Citigroup Issues Pessimistic Forecast for PayPal (NASDAQ:PYPL) Stock Price

Key Points

• Citigroup cut PayPal’s price target from $61 to $58 while maintaining a “neutral” rating, implying only 2.53% upside. Analysts overall remain cautious, with a consensus “Hold” rating and average target of $57.17.
• PayPal’s latest quarter showed mixed results: adjusted EPS of $1.45 beat estimates of $1.31, but revenue of $8.58 billion grew just 2% year over year and missed consensus expectations of $8.71 billion.
• Shares rose 0.9% to $56.57, while institutional ownership remained substantial at 68.32%. Insiders have sold more than $727,000 of stock over the past 90 days, primarily through pre-arranged trading plans.

PayPal (NASDAQ:PYPL - Get Free Report) had its target price reduced by Citigroup from $61.00 to $58.00 in a research report issued to clients and investors on Wednesday, Benzinga reports. The brokerage currently has a "neutral" rating on the credit services provider's stock. Citigroup's price target would indicate a potential upside of 2.53% from the company's previous close.

Several other brokerages have also recently issued reports on PYPL. JPMorgan Chase & Co. increased their price objective on PayPal from $46.00 to $65.00 and gave the stock a "neutral" rating in a research note on Wednesday, July 29th. Clear Str upgraded PayPal to a "hold" rating in a report on Thursday, July 16th. BTIG Research reaffirmed a "neutral" rating on shares of PayPal in a research report on Tuesday. Susquehanna lifted their target price on PayPal from $63.00 to $67.00 and gave the company a "positive" rating in a research report on Wednesday, July 29th. Finally, Robert W. Baird upped their target price on PayPal from $50.00 to $57.00 and gave the stock a "neutral" rating in a report on Wednesday, July 29th. Nine investment analysts have rated the stock with a Buy rating, thirty-two have given a Hold rating and five have issued a Sell rating to the company. According to MarketBeat, the stock presently has an average rating of "Hold" and a consensus target price of $57.17.

PayPal Trading Up 0.9%

PYPL traded up $0.48 on Wednesday, reaching $56.57. 7,208,241 shares of the company traded hands, compared to its average volume of 17,195,203. The company has a market cap of $48.39 billion, a P/E ratio of 10.69, a price-to-earnings-growth ratio of 1.27 and a beta of 1.27. The company has a quick ratio of 1.29, a current ratio of 1.29 and a debt-to-equity ratio of 0.55. PayPal has a one year low of $38.46 and a one year high of $72.73. The firm has a fifty day simple moving average of $55.63 and a two-hundred day simple moving average of $50.05.

PayPal (NASDAQ:PYPL - Get Free Report) last issued its earnings results on Tuesday, October 27th. The credit services provider reported $1.45 EPS for the quarter, topping analysts' consensus estimates of $1.31 by $0.14. The business had revenue of $8.58 billion for the quarter, compared to the consensus estimate of $8.71 billion. PayPal had a net margin of 14.36% and a return on equity of 24.39%. The company's revenue for the quarter was up 2.0% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.34 EPS. As a group, equities research analysts expect that PayPal will post 5.39 earnings per share for the current year.

Insider Activity

In other PayPal news, CAO Chris Natali sold 552 shares of the company's stock in a transaction on Thursday, September 3rd. The stock was sold at an average price of $54.80, for a total transaction of $30,249.60. Following the completion of the sale, the chief accounting officer owned 2,400 shares in the company, valued at $131,520. This represents a 18.70% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Suzan Kereere sold 4,162 shares of the company's stock in a transaction on Tuesday, August 18th. The stock was sold at an average price of $60.96, for a total value of $253,715.52. Following the sale, the insider owned 30,983 shares of the company's stock, valued at approximately $1,888,723.68. This represents a 11.84% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 12,705 shares of company stock worth $727,886. Corporate insiders own 0.63% of the company's stock.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in PYPL. Mitsubishi UFJ Asset Management Co. Ltd. acquired a new position in shares of PayPal in the 2nd quarter valued at about $97,372,000. S&CO Inc. acquired a new stake in PayPal during the second quarter worth about $18,827,000. Swiss National Bank grew its holdings in PayPal by 4.9% during the first quarter. Swiss National Bank now owns 2,608,600 shares of the credit services provider's stock worth $117,987,000 after acquiring an additional 121,400 shares during the period. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its holdings in PayPal by 2.0% during the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 6,593,196 shares of the credit services provider's stock worth $284,694,000 after acquiring an additional 128,426 shares during the period. Finally, Bank of America Corp DE purchased a new position in PayPal during the second quarter valued at approximately $975,563,000. 68.32% of the stock is owned by institutional investors.

More PayPal News

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: PayPal reported third-quarter adjusted EPS of $1.45, above the $1.31 analyst consensus. Total payment volume increased 6% year over year to approximately $487.1 billion, while transaction revenue rose 3%. PayPal's Q3 Earnings Beat, Transaction Revenues & TPV Rises Y/Y
• Positive Sentiment: Management raised its 2026 adjusted earnings outlook and transaction-margin-dollar guidance to $15.7 billion. Venmo, financial services, cost reductions and expanding operating margins are supporting the turnaround, with the company targeting roughly $700 million in cost savings by year-end. PayPal raises 2026 profit forecast as turnaround gains traction
• Positive Sentiment: PayPal returned about $1.5 billion to shareholders through repurchases and announced a quarterly dividend of $0.14 per share, equivalent to a $0.56 annualized payout and an approximately 1% yield. PayPal Holdings stock rises on strong payment growth, buybacks and dividend news
• Neutral Sentiment: Analyst reaction was mixed: some firms raised targets on expense control and improving execution, while others maintained “Hold” ratings or trimmed targets because structural growth concerns remain.
• Negative Sentiment: Third-quarter revenue of $8.58 billion rose only 2% year over year and missed the $8.71 billion consensus. Value-added-services revenue was weak, and branded checkout continues to face competitive and execution headwinds. PayPal raises profit forecast but revenue growth remains a concern
• Negative Sentiment: PayPal is expected to remain in an investment phase during fiscal 2027, with larger planned investments potentially limiting near-term margins and earnings leverage. Analysts generally view the turnaround as progressing, but believe meaningful operating leverage may not arrive until 2028.

PayPal Company Profile

PayPal Holdings, Inc operates a global digital payments platform that enables consumers and businesses to send, receive, and manage money online and through mobile devices. Its services support online checkout, peer-to-peer payments, money transfers, payment processing, invoicing, and other commerce-related transactions.

The company's portfolio includes the PayPal and Venmo brands, Braintree's payment processing technology, and Xoom's international money transfer service. PayPal also offers merchant tools, digital wallets, payment solutions, and consumer financing products through its platform and related services.

PayPal traces its origins to 1998 and became an independent publicly traded company after separating from eBay in 2015.

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