PayPal (NASDAQ:PYPL) Earns Neutral Rating from BTIG Research

Key Points

• BTIG Research reaffirmed its neutral rating on PayPal, while the broader analyst consensus remains “Hold,” with nine Buy, 32 Hold and five Sell ratings and an average price target of $56.42.
• PayPal shares traded around $56.13, near the consensus target, with a market capitalization of approximately $48 billion.
• Quarterly adjusted earnings of $1.45 per share beat estimates of $1.31, but revenue of $8.58 billion fell short of the $8.71 billion forecast, underscoring ongoing concerns about slowing growth and competitive pressure.

PayPal (NASDAQ:PYPL - Get Free Report)'s stock had its "neutral" rating restated by investment analysts at BTIG Research in a research report issued on Tuesday, Benzinga reports.

PYPL has been the topic of several other reports. BNP Paribas Exane lifted their target price on shares of PayPal from $43.50 to $52.00 and gave the stock a "neutral" rating in a research report on Tuesday, July 21st. Piper Sandler upped their price target on shares of PayPal from $42.00 to $59.00 and gave the company a "neutral" rating in a research report on Monday, August 17th. Wells Fargo & Company raised their price target on shares of PayPal from $48.00 to $56.00 and gave the company an "equal weight" rating in a research note on Wednesday, July 29th. Bank of America began coverage on shares of PayPal in a research note on Thursday, October 15th. They set an "underperform" rating for the company. Finally, HSBC assumed coverage on shares of PayPal in a report on Friday, July 24th. They set a "buy" rating on the stock. Nine investment analysts have rated the stock with a Buy rating, thirty-two have issued a Hold rating and five have assigned a Sell rating to the company. According to data from MarketBeat.com, the stock has an average rating of "Hold" and a consensus target price of $56.42.

PayPal Price Performance

Shares of NASDAQ PYPL traded up $1.14 during midday trading on Tuesday, reaching $56.13. 11,638,195 shares of the company were exchanged, compared to its average volume of 17,209,346. The stock's 50-day moving average price is $55.85 and its 200-day moving average price is $50.09. The stock has a market cap of $48.02 billion, a P/E ratio of 10.60, a PEG 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 $79.21.

PayPal (NASDAQ:PYPL - Get Free Report) last announced its quarterly earnings results on Tuesday, October 27th. The credit services provider reported $1.45 EPS for the quarter, beating analysts' consensus estimates of $1.31 by $0.14. The company had revenue of $8.58 billion during the quarter, compared to analysts' expectations of $8.71 billion. PayPal had a return on equity of 24.39% and a net margin of 14.36%. PayPal's revenue was up 2.0% compared to the same quarter last year. During the same period in the prior year, the company earned $1.34 EPS. On average, sell-side analysts anticipate that PayPal will post 5.39 earnings per share for the current fiscal year.

Insider Buying and Selling at PayPal

In other news, CAO Chris Natali sold 552 shares of the business's stock in a transaction dated Thursday, September 3rd. The stock was sold at an average price of $54.80, for a total value of $30,249.60. Following the transaction, the chief accounting officer directly owned 2,400 shares of the company's stock, valued at $131,520. The trade was a 18.70% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Suzan Kereere sold 3,379 shares of the business's stock in a transaction that occurred on Thursday, September 3rd. The shares were sold at an average price of $55.72, for a total value of $188,277.88. Following the completion of the transaction, the insider directly owned 30,983 shares in the company, valued at approximately $1,726,372.76. This trade represents a 9.83% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 14,774 shares of company stock valued at $848,095. 0.63% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in PYPL. Allied Private Wealth LLC acquired a new stake in PayPal in the 2nd quarter valued at $25,000. Robinswood Financial LLC bought a new position in shares of PayPal in the first quarter valued at $26,000. Mowery & Schoenfeld Wealth Management LLC acquired a new position in shares of PayPal during the second quarter valued at about $27,000. Johnson Financial Group Inc. bought a new stake in shares of PayPal during the second quarter worth about $27,000. Finally, Danske Bank A S acquired a new stake in shares of PayPal in the 2nd quarter worth about $29,000. 68.32% of the stock is owned by institutional investors and hedge funds.

Key Stories Impacting PayPal

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: Adjusted EPS beat expectations: PayPal reported adjusted earnings of $1.45 per share, above the $1.31 consensus estimate and up from $1.34 a year earlier. PayPal Q3 Earnings Top Estimates
• Positive Sentiment: Full-year profit outlook raised: Management increased its 2026 adjusted earnings guidance, citing cost reductions, workforce efficiencies and progress in its turnaround strategy. PayPal is targeting approximately $700 million in cost savings by year-end. PayPal Raises 2026 Profit Forecast
• Positive Sentiment: Holiday-quarter profitability may exceed expectations: Reports indicated PayPal’s adjusted profit forecast for the upcoming quarter is above Wall Street views, supporting optimism that the turnaround is beginning to improve profitability. PayPal Raises Guidance as Turnaround Strategy Shows Promise
• Neutral Sentiment: Transaction activity grew, but the quality of growth remains under scrutiny: Payment volume increased, while merchant volume and several key metrics reportedly fell short of estimates. Investors are watching checkout trends, take rates and competitive pressure for evidence that growth can accelerate.
• Negative Sentiment: Revenue missed expectations: Third-quarter revenue rose only 2% year over year to $8.58 billion, below the $8.71 billion consensus estimate. The revenue shortfall initially pushed shares lower despite the earnings beat. PayPal Stock Falls on Q3 Revenue Miss
• Negative Sentiment: Growth and competitive concerns persist: Analysts remain cautious about market-share pressure, pricing and a potentially prolonged recovery. One recent bearish view maintained a $45 price target, below the current trading range. PayPal Sell Rating Reaffirmed

About PayPal

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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