PayPal Stock Sees Q1 Earnings Forecast Raised at KeyCorp

Key Points

• KeyCorp raised PayPal’s Q1 2027 EPS estimate to $1.43 from $1.40, while projecting $1.49 for Q3 and $1.55 for Q4 2027. The broader analyst consensus remains “Hold,” with an average price target of $55.94.
• PayPal’s latest quarter beat earnings expectations, reporting $1.45 EPS versus the $1.31 consensus, although revenue of $8.58 billion fell short of estimates. Revenue still increased 2% year over year.
• PayPal declared a quarterly dividend of $0.14 per share, equal to a $0.56 annualized payout and roughly a 1% yield, while recent insider activity showed planned sales of company stock.

PayPal Holdings, Inc. (NASDAQ:PYPL - Free Report) - Equities research analysts at KeyCorp increased their Q1 2027 earnings estimates for PayPal in a report issued on Tuesday, October 27th. KeyCorp analyst A. Schmidt now anticipates that the credit services provider will earn $1.43 per share for the quarter, up from their prior estimate of $1.40. The consensus estimate for PayPal's current full-year earnings is $5.57 per share. KeyCorp also issued estimates for PayPal's Q3 2027 earnings at $1.49 EPS and Q4 2027 earnings at $1.55 EPS.

Several other analysts have also issued reports on the company. Susquehanna boosted their price target on PayPal from $63.00 to $67.00 and gave the company a "positive" rating in a report on Wednesday, July 29th. William Blair reaffirmed a "market perform" rating on shares of PayPal in a research note on Wednesday, July 15th. Morgan Stanley lifted their price objective on PayPal from $45.00 to $46.00 and gave the company an "underweight" rating in a research report on Wednesday. Clear Str upgraded PayPal to a "hold" rating in a research note on Thursday, July 16th. Finally, Needham & Company LLC reiterated a "hold" rating on shares of PayPal in a research note on Tuesday. Eight analysts have rated the stock with a Buy rating, thirty-one have issued a Hold rating and six have given a Sell rating to the company's stock. According to data from MarketBeat.com, PayPal currently has an average rating of "Hold" and an average price target of $55.94.

PayPal Trading Up 0.7%

NASDAQ:PYPL opened at $56.95 on Friday. The company has a debt-to-equity ratio of 0.56, a current ratio of 1.26 and a quick ratio of 1.29. The firm has a market capitalization of $48.72 billion, a price-to-earnings ratio of 10.87, a price-to-earnings-growth ratio of 1.22 and a beta of 1.27. PayPal has a one year low of $38.46 and a one year high of $70.77. The business has a fifty day moving average price of $55.47 and a 200-day moving average price of $50.04.

PayPal (NASDAQ:PYPL - Get Free Report) last issued 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. PayPal had a net margin of 13.78% and a return on equity of 24.39%. The business had revenue of $8.58 billion for the quarter, compared to analysts' expectations of $8.71 billion. During the same quarter last year, the company posted $1.34 EPS. The company's revenue was up 2.0% compared to the same quarter last year.

PayPal Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, December 24th. Shareholders of record on Friday, December 4th will be paid a $0.14 dividend. This represents a $0.56 dividend on an annualized basis and a yield of 1.0%. The ex-dividend date is Friday, December 4th. PayPal's dividend payout ratio is presently 10.69%.

Insiders Place Their Bets

In other news, insider Frank Keller sold 4,612 shares of the business's 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 transaction, the insider directly owned 41,567 shares in the company, valued at $2,304,058.81. The trade was a 9.99% 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 Suzan Kereere sold 3,379 shares of the company's stock in a transaction dated Thursday, September 3rd. The stock was 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 of the company's stock, valued at approximately $1,726,372.76. This trade represents a 9.83% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 12,705 shares of company stock worth $727,886. Corporate insiders own 0.63% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. First Nebraska Trust Co purchased a new stake in shares of PayPal in the third quarter worth approximately $1,690,000. VCI Wealth Management LLC bought a new stake in shares of PayPal during the 3rd quarter worth approximately $1,144,000. Greenfield Seitz Capital Management LLC purchased a new position in PayPal during the 3rd quarter valued at $216,000. MBA Advisors LLC boosted its holdings in PayPal by 35.0% during the 3rd quarter. MBA Advisors LLC now owns 7,560 shares of the credit services provider's stock valued at $397,000 after acquiring an additional 1,959 shares during the period. Finally, Bank Julius Baer & Co. Ltd Zurich grew its position in PayPal by 22.4% in the 3rd quarter. Bank Julius Baer & Co. Ltd Zurich now owns 20,382 shares of the credit services provider's stock valued at $1,077,000 after acquiring an additional 3,730 shares during the last quarter. 68.32% of the stock is currently owned by institutional investors.

PayPal News Roundup

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: PayPal’s third-quarter earnings exceeded expectations, with transaction revenue increasing 3% year over year and total payment volume rising 6%. Management also raised its 2026 earnings outlook, with Venmo and financial-services products helping offset weakness in core checkout. PayPal Q3 Earnings Call Highlights Growth and 2027 Investments
• Positive Sentiment: Some investors view PayPal as undervalued, citing its low earnings multiple, strong free cash flow and continued share-repurchase capacity. Cost controls and early progress in the turnaround are also supporting the investment case. Is PayPal Stock a Value or a Value Trap?
• Neutral Sentiment: KeyCorp made mixed adjustments to its 2027 forecasts, raising Q1 EPS expectations to $1.43 and Q3 estimates to $1.49, but lowering its Q4 forecast to $1.55 from $1.58. The changes suggest modestly uneven expectations rather than a major shift in the outlook.
• Neutral Sentiment: PayPal declared a quarterly dividend of $0.14 per share, equivalent to a $0.56 annualized payout and approximately a 1% yield. The dividend adds shareholder support but is unlikely to materially change the near-term valuation.
• Negative Sentiment: Barclays downgraded PayPal to Underweight and cut its price target to $53 from $56, citing slowing growth in the core checkout business, secular pressure on the branded checkout button and a lower probability of a takeover. Barclays lowers PayPal stock to Underweight on slowing fundamentals
• Negative Sentiment: Citigroup lowered its price target to $58 and maintained a Neutral rating, while Canaccord Genuity and Needham reiterated Hold ratings and BTIG maintained Neutral. Analysts remain concerned that planned 2027 investments could limit near-term earnings growth, particularly after PayPal’s revenue missed estimates despite the earnings beat. Citigroup Has Lowered Expectations for PayPal Stock Price

PayPal Company Profile

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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