PayPal (NASDAQ:PYPL) Shares Down 1.7% - Here's Why

Key Points

• PayPal shares fell 1.7% to $67.89 amid trading, significantly below its average daily volume, which decreased by 80% from prior trading activity.
• Analysts are mixed on PayPal, with seventeen giving a Buy rating and a consensus price target of $85.00, while some analysts set a lower price target of $56.00.
• PayPal's recent quarterly earnings report revealed $1.40 EPS, exceeding estimates, with the company projecting guidance of 5.150-5.300 EPS for FY 2025.

PayPal Holdings, Inc. (NASDAQ:PYPL - Get Free Report) shares dropped 1.7% during mid-day trading on Wednesday . The stock traded as low as $68.02 and last traded at $67.89. Approximately 2,280,944 shares traded hands during trading, a decline of 80% from the average daily volume of 11,135,973 shares. The stock had previously closed at $69.05.

Wall Street Analyst Weigh In

Several research analysts recently issued reports on the stock. Citigroup reissued a "buy" rating on shares of PayPal in a research report on Tuesday, July 29th. Piper Sandler set a $74.00 price target on shares of PayPal in a research report on Tuesday, July 29th. Compass Point started coverage on shares of PayPal in a research report on Wednesday, April 23rd. They issued a "sell" rating and a $56.00 price target for the company. Canaccord Genuity Group reaffirmed a "buy" rating and set a $96.00 price objective on shares of PayPal in a report on Wednesday, July 30th. Finally, Morgan Stanley reaffirmed a "positive" rating on shares of PayPal in a report on Wednesday, July 30th. Seventeen investment analysts have rated the stock with a Buy rating, fourteen have issued a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, the stock presently has an average rating of "Hold" and a consensus price target of $85.00.

PayPal Trading Down 1.7%

The business's 50 day simple moving average is $72.36 and its 200-day simple moving average is $70.54. The company has a debt-to-equity ratio of 0.56, a current ratio of 1.33 and a quick ratio of 1.33. The stock has a market capitalization of $64.85 billion, a P/E ratio of 14.50, a PEG ratio of 1.07 and a beta of 1.42.

PayPal (NASDAQ:PYPL - Get Free Report) last issued its quarterly earnings data on Tuesday, July 29th. The credit services provider reported $1.40 EPS for the quarter, topping analysts' consensus estimates of $1.30 by $0.10. PayPal had a net margin of 14.49% and a return on equity of 25.35%. The business had revenue of $8.29 billion for the quarter, compared to analyst estimates of $8.08 billion. During the same period last year, the business posted $1.19 earnings per share. PayPal has set its Q3 2025 guidance at 1.180-1.220 EPS. FY 2025 guidance at 5.150-5.300 EPS. As a group, analysts forecast that PayPal Holdings, Inc. will post 5.03 EPS for the current year.

Insider Activity

In related news, Director Deborah M. Messemer sold 3,795 shares of the stock in a transaction on Friday, June 6th. The shares were sold at an average price of $73.00, for a total transaction of $277,035.00. Following the transaction, the director directly owned 13,976 shares of the company's stock, valued at $1,020,248. This represents a 21.36% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP Diego Scotti sold 3,839 shares of the firm's stock in a transaction on Friday, June 6th. The shares were sold at an average price of $73.24, for a total transaction of $281,168.36. Following the completion of the transaction, the executive vice president directly owned 16,989 shares in the company, valued at $1,244,274.36. This trade 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 22,736 shares of company stock valued at $1,620,835 over the last quarter. 0.08% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On PayPal

Hedge funds have recently made changes to their positions in the business. Allianz SE grew its position in shares of PayPal by 281.8% in the 1st quarter. Allianz SE now owns 30,338 shares of the credit services provider's stock worth $1,980,000 after buying an additional 22,392 shares during the period. J. Goldman & Co LP grew its position in shares of PayPal by 11.9% in the 4th quarter. J. Goldman & Co LP now owns 261,322 shares of the credit services provider's stock worth $22,304,000 after buying an additional 27,812 shares during the period. Nuveen LLC purchased a new stake in PayPal during the 1st quarter valued at about $529,264,000. Proffitt & Goodson Inc. purchased a new stake in PayPal during the 1st quarter valued at about $535,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its position in PayPal by 17.1% during the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 7,634,664 shares of the credit services provider's stock valued at $651,619,000 after purchasing an additional 1,114,858 shares during the last quarter. 68.32% of the stock is currently 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.