Bank of America Issues Positive Forecast for PayPal (NASDAQ:PYPL) Stock Price

Key Points

• Bank of America raised its price target on PayPal from $48 to $55 while maintaining a "neutral" rating, implying roughly a 6.9% upside from the prior close.
• PayPal's latest quarter missed estimates—EPS $1.23 vs. $1.29 expected and revenue $8.68B vs. $8.82B—and analysts' consensus remains a Hold with an average target around $56.80.
• Sentiment is mixed: high-profile buying and turnaround arguments support upside, but significant insider selling (87,608 shares worth $3.83M last quarter) and multiple class-action notices present near-term headwinds.

PayPal (NASDAQ:PYPL - Get Free Report) had its price target increased by investment analysts at Bank of America from $48.00 to $55.00 in a research note issued on Tuesday,Benzinga reports. The firm presently has a "neutral" rating on the credit services provider's stock. Bank of America's price target points to a potential upside of 6.88% from the stock's previous close.

A number of other research firms have also weighed in on PYPL. Zacks Research raised shares of PayPal from a "strong sell" rating to a "hold" rating in a research note on Friday. Piper Sandler lowered their price objective on shares of PayPal from $76.00 to $74.00 and set a "neutral" rating for the company in a research note on Wednesday, January 14th. Wall Street Zen lowered shares of PayPal from a "buy" rating to a "hold" rating in a research note on Sunday, January 18th. Stephens reduced their target price on shares of PayPal from $65.00 to $45.00 and set an "equal weight" rating for the company in a report on Wednesday, February 4th. Finally, KGI Securities reiterated a "hold" rating and issued a $55.00 target price on shares of PayPal in a report on Monday, March 2nd. Seven equities research analysts have rated the stock with a Buy rating, thirty-three have given a Hold rating and five have given a Sell rating to the stock. According to data from MarketBeat.com, the stock has an average rating of "Hold" and an average target price of $56.80.

PayPal Stock Up 1.3%

NASDAQ:PYPL opened at $51.46 on Tuesday. PayPal has a 1-year low of $38.46 and a 1-year high of $79.50. The company has a 50-day moving average of $45.09 and a 200 day moving average of $55.64. The firm has a market cap of $46.30 billion, a PE ratio of 9.51, a price-to-earnings-growth ratio of 1.52 and a beta of 1.40. 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 - Get Free Report) last released its quarterly earnings data on Tuesday, February 3rd. The credit services provider reported $1.23 earnings per share for the quarter, missing analysts' consensus estimates of $1.29 by ($0.06). PayPal had a return on equity of 25.42% and a net margin of 15.77%.The business had revenue of $8.68 billion during the quarter, compared to analysts' expectations of $8.82 billion. During the same period last year, the company earned $1.19 earnings per share. The firm's revenue was up 4.0% compared to the same quarter last year. As a group, research analysts anticipate that PayPal will post 5.32 EPS for the current fiscal year.

Insider Activity at PayPal

In related news, EVP Frank Keller sold 29,581 shares of the company's stock in a transaction that occurred on Tuesday, March 3rd. The stock was sold at an average price of $46.02, for a total value of $1,361,317.62. Following the sale, the executive vice president owned 51,567 shares in the company, valued at $2,373,113.34. This represents a 36.45% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CAO Chris Natali sold 2,208 shares of the company's stock in a transaction that occurred on Tuesday, March 3rd. The shares were sold at an average price of $44.73, for a total value of $98,763.84. Following the completion of the sale, the chief accounting officer owned 1,140 shares in the company, valued at approximately $50,992.20. This represents a 65.95% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 87,608 shares of company stock worth $3,831,535 over the last quarter. Insiders own 0.63% of the company's stock.

Institutional Investors Weigh In On PayPal

Large investors have recently bought and sold shares of the company. Brighton Jones LLC boosted its position in PayPal by 15.2% in the 4th quarter. Brighton Jones LLC now owns 6,989 shares of the credit services provider's stock worth $596,000 after purchasing an additional 924 shares in the last quarter. Revolve Wealth Partners LLC purchased a new stake in PayPal in the 4th quarter worth approximately $248,000. Sivia Capital Partners LLC raised its stake in PayPal by 41.5% in the 2nd quarter. Sivia Capital Partners LLC now owns 4,470 shares of the credit services provider's stock valued at $332,000 after purchasing an additional 1,310 shares during the last quarter. United Bank raised its stake in PayPal by 40.1% in the 2nd quarter. United Bank now owns 17,388 shares of the credit services provider's stock valued at $1,292,000 after purchasing an additional 4,974 shares during the last quarter. Finally, Federated Hermes Inc. raised its stake in PayPal by 17.9% in the 2nd quarter. Federated Hermes Inc. now owns 18,909 shares of the credit services provider's stock valued at $1,405,000 after purchasing an additional 2,865 shares during the last quarter. Hedge funds and other institutional investors own 68.32% of the company's stock.

PayPal News Summary

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: High-profile investor interest: reports say Michael Burry added PayPal to his buys, which can attract momentum buyers and retail attention that lifts shares. Michael Burry (PYPL) Stock Buys PayPal
• Positive Sentiment: Bullish investor takes: analysis pieces argue the turnaround thesis (improving margins, Venmo scale, and a cheaper valuation after the pullback) still has legs, which supports buyer interest at current levels. PayPal: It's Still Not Too Late To Buy The Turnaround
• Neutral Sentiment: Peer-comparison pieces note Mastercard (MA) has stronger network advantages and higher-margin growth, framing PayPal as the lower-multiple, higher-turnaround option — useful context but not an immediate catalyst. MA vs. PYPL: Which Digital Payments Stock Has More Room to Run?
• Neutral Sentiment: General market commentary about small-cap opportunities appeared today but is unrelated to PayPal’s fundamentals; ignore for PYPL-specific positioning. 1 Small-Cap Stock with Exciting Potential and 2 We Brush Off
• Negative Sentiment: Analyst downgrade and lower price target: Mizuho cut PYPL from Outperform to Neutral and trimmed its target to $50, citing competition (notably Musk’s X Money), recent earnings misses, and insider selling — a clear near-term headwind for sentiment and broker-driven flows. Mizuho Downgrades PayPal (PYPL) to Neutral
• Negative Sentiment: Legal overhang: multiple law firms have filed or issued lead-plaintiff/deadline reminders for class actions alleging securities violations covering varying class periods — these notices (Rosen, Faruqi, Bronstein, Bragar, DJS, et al.) add litigation risk and potential future liabilities that can weigh on the stock. PYPL DEADLINE TODAY: ROSEN Encourages PayPal Investors to Secure Counsel PYPL CLASS ACTION DEADLINE TONIGHT: Faruqi & Faruqi

About PayPal

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.

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