Deutsche Bank Aktiengesellschaft Lowers PayPal (NASDAQ:PYPL) Price Target to $45.00

Key Points

• Deutsche Bank cut its price target on PayPal from $50 to $45, implying only a slight downside from the stock’s previous close.
• Analyst sentiment remains cautious overall: PayPal now has an average Hold rating, with 8 Buy, 32 Hold, and 5 Sell ratings across covering analysts.
• Despite the lower target, PayPal recently posted better-than-expected Q1 results, including EPS of $1.34 versus estimates of $1.27 and revenue of $8.35 billion, up 7.2% year over year.

PayPal (NASDAQ:PYPL - Get Free Report) had its target price reduced by investment analysts at Deutsche Bank Aktiengesellschaft from $50.00 to $45.00 in a research report issued on Monday,MarketScreener reports. Deutsche Bank Aktiengesellschaft's price objective points to a potential downside of 0.07% from the stock's previous close.

A number of other equities analysts have also recently issued reports on the stock. Loop Capital started coverage on shares of PayPal in a report on Tuesday, March 31st. They issued a "hold" rating and a $46.00 price objective for the company. Weiss Ratings reaffirmed a "hold (c-)" rating on shares of PayPal in a research report on Friday. Citizens Jmp restated a "market perform" rating on shares of PayPal in a research note on Wednesday, February 4th. Needham & Company LLC reissued a "hold" rating on shares of PayPal in a report on Tuesday, May 5th. Finally, Zacks Research raised PayPal from a "strong sell" rating to a "hold" rating in a report on Friday, April 17th. Eight research 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's stock. Based on data from MarketBeat.com, the stock has an average rating of "Hold" and an average target price of $55.88.

PayPal Price Performance

PYPL opened at $45.03 on Monday. The company has a debt-to-equity ratio of 0.47, a quick ratio of 1.26 and a current ratio of 1.26. The stock's 50 day moving average price is $46.71 and its 200-day moving average price is $53.65. The stock has a market capitalization of $39.72 billion, a PE ratio of 8.46, a price-to-earnings-growth ratio of 1.13 and a beta of 1.39. PayPal has a 52-week low of $38.46 and a 52-week high of $79.50.

PayPal (NASDAQ:PYPL - Get Free Report) last announced its earnings results on Tuesday, May 5th. The credit services provider reported $1.34 EPS for the quarter, beating analysts' consensus estimates of $1.27 by $0.07. PayPal had a net margin of 15.00% and a return on equity of 25.02%. The firm had revenue of $8.35 billion for the quarter, compared to analysts' expectations of $8.05 billion. During the same quarter in the previous year, the business posted $1.33 EPS. The company's quarterly revenue was up 7.2% on a year-over-year basis. On average, equities research analysts predict that PayPal will post 5.32 EPS for the current year.

Insiders Place Their Bets

In related news, CAO Chris Natali sold 1,337 shares of the firm's stock in a transaction that occurred on Wednesday, April 29th. The stock was sold at an average price of $49.46, for a total transaction of $66,128.02. Following the completion of the sale, the chief accounting officer directly owned 1,586 shares of the company's stock, valued at approximately $78,443.56. This trade represents a 45.74% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Frank Keller sold 10,732 shares of the company's stock in a transaction on Wednesday, April 29th. The shares were sold at an average price of $49.96, for a total value of $536,170.72. Following the completion of the transaction, the insider directly owned 41,567 shares in the company, valued at $2,076,687.32. This trade represents a 20.52% decrease in their position. 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. Insiders sold a total of 96,199 shares of company stock valued at $4,294,018 over the last 90 days. Insiders own 0.63% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of the company. Norges Bank purchased a new position in PayPal during the 4th quarter valued at about $949,758,000. Vanguard Group Inc. boosted its stake in shares of PayPal by 6.5% during the fourth quarter. Vanguard Group Inc. now owns 90,376,927 shares of the credit services provider's stock valued at $5,276,205,000 after purchasing an additional 5,534,462 shares in the last quarter. SG Americas Securities LLC boosted its stake in shares of PayPal by 355.1% during the first quarter. SG Americas Securities LLC now owns 4,967,170 shares of the credit services provider's stock valued at $224,665,000 after purchasing an additional 3,875,688 shares in the last quarter. AQR Capital Management LLC increased its holdings in PayPal by 143.4% during the fourth quarter. AQR Capital Management LLC now owns 5,089,586 shares of the credit services provider's stock valued at $297,130,000 after buying an additional 2,998,286 shares during the period. Finally, Dimensional Fund Advisors LP raised its stake in PayPal by 35.9% in the third quarter. Dimensional Fund Advisors LP now owns 8,177,536 shares of the credit services provider's stock worth $548,520,000 after buying an additional 2,160,227 shares in the last quarter. 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: Analysts are highlighting PayPal’s cost-cutting efforts and buyback program as the main reasons the stock could rebound if margins and per-share earnings improve. PayPal: Cost Cuts And Buybacks Are The Real Bull Case
• Positive Sentiment: PayPal also announced a new multi-year partnership with the Seattle Seahawks, extending its digital payments footprint and adding another visible brand partnership after its recent NFL deal. Seattle Seahawks and PayPal announce PayPal as the team's Official Fan-to-Fan Payments & Exclusive Digital Ticket Payment Processing Partner
• Neutral Sentiment: Venmo is rolling out a major redesign aimed at making the app more social and easier to use, which could help engagement over time but is not yet a measurable financial catalyst. Venmo's biggest makeover in years comes at a very interesting time
• Neutral Sentiment: Zacks notes that PayPal is attracting heavy investor attention, but the article is more about market interest than any new fundamental development. PayPal Holdings, Inc. (PYPL) is Attracting Investor Attention: Here is What You Should Know
• Negative Sentiment: Bearish commentary continues to focus on PayPal’s slower growth, competition, and the market’s harsh reaction to Q1 results, which helps explain why sentiment remains cautious despite solid revenue growth. PayPal Faces a Brutal Reality: 3 Real Problems Hurting the Stock Now
• Negative Sentiment: Another article framed PayPal as either a value trap or a value opportunity after a weak post-earnings reaction, underscoring that investors are still split on whether the stock can recover quickly. Is PayPal (PYPL) a Value Trap or a Value Opportunity after Q1?

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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