Daniel Schulman Is The President of PayPal Holdings, Inc. (NASDAQ:PYPL) And They Just Picked Up 4.2% More Shares

Those following along with PayPal Holdings, Inc. (NASDAQ:PYPL) will no doubt be intrigued by the recent purchase of shares by Daniel Schulman, President of the company, who spent a stonking US$996k on stock at an average price of US$125. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 4.2%.

See our latest analysis for PayPal Holdings

The Last 12 Months Of Insider Transactions At PayPal Holdings

In the last twelve months, the biggest single purchase by an insider was when Independent Chairman of the Board John Donahoe bought US$2.0m worth of shares at a price of US$204 per share. That means that an insider was happy to buy shares at above the current price of US$121. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

In the last twelve months insiders purchased 22.09k shares for US$3.8m. On the other hand they divested 5.29k shares, for US$1.6m. Overall, PayPal Holdings insiders were net buyers during the last year. The average buy price was around US$171. This is nice to see since it implies that insiders might see value around current prices. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

PayPal Holdings is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Does PayPal Holdings Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. PayPal Holdings insiders own 0.08% of the company, currently worth about US$108m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About PayPal Holdings Insiders?

The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about PayPal Holdings. Looks promising! While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Case in point: We've spotted 1 warning sign for PayPal Holdings you should be aware of.

Of course PayPal Holdings may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.