Paypal (PYPL) Downgraded to Hold at Zacks Investment Research

Zacks Investment Research cut shares of Paypal (NASDAQ:PYPL) from a buy rating to a hold rating in a report issued on Tuesday morning.

According to Zacks, “PayPal continues to witness expanding customer base with the help of its robust Venmo, Choice and One Touch. Also, the company’s tie-up with MasterCard is aiding the adoption rate of Venmo. Further, the company’s ongoing partnership with ShinhanCard remains positive for its presence in South Korea. Also, its extended partnership with Google and eBay will continue to strengthen its customer base further. This will keep adding strength to PayPal’s total payments volume. We believe an expanding product & services portfolio and global presence will continue to benefit the company’s market share. Notably, shares of PayPal have outperformed the industry it belongs to over a year. However, continuous exposure to foreign exchange and interest rate risks are major concerns. Also, intensifying competition from major players in the finance and payment industry poses a risk to the company’s market position.”

Several other analysts have also recently commented on PYPL. Raymond James upgraded Paypal from a market perform rating to an outperform rating and set a $108.00 target price on the stock in a research report on Friday, September 14th. Wells Fargo & Co raised their target price on Paypal from $95.00 to $101.00 and gave the company an outperform rating in a research report on Thursday, July 26th. Bank of America raised their target price on Paypal from $98.00 to $102.00 and gave the company a buy rating in a research report on Tuesday, September 11th. Berenberg Bank assumed coverage on Paypal in a research report on Thursday, August 30th. They issued a buy rating and a $104.00 target price on the stock. Finally, Atlantic Securities upgraded Paypal from a neutral rating to an overweight rating and set a $43.00 target price on the stock in a research report on Thursday, June 21st. One equities research analyst has rated the stock with a sell rating, seven have given a hold rating and thirty-three have assigned a buy rating to the company’s stock. The stock currently has a consensus rating of Buy and an average target price of $91.89.

Shares of Paypal stock opened at $79.03 on Tuesday. The company has a market cap of $103.97 billion, a PE ratio of 56.86, a P/E/G ratio of 2.86 and a beta of 1.31. Paypal has a twelve month low of $66.16 and a twelve month high of $93.70.

Paypal (NASDAQ:PYPL) last announced its quarterly earnings results on Wednesday, July 25th. The credit services provider reported $0.58 earnings per share for the quarter, topping analysts’ consensus estimates of $0.41 by $0.17. The business had revenue of $3.86 billion for the quarter, compared to analysts’ expectations of $3.81 billion. Paypal had a return on equity of 12.91% and a net margin of 14.02%. The business’s quarterly revenue was up 23.0% on a year-over-year basis. During the same period in the prior year, the firm earned $0.46 EPS. Research analysts predict that Paypal will post 1.73 earnings per share for the current fiscal year.

In other news, EVP Aaron Karczmer sold 10,330 shares of the firm’s stock in a transaction on Friday, July 27th. The stock was sold at an average price of $88.22, for a total transaction of $911,312.60. Following the completion of the sale, the executive vice president now directly owns 12,174 shares of the company’s stock, valued at approximately $1,073,990.28. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, insider Daniel H. Schulman sold 26,000 shares of the firm’s stock in a transaction on Thursday, September 27th. The stock was sold at an average price of $89.57, for a total value of $2,328,820.00. Following the sale, the insider now directly owns 331,506 shares of the company’s stock, valued at $29,692,992.42. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 149,732 shares of company stock valued at $13,204,157. 0.20% of the stock is currently owned by corporate insiders.

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Webster Bank N. A. boosted its stake in shares of Paypal by 432.4% during the 3rd quarter. Webster Bank N. A. now owns 22,304 shares of the credit services provider’s stock worth $1,959,000 after acquiring an additional 18,115 shares in the last quarter. Douglass Winthrop Advisors LLC boosted its position in shares of Paypal by 7.0% in the third quarter. Douglass Winthrop Advisors LLC now owns 340,647 shares of the credit services provider’s stock worth $29,922,000 after buying an additional 22,419 shares during the period. Pittenger & Anderson Inc. boosted its position in shares of Paypal by 1.4% in the third quarter. Pittenger & Anderson Inc. now owns 92,340 shares of the credit services provider’s stock worth $8,111,000 after buying an additional 1,290 shares during the period. Grassi Investment Management boosted its position in shares of Paypal by 12.6% in the third quarter. Grassi Investment Management now owns 38,925 shares of the credit services provider’s stock worth $3,419,000 after buying an additional 4,357 shares during the period. Finally, Gradient Investments LLC boosted its position in shares of Paypal by 27.5% in the third quarter. Gradient Investments LLC now owns 14,447 shares of the credit services provider’s stock worth $1,269,000 after buying an additional 3,112 shares during the period. 79.59% of the stock is owned by institutional investors and hedge funds.

About Paypal

PayPal Holdings, Inc operates as a technology platform company that enables digital and mobile payments on behalf of consumers and merchants worldwide. Its payment solutions include PayPal, PayPal Credit, Braintree, Venmo, Xoom, and Paydiant products. The company's platform allows consumers to shop by sending payments, withdraw funds to their bank accounts, and hold balances in their PayPal accounts in various currencies.

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