PayPal (NASDAQ:PYPL) Sees Large Volume Increase After Strong Earnings

PayPal Holdings, Inc. (NASDAQ:PYPL - Get Free Report) saw unusually-high trading volume on Tuesday following a stronger than expected earnings report. Approximately 5,799,903 shares changed hands during mid-day trading, a decline of 49% from the previous session's volume of 11,439,866 shares.The stock last traded at $64.74 and had previously closed at $64.93.

The credit services provider reported $1.33 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.16 by $0.17. PayPal had a net margin of 13.04% and a return on equity of 23.67%. During the same quarter last year, the business posted $1.08 EPS. PayPal's revenue for the quarter was up 1.2% on a year-over-year basis.

Analyst Upgrades and Downgrades

A number of research analysts have recently commented on the stock. Robert W. Baird dropped their target price on shares of PayPal from $100.00 to $95.00 and set an "outperform" rating for the company in a report on Wednesday, February 5th. Macquarie increased their price objective on shares of PayPal from $115.00 to $117.00 and gave the company an "outperform" rating in a research note on Monday, February 10th. Monness Crespi & Hardt decreased their target price on shares of PayPal from $120.00 to $90.00 and set a "buy" rating on the stock in a research note on Tuesday, April 8th. Compass Point began coverage on PayPal in a research note on Wednesday, April 23rd. They issued a "sell" rating and a $56.00 price target for the company. Finally, Citigroup restated an "outperform" rating on shares of PayPal in a research report on Wednesday, February 5th. Two analysts have rated the stock with a sell rating, sixteen have given a hold rating, twenty have assigned a buy rating and one has issued a strong buy rating to the company's stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $85.88.

Insiders Place Their Bets

In other PayPal news, Director Gail J. Mcgovern sold 2,446 shares of the firm's stock in a transaction dated Thursday, February 27th. The stock was sold at an average price of $72.15, for a total value of $176,478.90. Following the sale, the director now owns 29,734 shares of the company's stock, valued at $2,145,308.10. This trade represents a 7.60 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. 0.14% of the stock is owned by corporate insiders.

Institutional Trading of PayPal

Several institutional investors and hedge funds have recently made changes to their positions in the stock. Anchor Investment Management LLC increased its stake in PayPal by 9.9% in the 3rd quarter. Anchor Investment Management LLC now owns 35,219 shares of the credit services provider's stock worth $2,748,000 after purchasing an additional 3,175 shares during the period. Boyar Asset Management Inc. purchased a new stake in PayPal during the 3rd quarter valued at $208,000. World Investment Advisors LLC bought a new stake in PayPal in the 3rd quarter worth $5,296,000. Sfmg LLC purchased a new position in shares of PayPal in the third quarter valued at about $234,000. Finally, Wilmington Savings Fund Society FSB boosted its holdings in shares of PayPal by 196.3% during the third quarter. Wilmington Savings Fund Society FSB now owns 10,221 shares of the credit services provider's stock worth $798,000 after purchasing an additional 6,772 shares during the period. Hedge funds and other institutional investors own 68.32% of the company's stock.

PayPal Price Performance

The company has a debt-to-equity ratio of 0.48, a quick ratio of 1.26 and a current ratio of 1.26. The business has a 50-day simple moving average of $66.49 and a 200 day simple moving average of $78.47. The firm has a market cap of $63.59 billion, a P/E ratio of 16.18, a price-to-earnings-growth ratio of 1.27 and a beta of 1.60.

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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