PayPal (NASDAQ:PYPL) Stock Moved Down to Hold by Freedom Broker

Key Points

• Freedom Broker downgraded PayPal from “strong buy” to “hold.” The article’s related news summary says the firm also cut its price target from $72 to $63, citing weak momentum in branded checkout.
• Analyst opinion is broadly cautious: MarketBeat reports an average “hold” rating, with 8 Buy, 32 Hold, and 6 Sell ratings and an average price target of $55.94.
• PayPal reported quarterly EPS of $1.45, beating the $1.31 estimate, while revenue of $8.58 billion fell short of expectations; revenue was up 2% year over year.

PayPal (NASDAQ:PYPL - Get Free Report) was downgraded by equities researchers at Freedom Broker from a "strong-buy" rating to a "hold" rating in a research report issued on Tuesday, Zacks reports.

A number of other analysts have also issued reports on PYPL. William Blair reiterated a "market perform" rating on shares of PayPal in a report on Wednesday, July 15th. UBS Group cut their price target on PayPal from $61.00 to $60.00 and set a "neutral" rating on the stock in a report on Wednesday, October 28th. Jefferies Financial Group raised PayPal from a "hold" rating to a "buy" rating in a research report on Tuesday, July 28th. BNP Paribas Exane upped their price objective on PayPal from $43.50 to $52.00 and gave the stock a "neutral" rating in a research note on Tuesday, July 21st. Finally, Clear Str raised PayPal to a "hold" rating in a research report on Thursday, July 16th. Eight research analysts have rated the stock with a Buy rating, thirty-two have given a Hold rating and six have issued a Sell rating to the company's stock. According to MarketBeat.com, the stock presently has an average rating of "Hold" and an average price target of $55.94.

PayPal Stock Up 3.4%

NASDAQ PYPL opened at $60.20 on Tuesday. The stock has a 50 day moving average price of $55.20 and a 200-day moving average price of $50.07. PayPal has a one year low of $38.46 and a one year high of $68.21. The company has a debt-to-equity ratio of 0.56, a quick ratio of 1.26 and a current ratio of 1.26. The company has a market capitalization of $50.01 billion, a P/E ratio of 11.49, a P/E/G ratio of 1.20 and a beta of 1.33.

PayPal (NASDAQ:PYPL - Get Free Report) last announced its quarterly earnings results on Tuesday, October 27th. The credit services provider reported $1.45 earnings per share for the quarter, topping the consensus estimate of $1.31 by $0.14. The company had revenue of $8.58 billion for the quarter, compared to analysts' expectations of $8.71 billion. PayPal had a net margin of 13.78% and a return on equity of 24.39%. PayPal's quarterly revenue was up 2.0% on a year-over-year basis. During the same quarter in the previous year, the business posted $1.34 earnings per share. As a group, equities analysts predict that PayPal will post 5.59 EPS for the current fiscal year.

Insider Transactions at PayPal

In related news, insider Suzan Kereere sold 3,379 shares of PayPal 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 sale, the insider directly owned 30,983 shares in the company, valued at $1,726,372.76. This trade represents a 9.83% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Frank Keller sold 732 shares of the business's stock in a transaction that occurred on Wednesday, October 28th. The stock was sold at an average price of $55.37, for a total transaction of $40,530.84. Following the sale, the insider directly owned 41,567 shares in the company, valued at approximately $2,301,564.79. This represents a 1.73% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 13,437 shares of company stock worth $768,417. Insiders own 0.63% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in PYPL. BlackRock Inc. purchased a new position in PayPal during the second quarter valued at $3,236,989,000. Bank of America Corp DE purchased a new stake in shares of PayPal during the second quarter worth about $975,563,000. Primecap Management Co. CA purchased a new stake in shares of PayPal during the second quarter worth about $422,092,000. Corient Private Wealth LP acquired a new position in shares of PayPal during the 2nd quarter worth about $20,758,000. Finally, Amundi raised its position in shares of PayPal by 227.6% during the 1st quarter. Amundi now owns 13,804,208 shares of the credit services provider's stock worth $624,364,000 after purchasing an additional 9,590,488 shares during the last quarter. Hedge funds and other institutional investors own 68.32% of the company's stock.

Trending Headlines about PayPal

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: PayPal shares moved higher alongside other fintech stocks as investors reacted to Block’s earnings beat and raised outlook. The article frames the move as sector-wide momentum rather than a PayPal-specific catalyst. Block Surges 16% on Earnings Beat and Raised Outlook; SoFi and PayPal Advance 4%
• Positive Sentiment: PayPal and Venmo expanded their payout partnership with LianLian Global, broadening access for creators, marketplaces and contractors across 96 markets. The added reach could support cross-border use of PayPal’s wallets. How Investors Are Reacting To PayPal (PYPL) LianLian Payout Partnership
• Neutral Sentiment: Payments software provider Justt introduced PayPal Alerts, which gives merchants pre-chargeback warnings. The feature may help merchants manage disputes, but it is a third-party product announcement, not a PayPal launch. Justt Launches 'Flows,' Its New Chargeback Automation Engine
• Negative Sentiment: Freedom Broker downgraded PayPal to Hold from Buy and cut its price target to $63 from $72, citing a lack of reacceleration in branded checkout. This underscores concerns that PayPal’s core checkout business is struggling to regain momentum. Freedom Broker cuts PayPal to Hold as branded checkout stalls

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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