Shares of PayPal Holdings, Inc. (NASDAQ:PYPL – Get Free Report) were down 1.2% during mid-day trading on Thursday . The company traded as low as $56.66 and last traded at $57.65. Approximately 11,674,640 shares changed hands during trading, a decline of 41% from the average session volume of 19,626,641 shares. The stock had previously closed at $58.35.
More PayPal News
Here are the key news stories impacting PayPal this week:
- Positive Sentiment: PayPal reported second-quarter revenue of $8.68 billion and adjusted EPS of $1.38, exceeding estimates of $8.47 billion and $1.28, respectively. Management also raised full-year profit guidance, citing improving branded checkout performance, Venmo growth and cost savings. PayPal’s Q2 Earnings Call Focuses on Checkout Stability
- Positive Sentiment: Several analysts raised their PayPal price targets following the earnings beat. Keefe, Bruyette & Woods upgraded its target to $70 and assigned an outperform rating, while JPMorgan, Citi, Mizuho and TD Cowen also increased targets, reflecting greater confidence in the turnaround. Analysts Boost PayPal Forecasts
- Neutral Sentiment: Takeover speculation remains part of the valuation debate. Stripe and Advent International reportedly offered $60.50 per share, but PayPal’s board viewed the bid as too low. Chief Executive Alex Chriss indicated openness to deals while maintaining a standalone turnaround strategy, leaving investors to balance potential deal upside against execution risk. PayPal CEO Signals Deal Openness
- Negative Sentiment: Goldman Sachs remains notably bearish, warning that stronger results have not resolved PayPal’s core strategic challenges. Analysts continue to question whether branded checkout can regain sustained momentum and whether management can execute its transformation while protecting profitability. Wall Street Splits on PayPal
- Negative Sentiment: A comparison with Visa’s latest performance underscores investor concerns: Visa surpassed $4 trillion in quarterly payments volume, while PayPal is still working to stabilize branded checkout. The contrast reinforces fears that payment-industry growth and pricing power may be concentrating more strongly with larger networks. Visa vs PayPal: The Post Earnings Winner
Wall Street Analysts Forecast Growth
A number of analysts have recently weighed in on the company. Needham & Company LLC reissued a “hold” rating on shares of PayPal in a research report on Tuesday, May 5th. Citigroup upped their target price on PayPal from $48.00 to $61.00 and gave the company a “neutral” rating in a research report on Wednesday. JPMorgan Chase & Co. increased their price target on PayPal from $46.00 to $65.00 and gave the company a “neutral” rating in a research note on Wednesday. Wells Fargo & Company raised their price target on PayPal from $48.00 to $56.00 and gave the stock an “equal weight” rating in a report on Wednesday. Finally, Telsey Advisory Group lowered PayPal to a “market perform” rating in a research note on Friday, July 24th. Nine investment analysts have rated the stock with a Buy rating, thirty-four have issued a Hold rating and four have given a Sell rating to the company. According to data from MarketBeat.com, PayPal presently has a consensus rating of “Hold” and a consensus price target of $55.50.
PayPal Price Performance
The company has a quick ratio of 1.26, a current ratio of 1.29 and a debt-to-equity ratio of 0.55. The stock’s 50 day moving average price is $46.50 and its two-hundred day moving average price is $47.02. The stock has a market cap of $50.85 billion, a price-to-earnings ratio of 10.90, a price-to-earnings-growth ratio of 1.46 and a beta of 1.33.
PayPal (NASDAQ:PYPL – Get Free Report) last posted its earnings results on Tuesday, July 28th. The credit services provider reported $1.38 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.28 by $0.10. The company had revenue of $8.68 billion during the quarter, compared to the consensus estimate of $8.47 billion. PayPal had a net margin of 14.36% and a return on equity of 24.39%. The firm’s quarterly revenue was up 4.8% on a year-over-year basis. During the same period in the previous year, the firm posted $1.40 earnings per share. Equities research analysts forecast that PayPal Holdings, Inc. will post 5.31 EPS for the current fiscal year.
PayPal Dividend Announcement
The business also recently announced a quarterly dividend, which will be paid on Friday, September 25th. Investors of record on Friday, September 4th will be issued a dividend of $0.14 per share. This represents a $0.56 annualized dividend and a yield of 1.0%. The ex-dividend date of this dividend is Friday, September 4th. PayPal’s dividend payout ratio (DPR) is 10.51%.
Insider Activity at PayPal
In other news, insider Frank Keller sold 4,612 shares of the firm’s stock in a transaction that occurred on Wednesday, June 3rd. The shares were sold at an average price of $42.54, for a total transaction of $196,194.48. Following the sale, the insider owned 41,567 shares of the company’s stock, valued at $1,768,260.18. This trade represents a 9.99% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Suzan Kereere sold 3,379 shares of PayPal stock in a transaction that occurred on Wednesday, June 3rd. The shares were sold at an average price of $42.79, for a total transaction of $144,587.41. Following the transaction, the insider directly owned 30,983 shares of the company’s stock, valued at approximately $1,325,762.57. This trade represents a 9.83% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 8,543 shares of company stock valued at $364,325. 0.63% of the stock is owned by company insiders.
Institutional Trading of PayPal
A number of hedge funds have recently added to or reduced their stakes in PYPL. Brighton Jones LLC raised its holdings in PayPal by 15.2% in the 4th quarter. Brighton Jones LLC now owns 6,989 shares of the credit services provider’s stock worth $596,000 after purchasing an additional 924 shares during the period. Revolve Wealth Partners LLC purchased a new position in shares of PayPal during the 4th quarter valued at approximately $248,000. Sivia Capital Partners LLC lifted its position in shares of PayPal by 41.5% during the 2nd quarter. Sivia Capital Partners LLC now owns 4,470 shares of the credit services provider’s stock valued at $332,000 after buying an additional 1,310 shares in the last quarter. United Bank grew its stake in PayPal by 40.1% in the 2nd quarter. United Bank now owns 17,388 shares of the credit services provider’s stock valued at $1,292,000 after acquiring an additional 4,974 shares during the period. Finally, Federated Hermes Inc. grew its stake in PayPal by 17.9% in the 2nd quarter. Federated Hermes Inc. now owns 18,909 shares of the credit services provider’s stock valued at $1,405,000 after acquiring an additional 2,865 shares during the period. 68.32% of the stock is owned by hedge funds and other institutional investors.
About PayPal
PayPal Holdings, Inc operates a global digital payments platform that enables consumers and merchants to send and receive payments online, on mobile devices and at the point of sale. The company provides a broad set of payment solutions, including a digital wallet, merchant payment processing, checkout services, invoicing and fraud-management tools. PayPal’s platform is designed to support e-commerce, in-person retail and person-to-person transfers, targeting both individual consumers and businesses of varying sizes.
Key products and services in PayPal’s portfolio include the PayPal wallet and checkout ecosystem, the Venmo peer-to-peer mobile app, Braintree’s developer-focused payment gateway, Xoom for international money transfers, and PayPal Credit and buy-now-pay-later options.
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