PayPal (NASDAQ:PYPL) Issues Earnings Results

Key Points

• PayPal reported $1.40 EPS for the quarter, exceeding expectations of $1.30, and updated its Q3 2025 guidance to 1.180-1.220 EPS and FY 2025 guidance to 5.150-5.300 EPS.
• Analysts have mixed opinions on PayPal, with price targets reduced by some, such as Keefe, Bruyette & Woods lowering theirs from $104.00 to $85.00, while others like Robert W. Baird raised theirs from $78.00 to $79.00.
• Insiders at PayPal sold a total of 11,796 shares over the last 90 days, indicating a 7.91% decrease in ownership for one insider and an 18.43% decrease for another.

PayPal (NASDAQ:PYPL - Get Free Report) released its quarterly earnings results on Tuesday. The credit services provider reported $1.40 EPS for the quarter, topping the consensus estimate of $1.30 by $0.10, Zacks reports. PayPal had a return on equity of 24.59% and a net margin of 14.26%. During the same quarter in the previous year, the firm earned $1.19 earnings per share. PayPal updated its Q3 2025 guidance to 1.180-1.220 EPS and its FY 2025 guidance to 5.150-5.300 EPS.

PayPal Trading Up 0.3%

PayPal stock opened at $78.22 on Tuesday. The stock has a market cap of $76.07 billion, a P/E ratio of 17.50, a PEG ratio of 1.28 and a beta of 1.45. PayPal has a fifty-two week low of $55.85 and a fifty-two week high of $93.66. The firm's fifty day moving average price is $73.31 and its 200-day moving average price is $72.69. The company has a debt-to-equity ratio of 0.56, a quick ratio of 1.30 and a current ratio of 1.30.

Analyst Ratings Changes

Several analysts have weighed in on PYPL shares. Keefe, Bruyette & Woods lowered their target price on PayPal from $104.00 to $85.00 and set an "outperform" rating on the stock in a report on Monday, March 31st. Robert W. Baird raised their price target on PayPal from $78.00 to $79.00 and gave the stock an "outperform" rating in a research note on Wednesday, April 30th. Needham & Company LLC restated a "hold" rating on shares of PayPal in a report on Wednesday, April 30th. UBS Group dropped their target price on PayPal from $88.00 to $75.00 and set a "neutral" rating on the stock in a report on Wednesday, April 30th. Finally, Truist Financial initiated coverage on shares of PayPal in a research note on Monday, June 2nd. They set a "sell" rating and a $68.00 price objective on the stock. Two investment analysts have rated the stock with a sell rating, seventeen have issued a hold rating, eighteen have issued a buy rating and one has given a strong buy rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of "Hold" and an average target price of $83.13.

Insider Activity at PayPal

In other news, insider Suzan Kereere sold 4,162 shares of the stock in a transaction dated Friday, June 6th. The shares were sold at an average price of $73.24, for a total transaction of $304,824.88. Following the completion of the sale, the insider directly owned 48,483 shares in the company, valued at approximately $3,550,894.92. This represents a 7.91% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, EVP Diego Scotti sold 3,839 shares of the stock in a transaction dated Friday, June 6th. The stock was sold at an average price of $73.24, for a total transaction of $281,168.36. Following the sale, the executive vice president owned 16,989 shares of the company's stock, valued at approximately $1,244,274.36. This represents a 18.43% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 11,796 shares of company stock valued at $863,028 over the last 90 days. 0.08% of the stock is owned by insiders.

Hedge Funds Weigh In On PayPal

An institutional investor recently bought a new position in PayPal stock. Revolve Wealth Partners LLC purchased a new position in PayPal Holdings, Inc. (NASDAQ:PYPL - Free Report) in the fourth quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor purchased 2,910 shares of the credit services provider's stock, valued at approximately $248,000. 68.32% of the stock is owned by institutional investors.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.