PayPal (NASDAQ:PYPL) Shares Down 2.4% on Disappointing Earnings

PayPal Holdings, Inc. (NASDAQ:PYPL - Get Free Report) dropped 2.4% during mid-day trading on Wednesday following a weaker than expected earnings announcement. The stock traded as low as $65.64 and last traded at $66.32. Approximately 6,715,668 shares were traded during trading, a decline of 59% from the average daily volume of 16,466,773 shares. The stock had previously closed at $67.92.

The credit services provider reported $1.08 earnings per share for the quarter, missing analysts' consensus estimates of $1.22 by ($0.14). The company had revenue of $7.70 billion during the quarter, compared to analysts' expectations of $7.52 billion. PayPal had a net margin of 14.26% and a return on equity of 20.84%. The firm's revenue was up 9.4% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.86 earnings per share.

Analysts Set New Price Targets

Several research analysts recently commented on the stock. Wells Fargo & Company raised their price objective on shares of PayPal from $60.00 to $65.00 and gave the stock an "equal weight" rating in a report on Wednesday. BMO Capital Markets raised their price objective on shares of PayPal from $64.00 to $65.00 and gave the stock a "market perform" rating in a report on Wednesday. Argus downgraded shares of PayPal from a "buy" rating to a "hold" rating in a report on Friday, February 9th. BTIG Research reaffirmed a "neutral" rating on shares of PayPal in a report on Friday, January 5th. Finally, Stephens raised their price objective on shares of PayPal from $70.00 to $75.00 and gave the stock an "equal weight" rating in a report on Wednesday. Twenty-five research analysts have rated the stock with a hold rating and thirteen have issued a buy rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus target price of $72.73.

Insider Buying and Selling

In related news, SVP Frank Keller sold 7,686 shares of PayPal stock in a transaction on Friday, March 1st. The shares were sold at an average price of $60.64, for a total value of $466,079.04. Following the transaction, the senior vice president now owns 23,430 shares in the company, valued at approximately $1,420,795.20. The sale was disclosed in a filing with the SEC, which is available through the SEC website. 0.14% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On PayPal

A number of hedge funds have recently modified their holdings of the company. Hartford Financial Management Inc. increased its position in shares of PayPal by 18.8% in the fourth quarter. Hartford Financial Management Inc. now owns 1,032 shares of the credit services provider's stock valued at $63,000 after acquiring an additional 163 shares during the period. Pine Haven Investment Counsel Inc increased its position in shares of PayPal by 3.7% in the fourth quarter. Pine Haven Investment Counsel Inc now owns 4,705 shares of the credit services provider's stock valued at $289,000 after acquiring an additional 170 shares during the period. Brooks Moore & Associates Inc. increased its position in shares of PayPal by 1.3% in the third quarter. Brooks Moore & Associates Inc. now owns 14,391 shares of the credit services provider's stock valued at $841,000 after acquiring an additional 180 shares during the period. Waldron Private Wealth LLC increased its position in shares of PayPal by 1.9% in the fourth quarter. Waldron Private Wealth LLC now owns 9,619 shares of the credit services provider's stock valued at $590,000 after acquiring an additional 182 shares during the period. Finally, Indiana Trust & Investment Management CO increased its position in shares of PayPal by 18.6% in the first quarter. Indiana Trust & Investment Management CO now owns 1,175 shares of the credit services provider's stock valued at $79,000 after acquiring an additional 184 shares during the period. Hedge funds and other institutional investors own 68.32% of the company's stock.

PayPal Price Performance

The business's 50-day simple moving average is $63.39 and its 200-day simple moving average is $60.39. The stock has a market cap of $69.62 billion, a PE ratio of 17.22, a PEG ratio of 1.25 and a beta of 1.45. The company has a quick ratio of 1.29, a current ratio of 1.29 and a debt-to-equity ratio of 0.46.

PayPal Company Profile

PayPal Holdings, Inc operates a technology platform that enables digital payments on behalf of merchants and consumers worldwide. It operates a two-sided network at scale that connects merchants and consumers that enables its customers to connect, transact, and send and receive payments through online and in person, as well as transfer and withdraw funds using various funding sources, such as bank accounts, PayPal or Venmo account balance, PayPal and Venmo branded credit products comprising its installment products, credit and debit cards, and cryptocurrencies, as well as other stored value products, including gift cards and eligible rewards.