PayPal (NASDAQ:PYPL) Trading 1.4% Higher – Still a Buy?

PayPal Holdings, Inc. (NASDAQ:PYPL)’s stock price shot up 1.4% on Wednesday . The stock traded as high as $45.96 and last traded at $44.85. 14,852,991 shares traded hands during trading, a decline of 40% from the average session volume of 24,729,199 shares. The stock had previously closed at $44.21.

Key Stories Impacting PayPal

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: PayPal launched PayPal USD across 70 markets — expands its stablecoin/crypto rails and cross‑border settlement options, a potential new revenue/engagement driver. PayPal Holdings (PYPL) Announces the Launch of PayPal USD Across 70 Markets
• Positive Sentiment: Venmo goes global — PayPal said Venmo will be available in 90 countries via PayPal integration, broadening user access and international payment volume potential. PayPal takes Venmo global
• Positive Sentiment: Alyssa Henry (ex‑Square/Square’s Square business) joins PayPal’s board — adds payments product and merchant experience expertise; a governance/strategic positive amid leadership shakeups. Alyssa Henry to Join PayPal’s Board of Directors; Gail J. McGovern to Retire from Board
• Neutral Sentiment: New leveraged ETF exposure — Direxion launched a 2x daily ETF for PYPL, which can amplify flows and intraday volatility but doesn’t change fundamentals. Single Stocks Are Driving the Tape – Direxion Launches Four 2X Bull ETFs
• Neutral Sentiment: Market/valuation takes — several pieces urge reassessment of PayPal after the recent share price slide; signals investor debate over whether current levels reflect a buying opportunity or structural slowdown. Is It Time To Reassess PayPal (PYPL) After Its Recent Share Price Slide?
• Negative Sentiment: Widespread securities‑class actions and lead‑plaintiff solicitations — multiple law firms are filing/alerting investors after a surprise CEO ouster and withdrawal of long‑term targets; this legal overhang has been cited in the recent market cap decline and raises potential litigation costs and management distraction. PYPL ALERT: Hagens Berman Alerts PayPal (PYPL) Investors to Securities Class Action Following CEO Ouster and $10B Market Cap Wipeout
• Negative Sentiment: Executive personal‑liability claims — Levi & Korsinsky warns of Section 20(a) claims naming the CEO and CFO, amplifying downside legal risk and potential individual recoveries. LEVI & KORSINSKY, LLP: PYPL CEO AND CFO FACE PERSONAL LIABILITY IN SECURITIES ACTION
• Negative Sentiment: Bearish analyst/commentary — coverage such as “Don’t Buy PayPal Until These 3 Things Happen” highlights structural concerns (competition, growth execution) that could keep sentiment weak until clearer evidence of durable revenue/GMV recovery. Don’t Buy PayPal’s Stock Until These 3 Things Happen

Analysts Set New Price Targets

PYPL has been the topic of several research reports. William Blair reiterated a “market perform” rating on shares of PayPal in a research report on Tuesday, February 3rd. Zacks Research lowered PayPal from a “hold” rating to a “strong sell” rating in a research note on Wednesday, February 11th. President Capital lowered their target price on PayPal from $91.00 to $80.00 and set a “buy” rating on the stock in a report on Tuesday, November 25th. Raymond James Financial reissued a “market perform” rating on shares of PayPal in a research report on Monday, February 23rd. Finally, Royal Bank Of Canada cut their price target on PayPal from $91.00 to $59.00 and set an “outperform” rating for the company in a report on Wednesday, February 4th. Eight investment analysts have rated the stock with a Buy rating, thirty-one have given a Hold rating and six have given a Sell rating to the stock. According to data from MarketBeat.com, PayPal currently has an average rating of “Hold” and a consensus target price of $59.03.

PayPal Stock Performance

The stock’s 50-day moving average is $47.05 and its 200-day moving average is $58.47. The stock has a market cap of $41.29 billion, a price-to-earnings ratio of 8.29, a price-to-earnings-growth ratio of 1.36 and a beta of 1.43. The company has a debt-to-equity ratio of 0.49, a current ratio of 1.29 and a quick ratio of 1.29.

PayPal (NASDAQ:PYPL) last issued its quarterly earnings results on Tuesday, February 3rd. The credit services provider reported $1.23 earnings per share for the quarter, missing the consensus estimate 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 analyst estimates of $8.82 billion. During the same quarter last year, the firm posted $1.19 earnings per share. The company’s revenue was up 4.0% on a year-over-year basis. Analysts anticipate that PayPal Holdings, Inc. will post 5.03 EPS for the current fiscal year.

PayPal Dividend Announcement

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

Insiders Place Their Bets

In other PayPal news, CAO Chris Natali sold 2,208 shares of the firm’s stock in a transaction dated Tuesday, March 3rd. The stock was sold at an average price of $44.73, for a total value of $98,763.84. Following the sale, the chief accounting officer directly owned 1,140 shares of the company’s stock, valued at approximately $50,992.20. This trade represents a 65.95% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, 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 value of $621,960.30. Following the completion of the sale, the insider owned 30,983 shares of the company’s stock, valued at $1,425,837.66. This trade represents a 30.37% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 87,608 shares of company stock valued at $3,831,535. Insiders own 0.08% of the company’s stock.

Hedge Funds Weigh In On PayPal

Large investors have recently bought and sold shares of the stock. National Pension Service lifted its position in PayPal by 1.8% during the third quarter. National Pension Service now owns 2,855,897 shares of the credit services provider’s stock valued at $191,516,000 after buying an additional 51,268 shares in the last quarter. Merit Financial Group LLC increased its position in shares of PayPal by 15.5% in the third quarter. Merit Financial Group LLC now owns 164,901 shares of the credit services provider’s stock worth $11,058,000 after acquiring an additional 22,139 shares in the last quarter. Nordea Investment Management AB raised its stake in shares of PayPal by 7.9% in the 3rd quarter. Nordea Investment Management AB now owns 4,292,583 shares of the credit services provider’s stock valued at $291,338,000 after acquiring an additional 313,180 shares during the period. Rakuten Investment Management Inc. acquired a new position in shares of PayPal during the 3rd quarter valued at $13,210,000. Finally, Ariose Capital Management Ltd boosted its position in PayPal by 347.0% during the 3rd quarter. Ariose Capital Management Ltd now owns 193,100 shares of the credit services provider’s stock worth $12,949,000 after purchasing an additional 149,898 shares during the period. Hedge funds and other institutional investors own 68.32% of the company’s stock.

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.