PayPal (NASDAQ:PYPL) Stock Price Down 2.6% on Analyst Downgrade

PayPal Holdings, Inc. (NASDAQ:PYPL)’s stock price fell 2.6% during mid-day trading on Wednesday after BNP Paribas Exane lowered their price target on the stock from $71.00 to $69.00. BNP Paribas Exane currently has a neutral rating on the stock. PayPal traded as low as $60.41 and last traded at $61.24. 24,331,510 shares changed hands during trading, an increase of 95% from the average session volume of 12,451,697 shares. The stock had previously closed at $62.90.

Several other brokerages have also recently commented on PYPL. KGI Securities decreased their price objective on shares of PayPal from $85.00 to $80.00 in a research note on Monday, November 10th. The Goldman Sachs Group raised their target price on shares of PayPal from $70.00 to $72.00 and gave the stock a “sell” rating in a report on Wednesday, October 29th. Argus boosted their target price on shares of PayPal from $81.00 to $87.00 and gave the company a “buy” rating in a research report on Wednesday, October 29th. Cowen reaffirmed a “mixed” rating on shares of PayPal in a research report on Wednesday, October 29th. Finally, Truist Financial lifted their price objective on PayPal from $65.00 to $66.00 and gave the company a “sell” rating in a research note on Tuesday, November 4th. Sixteen investment analysts have rated the stock with a Buy rating, eighteen have issued a Hold rating and four have issued a Sell rating to the stock. According to MarketBeat.com, the stock currently has an average rating of “Hold” and an average price target of $82.00.

Insider Activity

In other news, EVP Diego Scotti sold 3,838 shares of the stock in a transaction dated Thursday, October 30th. The shares were sold at an average price of $68.97, for a total transaction of $264,706.86. Following the sale, the executive vice president directly owned 16,989 shares of the company’s stock, valued at $1,171,731.33. This represents a 18.43% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, insider Suzan Kereere sold 12,500 shares of PayPal stock in a transaction dated Monday, November 3rd. The shares were sold at an average price of $68.87, for a total value of $860,875.00. Following the completion of the transaction, the insider owned 30,983 shares of the company’s stock, valued at approximately $2,133,799.21. This represents a 28.75% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 36,156 shares of company stock worth $2,432,524. 0.08% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the company. Hilltop National Bank purchased a new position in shares of PayPal in the second quarter worth about $27,000. MUFG Securities EMEA plc raised its holdings in PayPal by 100.4% in the 2nd quarter. MUFG Securities EMEA plc now owns 385 shares of the credit services provider’s stock valued at $29,000 after acquiring an additional 87,524 shares during the last quarter. Cloud Capital Management LLC purchased a new position in PayPal in the 3rd quarter worth approximately $30,000. Kelleher Financial Advisors acquired a new position in shares of PayPal during the 3rd quarter worth approximately $30,000. Finally, Gordian Capital Singapore Pte Ltd grew its position in shares of PayPal by 41.2% in the first quarter. Gordian Capital Singapore Pte Ltd now owns 473 shares of the credit services provider’s stock valued at $31,000 after purchasing an additional 138 shares in the last quarter. 68.32% of the stock is owned by institutional investors and hedge funds.

PayPal Stock Performance

The stock has a market cap of $57.30 billion, a price-to-earnings ratio of 12.27, a PEG ratio of 0.84 and a beta of 1.43. The company has a debt-to-equity ratio of 0.56, a current ratio of 1.34 and a quick ratio of 1.34. The firm has a fifty day moving average of $66.93 and a 200 day moving average of $69.69.

PayPal (NASDAQ:PYPL) last issued its earnings results on Tuesday, October 28th. The credit services provider reported $1.34 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.20 by $0.14. PayPal had a return on equity of 25.64% and a net margin of 14.96%.The company had revenue of $8.42 billion during the quarter, compared to analysts’ expectations of $8.21 billion. During the same period in the prior year, the business earned $1.20 EPS. The firm’s quarterly revenue was up 7.3% on a year-over-year basis. PayPal has set its Q4 2025 guidance at 1.270-1.310 EPS and its FY 2025 guidance at 5.350-5.390 EPS. As a group, sell-side analysts forecast that PayPal Holdings, Inc. will post 5.03 EPS for the current year.

PayPal Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, December 10th. Stockholders of record on Wednesday, November 19th will be issued a dividend of $0.14 per share. The ex-dividend date is Wednesday, November 19th. This represents a $0.56 dividend on an annualized basis and a dividend yield of 0.9%. PayPal’s dividend payout ratio (DPR) is currently 11.22%.

PayPal Company Profile

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.