PayPal (NASDAQ:PYPL) Stock Picked Up by Analysts at Bank of America

Key Points

• Bank of America initiated coverage of PayPal with an “underperform” rating, adding to a mixed analyst outlook. The stock has a consensus “hold” rating, with an average price target of $56.28.
• PayPal shares traded near $56.17, while the company’s latest quarterly results exceeded expectations: EPS was $1.38 versus $1.28 expected, and revenue rose 4.8% year over year to $8.68 billion.
• Institutional investors own approximately 68.32% of PayPal, including major position increases from Bank of America and Amundi; insiders sold roughly $848,000 worth of shares during the last quarter.

Research analysts at Bank of America began coverage on shares of PayPal (NASDAQ:PYPL - Get Free Report) in a report released on Thursday. The firm set an "underperform" rating on the credit services provider's stock.

A number of other analysts also recently issued reports on the stock. Susquehanna increased their target price on shares of PayPal from $63.00 to $67.00 and gave the stock a "positive" rating in a research report on Wednesday, July 29th. Royal Bank Of Canada boosted their price objective on shares of PayPal from $65.00 to $70.00 and gave the stock an "outperform" rating in a research note on Monday, August 31st. Barclays decreased their price objective on shares of PayPal from $57.00 to $56.00 and set an "equal weight" rating for the company in a research note on Friday, October 9th. Robert W. Baird increased their price objective on shares of PayPal from $50.00 to $57.00 and gave the stock a "neutral" rating in a research report on Wednesday, July 29th. Finally, Piper Sandler raised their target price on shares of PayPal from $42.00 to $59.00 and gave the company a "neutral" rating in a research note on Monday, August 17th. Nine investment analysts have rated the stock with a Buy rating, thirty-three have assigned a Hold rating and five have given a Sell rating to the company. Based on data from MarketBeat.com, PayPal presently has a consensus rating of "Hold" and a consensus target price of $56.28.

PayPal Trading Up 0.1%

Shares of PYPL traded up $0.07 during trading hours on Thursday, hitting $56.17. The stock had a trading volume of 834,707 shares, compared to its average volume of 17,371,576. The company has a debt-to-equity ratio of 0.55, a quick ratio of 1.29 and a current ratio of 1.29. The firm has a market cap of $48.06 billion, a P/E ratio of 10.60, a P/E/G ratio of 1.20 and a beta of 1.27. The company's fifty day simple moving average is $56.10 and its 200 day simple moving average is $50.41. PayPal has a 12-month low of $38.46 and a 12-month high of $79.21.

PayPal (NASDAQ:PYPL - Get Free Report) last issued its earnings results on Tuesday, July 28th. The credit services provider reported $1.38 earnings per share for the quarter, beating analysts' consensus estimates of $1.28 by $0.10. The firm had revenue of $8.68 billion for the quarter, compared to analysts' expectations of $8.47 billion. PayPal had a return on equity of 24.39% and a net margin of 14.36%. The firm's revenue for the quarter was up 4.8% compared to the same quarter last year. During the same quarter last year, the firm earned $1.40 earnings per share. Equities research analysts forecast that PayPal will post 5.38 EPS for the current fiscal year.

Insider Buying and Selling

In other news, insider Suzan Kereere sold 3,379 shares of the firm's stock in a transaction dated Thursday, September 3rd. The stock was sold at an average price of $55.72, for a total transaction 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 ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Frank Keller sold 4,612 shares of PayPal stock in a transaction dated Thursday, September 3rd. The stock was sold at an average price of $55.43, for a total value of $255,643.16. Following the sale, the insider directly owned 41,567 shares in the company, valued at approximately $2,304,058.81. The trade was a 9.99% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 14,774 shares of company stock valued at $848,095 in the last quarter. Company insiders own 0.63% of the company's stock.

Institutional Investors Weigh In On PayPal

Several hedge funds and other institutional investors have recently bought and sold shares of the business. BlackRock Inc. acquired a new position in PayPal during the 2nd quarter valued at about $3,236,989,000. Bank of America Corp DE grew its position in shares of PayPal by 67.9% during the 1st quarter. Bank of America Corp DE now owns 25,614,720 shares of the credit services provider's stock worth $1,158,554,000 after buying an additional 10,356,256 shares during the period. Amundi raised its stake in shares of PayPal by 227.6% during the first quarter. Amundi now owns 13,804,208 shares of the credit services provider's stock worth $624,364,000 after buying an additional 9,590,488 shares during the last quarter. Primecap Management Co. CA bought a new stake in shares of PayPal during the second quarter worth approximately $422,092,000. Finally, Corient Private Wealth LP bought a new stake in shares of PayPal during the second quarter worth approximately $20,758,000. 68.32% of the stock is currently owned by hedge funds and other institutional investors.

Key Stories Impacting PayPal

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: PayPal’s valuation remains a key bullish argument: the stock trades at less than 10 times expected earnings, while the company continues to generate respectable growth and earnings. Its latest quarterly results exceeded estimates, with revenue rising 4.8% year over year and EPS surpassing consensus. Is PayPal Stock a Buy at Less Than 10 Times Next Year's Earnings Guidance?
• Positive Sentiment: Investor David Einhorn’s reported new position in PayPal is supporting the view that the shares may be undervalued and could benefit from a turnaround or strategic changes. PayPal has also been included in several lists of fintech and mobile-payment stocks positioned to benefit from digital-wallet adoption. David Einhorn Opens New Position in PayPal Stock
• Neutral Sentiment: A hotter-than-expected inflation report pushed Treasury yields higher, pressuring consumer-lending and buy-now-pay-later stocks such as Affirm and Klarna. PayPal held up comparatively well, suggesting limited direct sensitivity to that session’s interest-rate shock. Affirm Falls as Inflation Lifts Yields
• Negative Sentiment: Bank of America resumed coverage with a Sell rating and a $53 price target, implying roughly 5.5% downside from recent levels. Goldman Sachs also issued a Sell rating, while Bernstein assigned a Hold, adding to investor concerns about PayPal’s slower growth and competitive challenges. BofA Issues Sell Rating on PayPal
• Negative Sentiment: Commentary continues to highlight PayPal’s substantial decline from its 2021 peak and the rise of competing payment platforms. The stock’s low multiple may therefore reflect doubts about whether management can restore stronger, durable growth rather than representing a straightforward bargain. Is PayPal Stock a Buy, Sell, or Hold?

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, digital wallets, and payment processing for merchants.

The company's principal consumer brands include PayPal and Venmo, while its merchant and commerce offerings include Braintree, PayPal Zettle, and PayPal Complete Payments. PayPal also operates Xoom, a service for international money transfers, and Honey, a shopping and rewards platform.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.