PayPal (NASDAQ:PYPL) Stock Price Up 1.5% – Time to Buy?

PayPal Holdings, Inc. (NASDAQ:PYPL) was up 1.5% on Friday . The company traded as high as $46.42 and last traded at $46.21. Approximately 23,562,207 shares changed hands during mid-day trading, a decline of 14% from the average daily volume of 27,532,992 shares. The stock had previously closed at $45.53.

PayPal News Summary

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: Takeover chatter: reports that Stripe has explored buying all or parts of PayPal rekindled M&A speculation and sparked a trading surge as investors price potential strategic value or a takeover premium. Read More.
• Positive Sentiment: Product/crypto expansion: PayPal, MoonPay and M0 announced PYUSDx, a platform to let developers issue PYUSD‑backed stablecoins — a potential growth and ecosystem play that could boost payments volume and crypto revenue opportunities. Read More.
• Neutral Sentiment: Conflicting deal signals: subsequent reporting and company commentary have cast doubt on active sale talks — some outlets say PayPal isn’t in talks, which tempers the M&A upside and increases volatility as investors re‑price expectations. Read More.
• Negative Sentiment: Wave of class‑action notices: multiple law firms have filed or issued reminders about securities fraud class actions tied to FY25 results and guidance (lead‑plaintiff deadlines in April), increasing legal overhang and potential future costs/distraction. Read More.
• Negative Sentiment: Analyst and fundamental pressure: sell‑side skepticism and critical research highlight weak Braintree economics, rising credit losses, slowing TPV and lower FY26 guidance — factors that undercut re‑rating prospects. Read More.
• Negative Sentiment: Value‑trap concerns: bearish commentaries argue recent EPS gains were buyback‑driven, with weak organic growth and risky balance‑sheet trends — a narrative that can keep multiples depressed absent clear execution. Read More.
• Negative Sentiment: Market mechanics and positioning: elevated short interest and volatility (including an LULD halt on takeover rumors) amplify downside risk if positive deal news fades or legal/earnings concerns persist. Read More.

Wall Street Analyst Weigh In

A number of research analysts recently commented on PYPL shares. Argus lowered their price target on PayPal from $87.00 to $65.00 and set a “buy” rating on the stock in a report on Friday, February 6th. Rothschild & Co Redburn lowered their target price on shares of PayPal from $50.00 to $32.00 and set a “sell” rating on the stock in a report on Wednesday, February 11th. Canaccord Genuity Group reaffirmed a “hold” rating and set a $42.00 target price (down from $100.00) on shares of PayPal in a research note on Wednesday, February 4th. Stephens decreased their price target on shares of PayPal from $65.00 to $45.00 and set an “equal weight” rating on the stock in a research note on Wednesday, February 4th. Finally, William Blair reissued a “market perform” rating on shares of PayPal in a report on Tuesday, February 3rd. Nine investment analysts have rated the stock with a Buy rating, thirty have given a Hold rating and six have issued a Sell rating to the stock. According to data from MarketBeat.com, PayPal has an average rating of “Hold” and a consensus price target of $61.03.

PayPal Trading Up 1.5%

The stock’s fifty day moving average is $51.85 and its 200 day moving average is $61.57. The company has a debt-to-equity ratio of 0.49, a quick ratio of 1.29 and a current ratio of 1.29. The stock has a market cap of $42.54 billion, a P/E ratio of 8.54, a P/E/G ratio of 1.24 and a beta of 1.43.

PayPal (NASDAQ:PYPL) last posted its quarterly earnings data on Tuesday, February 3rd. The credit services provider reported $1.23 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.29 by ($0.06). The company had revenue of $8.68 billion during the quarter, compared to the consensus estimate of $8.82 billion. PayPal had a net margin of 15.77% and a return on equity of 25.42%. PayPal’s revenue for the quarter was up 4.0% on a year-over-year basis. During the same period in the previous year, the business earned $1.19 earnings per share. As a group, equities research analysts predict that PayPal Holdings, Inc. will post 5.03 earnings per share for the current fiscal year.

PayPal Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Wednesday, March 25th. Stockholders of record on Wednesday, March 4th will be issued a $0.14 dividend. This represents a $0.56 annualized dividend and a dividend yield of 1.2%. The ex-dividend date is Wednesday, March 4th. PayPal’s dividend payout ratio (DPR) is 10.35%.

Insider Buying and Selling

In other news, EVP Frank Keller sold 3,478 shares of the stock in a transaction that occurred on Friday, February 6th. The stock was sold at an average price of $40.20, for a total value of $139,815.60. Following the sale, the executive vice president directly owned 51,567 shares in the company, valued at approximately $2,072,993.40. This represents a 6.32% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, insider Suzan Kereere sold 37,613 shares of the company’s stock in a transaction on Wednesday, February 18th. The shares were sold at an average price of $41.49, for a total value of $1,560,563.37. Following the completion of the transaction, the insider directly owned 30,983 shares in the company, valued at $1,285,484.67. This trade represents a 54.83% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 42,304 shares of company stock valued at $1,749,493. Company insiders own 0.08% of the company’s stock.

Institutional Investors Weigh In On PayPal

Large investors have recently added to or reduced their stakes in the stock. Strategic Investment Solutions Inc. IL increased its position in shares of PayPal by 320.0% during the fourth quarter. Strategic Investment Solutions Inc. IL now owns 1,575 shares of the credit services provider’s stock worth $92,000 after acquiring an additional 1,200 shares during the period. Alpine Global Management LLC bought a new stake in PayPal during the 4th quarter valued at $209,000. Anchor Investment Management LLC lifted its holdings in shares of PayPal by 4.1% in the 4th quarter. Anchor Investment Management LLC now owns 37,469 shares of the credit services provider’s stock worth $2,187,000 after buying an additional 1,487 shares during the period. MidFirst Bank bought a new position in shares of PayPal during the 4th quarter worth $1,603,000. Finally, SG Trading Solutions LLC bought a new stake in shares of PayPal in the fourth quarter valued at about $261,000. 68.32% of the stock is owned by hedge funds and other institutional investors.

PayPal Company Profile

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.