Hedge Funds Prefer These 5 Stocks Over Square

In this article, we discuss the 5 stocks that hedge funds prefer over Square. If you want to skip our detailed analysis of these stocks, go directly to Hedge Funds Prefer These 10 Stocks Over Square (SQ).

5. PayPal Holdings, Inc. (NASDAQ:PYPL)

Number of Hedge Fund Holders: 143  

PayPal Holdings, Inc. (NASDAQ:PYPL) is ranked fifth on our list of 10 stocks that hedge funds prefer over Square, Inc. (NYSE:SQ). The company markets digital payments solutions and is headquartered in California. 

On September 9, investment advisory DA Davidson maintained a Buy rating on PayPal Holdings, Inc. (NASDAQ:PYPL) stock with a price target of $325, noting that consolidation in the payments sector was expected to continue in the coming months. 

At the end of the second quarter of 2021, 143 hedge funds in the database of Insider Monkey held stakes worth $16.3 billion in PayPal Holdings, Inc. (NASDAQ:PYPL), the same as in the preceding quarter worth $14.7 billion.

In its Q4 2020 investor letter, Polen Capital Management, an asset management firm, highlighted a few stocks and PayPal Holdings, Inc. (NASDAQ:PYPL) was one of them. Here is what the fund said:

“For the full year 2020, one of the top performers was PayPal, which we purchased in 2019, the company continues to take market share in digital payments and has seen an acceleration in user adoption and engagement, especially within their “silver tech” or older user demographic. We expect many more years of ongoing double-digit growth from their various business segments and new initiatives.”