PayPal (NASDAQ:PYPL) Rating Increased to Strong Sell at Barclays

Key Points

• Barclays rated PayPal as a "strong sell", adding to a generally cautious analyst view on the stock. Overall, PayPal has a consensus rating of Hold with an average price target of $53.91.
• PayPal reported better-than-expected quarterly results, with EPS of $1.34 versus estimates of $1.27 and revenue of $8.35 billion versus expectations of $8.05 billion. Revenue rose 7.2% year over year.
• Shares were trading up 1.8% around $45.32, while recent insider selling and mixed analyst actions highlight ongoing uncertainty around the stock. The company also has been expanding its PYUSD stablecoin to Polygon, which could support longer-term growth in payments and crypto adoption.

PayPal (NASDAQ:PYPL - Get Free Report) was upgraded by Barclays to a "strong sell" rating in a research report issued on Tuesday,Zacks.com reports.

Other equities research analysts also recently issued research reports about the company. BNP Paribas Exane raised their price target on PayPal from $41.00 to $43.50 and gave the company a "neutral" rating in a research report on Friday, April 10th. Bank of America reduced their price objective on PayPal from $55.00 to $53.00 and set a "neutral" rating on the stock in a research report on Wednesday, May 6th. BMO Capital Markets began coverage on PayPal in a report on Tuesday, April 21st. They set a "market perform" rating and a $52.00 price objective on the stock. Citigroup boosted their target price on PayPal from $42.00 to $48.00 and gave the stock a "neutral" rating in a research report on Wednesday, April 8th. Finally, Weiss Ratings reaffirmed a "hold (c-)" rating on shares of PayPal in a research note on Friday, May 8th. Seven analysts have rated the stock with a Buy rating, thirty-two have given a Hold rating and six have assigned a Sell rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of "Hold" and an average price target of $53.91.

PayPal Trading Up 1.8%

Shares of PayPal stock opened at $45.32 on Tuesday. The company has a debt-to-equity ratio of 0.47, a current ratio of 1.26 and a quick ratio of 1.26. PayPal has a 1 year low of $38.46 and a 1 year high of $79.50. The firm has a market cap of $39.98 billion, a PE ratio of 8.50, a PEG ratio of 1.11 and a beta of 1.33. The company has a 50 day simple moving average of $44.10 and a two-hundred day simple moving average of $47.48.

PayPal (NASDAQ:PYPL - Get Free Report) last posted its quarterly earnings data on Tuesday, May 5th. The credit services provider reported $1.34 earnings per share for the quarter, beating the consensus estimate 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 last year, the company posted $1.33 EPS. The business's quarterly revenue was up 7.2% on a year-over-year basis. Analysts expect that PayPal will post 5.32 earnings per share for the current fiscal year.

Insider Buying and Selling at PayPal

In related news, insider Frank Keller sold 4,612 shares of PayPal stock in a transaction on Wednesday, June 3rd. The shares were sold at an average price of $42.54, for a total value of $196,194.48. Following the transaction, the insider directly owned 41,567 shares of the company's stock, valued at $1,768,260.18. The trade was a 9.99% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. 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 on Wednesday, June 3rd. The shares were sold at an average price of $42.79, for a total transaction of $144,587.41. Following the sale, the insider owned 30,983 shares of the company's stock, valued at $1,325,762.57. This represents a 9.83% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 20,612 shares of company stock worth $966,623. 0.63% of the stock is currently owned by insiders.

Institutional Investors Weigh In On PayPal

Large investors have recently added to or reduced their stakes in the company. Vanguard Group Inc. increased its position in PayPal by 6.5% during the 4th 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 during the period. Rule One Partners LLC purchased a new stake in shares of PayPal in the 4th quarter worth about $2,043,000. Step Capital Management Pte. Ltd. purchased a new stake in shares of PayPal in the 4th quarter worth about $6,130,000. Easterly Investment Partners LLC boosted its stake in shares of PayPal by 705.2% during the 4th quarter. Easterly Investment Partners LLC now owns 100,651 shares of the credit services provider's stock valued at $5,876,000 after purchasing an additional 88,151 shares in the last quarter. Finally, Greenwich Wealth Management LLC boosted its stake in shares of PayPal by 61.0% during the 4th quarter. Greenwich Wealth Management LLC now owns 125,830 shares of the credit services provider's stock valued at $7,346,000 after purchasing an additional 47,653 shares in the last quarter. Institutional investors own 68.32% of the company's stock.

PayPal News Summary

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: PayPal expanded PYUSD to Polygon, giving its stablecoin native access to a large settlement network and potentially improving transaction utility for merchants and users. PayPal boosts its stablecoin as banks prepare to launch a shared one
• Positive Sentiment: Analysts and market commentary suggest the PYUSD launch on Polygon is helping sentiment around PYPL, as the move could increase stablecoin adoption and reinforce PayPal’s crypto strategy. PayPal Stock (PYPL) Ticks Up as PYUSD Goes Native on Polygon
• Positive Sentiment: PayPal’s continued PYUSD expansion via Paxos and Polygon highlights efforts to build a broader stablecoin settlement network, which may support future growth in payments and fintech services. PayPal’s PYUSD Stablecoin Arrives Natively on Polygon via Paxos Partnership
• Neutral Sentiment: PayPal also received a bearish analyst initiation from Barclays, but the rating change does not appear to be the main driver of today’s trading action. PayPal Holdings (PYPL) Gets a Sell from Barclays
• Neutral Sentiment: Broader market risk-off pressure weighed on financial stocks after geopolitical headlines, which may have created some short-term volatility in PYPL. PayPal, Ameriprise Financial, and Ally Financial Shares Are Falling, What You Need To Know
• Neutral Sentiment: PayPal is also being discussed for its AI-driven cost savings and BNPL growth strategy, but these items are more long-term than immediate stock catalysts. PayPal AI Push: Will $1.5B Savings Drive Faster Growth Ahead?

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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