PayPal (NASDAQ:PYPL) Hits New 1-Year High – Should You Buy?

PayPal Holdings, Inc. (NASDAQ:PYPL) hit a new 52-week high during mid-day trading on Monday . The stock traded as high as $84.19 and last traded at $84.19, with a volume of 120857 shares trading hands. The stock had previously closed at $83.01.

Analyst Ratings Changes

A number of research firms have weighed in on PYPL. Canaccord Genuity Group raised their target price on shares of PayPal from $80.00 to $96.00 and gave the stock a “buy” rating in a research note on Wednesday, October 30th. Phillip Securities reiterated an “accumulate” rating and set a $90.00 price target (up previously from $80.00) on shares of PayPal in a report on Friday, November 1st. Keefe, Bruyette & Woods reissued an “outperform” rating and issued a $78.00 price objective on shares of PayPal in a report on Wednesday, September 18th. Monness Crespi & Hardt lifted their target price on shares of PayPal from $95.00 to $110.00 and gave the stock a “buy” rating in a research note on Monday, October 28th. Finally, Morgan Stanley increased their price target on shares of PayPal from $71.00 to $76.00 and gave the company an “equal weight” rating in a research note on Wednesday, October 30th. Fifteen equities research analysts have rated the stock with a hold rating, nineteen have given a buy rating and one has issued a strong buy rating to the company’s stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $83.45.

PayPal Price Performance

The company’s 50-day simple moving average is $77.67 and its 200-day simple moving average is $68.49. The company has a debt-to-equity ratio of 0.49, a quick ratio of 1.25 and a current ratio of 1.25. The company has a market capitalization of $86.62 billion, a PE ratio of 20.62, a P/E/G ratio of 1.55 and a beta of 1.43.

PayPal (NASDAQ:PYPL) last issued its quarterly earnings results on Tuesday, October 29th. The credit services provider reported $1.20 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.07 by $0.13. PayPal had a return on equity of 23.44% and a net margin of 14.08%. The firm had revenue of $7.85 billion for the quarter, compared to analysts’ expectations of $7.88 billion. During the same quarter in the previous year, the firm posted $0.97 EPS. The firm’s revenue for the quarter was up 6.0% on a year-over-year basis. As a group, sell-side analysts anticipate that PayPal Holdings, Inc. will post 4.56 earnings per share for the current year.

Hedge Funds Weigh In On PayPal

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Bruce G. Allen Investments LLC raised its holdings in PayPal by 7.4% during the third quarter. Bruce G. Allen Investments LLC now owns 1,810 shares of the credit services provider’s stock worth $141,000 after purchasing an additional 124 shares in the last quarter. First United Bank & Trust boosted its stake in shares of PayPal by 6.4% in the third quarter. First United Bank & Trust now owns 2,395 shares of the credit services provider’s stock valued at $187,000 after buying an additional 145 shares in the last quarter. Ritholtz Wealth Management grew its holdings in PayPal by 3.3% during the third quarter. Ritholtz Wealth Management now owns 4,724 shares of the credit services provider’s stock worth $369,000 after acquiring an additional 152 shares during the period. SYSTM Wealth Solutions LLC raised its position in PayPal by 50.6% in the second quarter. SYSTM Wealth Solutions LLC now owns 497 shares of the credit services provider’s stock worth $29,000 after acquiring an additional 167 shares in the last quarter. Finally, First Bank & Trust lifted its holdings in PayPal by 4.4% in the third quarter. First Bank & Trust now owns 4,016 shares of the credit services provider’s stock valued at $313,000 after acquiring an additional 171 shares during the period. 68.32% of the stock is currently owned by hedge funds and other institutional investors.

About PayPal

PayPal Holdings, Inc operates a technology platform that enables digital payments on behalf of merchants and consumers worldwide. It operates a two-sided network at scale that connects merchants and consumers that enables its customers to connect, transact, and send and receive payments through online and in person, as well as transfer and withdraw funds using various funding sources, such as bank accounts, PayPal or Venmo account balance, PayPal and Venmo branded credit products comprising its installment products, credit and debit cards, and cryptocurrencies, as well as other stored value products, including gift cards and eligible rewards.