low of $30. The stock’s 50-day moving average is $35.42 and its 200-day moving average is $36.21.
On the ratings front, Paypal has been the subject of a number of recent research reports. In a report released today, Piper Jaffray analyst Gene Munster maintained a Sell rating on PYPL, with a price target of $30, which implies a downside of 11.5% from current levels. Separately, on September 21, Stifel Nicolaus’ Scott Devitt upgraded the stock to Buy and has a price target of $40.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Gene Munster and Scott Devitt have a total average return of 21.0% and 16.5% respectively. Munster has a success rate of 61.0% and is ranked #6 out of 3766 analysts, while Devitt has a success rate of 60.9% and is ranked #108.
The street is mostly Bullish on PYPL stock. Out of 28 analysts who cover the stock, 19 suggest a Buy rating , 6 suggest a Hold and 3 recommend to Sell the stock. The 12-month average price target assigned to the stock is $41.34, which implies an upside of 21.9% from current levels.
PayPal Holdings Inc is atechnology platform company that enables digital and mobile payments on behalf of consumers and merchants. The Company’s payments platform includes PayPal, PayPal Credit, Venmo and Braintree products.