PayPal (NASDAQ:PYPL) Posts Quarterly Earnings Results, Beats Estimates By $0.17 EPS

PayPal (NASDAQ:PYPL - Get Free Report) released its quarterly earnings results on Tuesday. The credit services provider reported $1.33 EPS for the quarter, beating the consensus estimate of $1.16 by $0.17, Zacks reports. PayPal had a net margin of 13.04% and a return on equity of 23.67%. The company had revenue of $7.79 billion for the quarter, compared to analyst estimates of $7.84 billion. During the same quarter last year, the business earned $1.08 earnings per share. The firm's revenue was up 1.2% on a year-over-year basis. PayPal updated its Q2 2025 guidance to 1.290-1.310 EPS and its FY 2025 guidance to 4.950-5.100 EPS.

PayPal Trading Up 1.8 %

PYPL traded up $1.18 during trading on Tuesday, hitting $66.11. 11,942,523 shares of the company's stock were exchanged, compared to its average volume of 11,460,585. The stock has a 50 day moving average price of $66.49 and a 200 day moving average price of $78.47. PayPal has a 1 year low of $55.85 and a 1 year high of $93.66. The company has a current ratio of 1.26, a quick ratio of 1.26 and a debt-to-equity ratio of 0.48. The firm has a market cap of $64.62 billion, a P/E ratio of 16.49, a price-to-earnings-growth ratio of 1.27 and a beta of 1.60.

Insider Activity at PayPal

In related news, Director Gail J. Mcgovern sold 2,446 shares of the business's stock in a transaction that occurred on Thursday, February 27th. The stock was sold at an average price of $72.15, for a total transaction of $176,478.90. Following the transaction, the director now directly owns 29,734 shares of the company's stock, valued at approximately $2,145,308.10. The trade was a 7.60 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. 0.14% of the stock is owned by insiders.

Hedge Funds Weigh In On PayPal

A hedge fund recently bought a new stake in PayPal stock. Revolve Wealth Partners LLC purchased a new stake in PayPal Holdings, Inc. (NASDAQ:PYPL - Free Report) during the 4th quarter, according to its most recent disclosure 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 hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

Several research analysts have recently weighed in on the company. Wells Fargo & Company reduced their target price on PayPal from $80.00 to $74.00 and set an "equal weight" rating for the company in a research note on Wednesday, April 16th. Barclays decreased their price target on shares of PayPal from $110.00 to $80.00 and set an "overweight" rating on the stock in a research note on Tuesday, April 15th. Keefe, Bruyette & Woods lowered their price target on PayPal from $104.00 to $85.00 and set an "outperform" rating on the stock in a research note on Monday, March 31st. BTIG Research reissued a "neutral" rating on shares of PayPal in a research report on Tuesday, February 4th. Finally, DZ Bank upgraded shares of PayPal from a "hold" rating to a "buy" rating and set a $92.00 target price for the company in a report on Friday, February 28th. Two investment analysts have rated the stock with a sell rating, sixteen have given a hold rating, twenty have given a buy rating and one has given a strong buy rating to the company's stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $85.88.

About PayPal

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.

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