PayPal (NASDAQ:PYPL) Stock Price Up 1.6% – Time to Buy?

PayPal Holdings, Inc. (NASDAQ:PYPL)’s stock price was up 1.6% during mid-day trading on Tuesday . The stock traded as high as $46.98 and last traded at $46.13. Approximately 20,879,924 shares changed hands during trading, a decline of 16% from the average daily volume of 24,986,244 shares. The stock had previously closed at $45.42.

Key PayPal News

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: PayPal expanded its PayPal USD (PYUSD) stablecoin to 70 markets, enabling faster settlement (reported 1-minute settlements in some coverage), lower cross-border costs and the ability for users to receive, hold and send PYUSD globally — a concrete product rollout that can drive payment volume and new fees. PAYPAL BRINGS PAYPAL USD TO USERS ACROSS 70 MARKETS
• Neutral Sentiment: Analysts and commentators note PYPL’s low valuation (single-digit P/E) and say the stock could rebound if execution improves; however, consensus is that the next earnings report (early May) will be the key catalyst to confirm any turnaround. Why PayPal’s Rally Faded—And What Could Restart It
• Negative Sentiment: Multiple securities class-action lawsuits have been filed and several law firms are soliciting lead plaintiffs (April 20 deadline), creating potential legal costs and management distraction that could pressure the stock. PayPal Holdings (PYPL) Faces Securities Class Action — Hagens Berman
• Negative Sentiment: Recent quarterly results missed estimates and management issued cautious guidance; the subsequent CEO exit has amplified uncertainty and was cited in coverage about the new lawsuits and market-cap decline. New Lawsuit Hits PayPal After CEO Exit

Analyst Ratings Changes

Several research firms recently weighed in on PYPL. BTIG Research restated a “neutral” rating on shares of PayPal in a research note on Tuesday, February 3rd. Robert W. Baird set a $52.00 target price on PayPal in a report on Wednesday, February 4th. BNP Paribas Exane dropped their price objective on shares of PayPal from $71.00 to $69.00 and set a “neutral” rating on the stock in a research note on Tuesday, December 2nd. UBS Group reissued a “neutral” rating and issued a $44.00 price target on shares of PayPal in a report on Wednesday, February 4th. Finally, President Capital decreased their price objective on shares of PayPal from $91.00 to $80.00 and set a “buy” rating on the stock in a report on Tuesday, November 25th. Eight research analysts have rated the stock with a Buy rating, thirty-one have assigned a Hold rating and six have assigned a Sell rating to the stock. Based on data from MarketBeat, the stock has an average rating of “Hold” and a consensus price target of $59.03.

PayPal Trading Up 1.6%

The business’s 50-day simple moving average is $48.64 and its two-hundred day simple moving average is $59.50. The company has a current ratio of 1.29, a quick ratio of 1.29 and a debt-to-equity ratio of 0.49. The company has a market capitalization of $42.47 billion, a PE ratio of 8.53, a PEG ratio of 1.34 and a beta of 1.43.

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

PayPal Dividend Announcement

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

Insider Activity

In related news, EVP Frank Keller sold 29,581 shares of the company’s stock in a transaction that occurred on Tuesday, March 3rd. The stock was sold at an average price of $46.02, for a total transaction of $1,361,317.62. Following the sale, the executive vice president directly owned 51,567 shares of the company’s stock, valued at approximately $2,373,113.34. This represents a 36.45% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, insider Suzan Kereere sold 13,515 shares of PayPal stock in a transaction dated Tuesday, March 3rd. The shares were sold at an average price of $46.02, for a total transaction of $621,960.30. Following the completion of the transaction, the insider directly owned 30,983 shares of the company’s stock, valued at $1,425,837.66. This trade represents a 30.37% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 87,608 shares of company stock worth $3,831,535. 0.08% of the stock is currently owned by insiders.

Hedge Funds Weigh In On PayPal

Several institutional investors have recently modified their holdings of PYPL. Vanguard Group Inc. grew its position in PayPal by 6.5% in the 4th quarter. Vanguard Group Inc. now owns 90,376,927 shares of the credit services provider’s stock worth $5,276,205,000 after purchasing an additional 5,534,462 shares during the last quarter. Capital Research Global Investors grew its holdings in PayPal by 2.3% in the 3rd quarter. Capital Research Global Investors now owns 27,953,803 shares of the credit services provider’s stock worth $1,874,637,000 after buying an additional 636,441 shares in the last quarter. Norges Bank acquired a new stake in PayPal in the 4th quarter valued at approximately $949,758,000. Invesco Ltd. increased its position in PayPal by 9.7% in the 4th quarter. Invesco Ltd. now owns 12,215,792 shares of the credit services provider’s stock valued at $713,158,000 after acquiring an additional 1,083,843 shares during the period. Finally, Artisan Partners Limited Partnership boosted its position in PayPal by 1.6% during the 2nd quarter. Artisan Partners Limited Partnership now owns 11,992,031 shares of the credit services provider’s stock worth $891,248,000 after acquiring an additional 184,014 shares during the period. Institutional investors own 68.32% of the company’s stock.

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.