Why RGA Sold PayPal Holdings Despite Positive Fundamentals

RGA Investment Advisors sold PayPal Holdings Inc due to a personal account hack despite two-factor authentication enabled. The company's fundamentals look good, but the incident has made the investment advisors wary. PayPal's one-month return was -7.47% and its shares lost 0.29% over the last 52 weeks. The stock closed at $69.38 per share with a market capitalization of $66.141 billion.

In recent weeks, PayPal Holdings Inc. (NASDAQ:PYPL) has faced scrutiny from investors following a security breach that led to the sale of its shares by RGA Investment Advisors. Despite the company's robust fundamentals, the incident has cast a shadow over the investment advisor's confidence in the stock.

On July 2, 2025, PayPal's shares closed at $69.38 per share, representing a 0.29% decline over the last 52 weeks. Over the past month, the stock experienced a 7.47% drop, raising concerns among investors. The security breach, which involved a personal account hack despite two-factor authentication, has made RGA Investment Advisors wary of the stock's safety [3].

PayPal's fundamentals remain strong. The company operates a technology platform that enables digital payments worldwide, connecting merchants and consumers through various funding sources. Despite the security concerns, analysts have maintained a generally positive outlook on the stock. Morgan Stanley, for instance, reaffirmed a "positive" rating on PayPal, while Robert W. Baird lifted its price target from $78.00 to $79.00, giving the company an "outperform" rating [2].

However, the recent security incident has led to a cautious approach from some investors. The incident underscores the importance of robust security measures in the digital payments industry. PayPal has not released specific details about the breach, but the incident highlights the need for continuous vigilance and improvement in cybersecurity protocols.

Investors should closely monitor PayPal's response to the security breach and any updates on the incident. The company's ability to reassure investors and demonstrate a commitment to enhancing security measures will be crucial in rebuilding confidence in the stock.

References:
[1] https://www.aol.com/on-cybercriminals-hack-banks-15-million-dollars.html
[2] https://www.marketbeat.com/instant-alerts/filing-resona-asset-management-co-ltd-increases-stock-position-in-paypal-holdings-inc-nasdaqpypl-2025-08-13/
[3] https://www.marketbeat.com/instant-alerts/filing-brandywine-global-investment-management-llc-grows-stock-holdings-in-paypal-holdings-inc-nasdaqpypl-2025-08-15/