PayPal (NASDAQ:PYPL) Shares Down 1.8% Following Analyst Downgrade

Key Points

• PayPal shares dropped 1.8% after Rothschild Redb downgraded the stock from a hold to a strong sell, trading as low as $52.53 on volume of about 19.4 million shares (≈26% above average).
• The analyst picture is mixed: MarketBeat shows a consensus rating of Hold with a $73.10 price target, while brokers range across 12 Buys, 24 Holds and 6 Sells and several recent price-target cuts have weighed on the stock.
• Corporate insiders sold 25,944 shares (about $1.73M) over the last 90 days, leaving insiders with roughly 0.08% ownership of the company.

PayPal Holdings, Inc. (NASDAQ:PYPL - Get Free Report)'s stock price dropped 1.8% during trading on Thursday after Rothschild Redb downgraded the stock from a hold rating to a strong sell rating. The stock traded as low as $52.53 and last traded at $53.11. Approximately 19,392,082 shares changed hands during mid-day trading, an increase of 26% from the average daily volume of 15,445,856 shares. The stock had previously closed at $54.08.

Several other brokerages have also weighed in on PYPL. Piper Sandler cut their target price on PayPal from $76.00 to $74.00 and set a "neutral" rating on the stock in a research report on Wednesday, January 14th. Raymond James Financial reiterated a "hold" rating on shares of PayPal in a research note on Thursday, January 15th. Mizuho reduced their price objective on shares of PayPal from $84.00 to $75.00 and set an "outperform" rating for the company in a research report on Monday, December 22nd. Canaccord Genuity Group increased their target price on shares of PayPal from $96.00 to $100.00 and gave the company a "buy" rating in a research report on Wednesday, October 29th. Finally, President Capital cut their price target on shares of PayPal from $91.00 to $80.00 and set a "buy" rating on the stock in a research note on Tuesday, November 25th. Twelve research analysts have rated the stock with a Buy rating, twenty-four have assigned a Hold rating and six have issued a Sell rating to the company. Based on data from MarketBeat.com, PayPal currently has a consensus rating of "Hold" and a consensus price target of $73.10.

Insiders Place Their Bets

In related news, EVP Aaron Webster sold 9,282 shares of the firm's stock in a transaction dated Monday, November 10th. The shares were sold at an average price of $66.29, for a total value of $615,303.78. Following the completion of the sale, the executive vice president owned 35,699 shares in the company, valued at $2,366,486.71. This trade represents a 20.64% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider Suzan Kereere sold 12,500 shares of the business's stock in a transaction on Monday, November 3rd. The stock was sold at an average price of $68.87, for a total value of $860,875.00. Following the completion of the transaction, the insider directly owned 30,983 shares of the company's stock, valued at approximately $2,133,799.21. This trade represents a 28.75% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 25,944 shares of company stock worth $1,725,233. Corporate insiders own 0.08% of the company's stock.

Trending Headlines about PayPal

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: Survey data show rising merchant adoption of crypto at checkout, supporting PayPal’s crypto/payments strategy and potential revenue expansion if the company monetizes this trend. Nearly 40% of US merchants now accept crypto at checkout: PayPal
• Positive Sentiment: Longer-term bullish thesis: an analyst piece argues new partnerships could materially accelerate PayPal’s growth in 2026, a catalyst investors may price in once near-term execution risks clear. Prediction: 2026 Will Be the Year of PayPal
• Neutral Sentiment: Analysts and previews are focused on Q4 metrics beyond headline revenue/EPS (take rates, TPV, active accounts, and volume comps) — these details will drive near-term guidance sensitivity. Paypal (PYPL) Q4 Earnings Preview: What You Should Know Beyond the Headline Estimates
• Neutral Sentiment: Cantor Fitzgerald initiated coverage with a neutral/hold, adding analytic attention but not a clear positive catalyst. Investors will look to guidance and execution to set conviction. Cantor Fitzgerald initiates coverage of PayPal Holdings (PYPL) with neutral recommendation
• Negative Sentiment: Several broker downgrades and sell ratings hit the stock (Rothschild Redb / Rothschild & Co Redburn among them), pressuring the shares ahead of earnings. “Heads Up, Investors,” PayPal Stock (PYPL) Hit with Sell Rating and Price Target Cut ahead of Q4 Earnings
• Negative Sentiment: Truist lowered its price target and flagged difficult volume comparisons for Q4, increasing downside risk if TPV/active-account trends disappoint. Truist Anticipates Solid PayPal (PYPL) Q4 Results but Warns of Difficult Volume Comparisons
• Negative Sentiment: HSBC cut its price target, reflecting more muted expectations and adding to analyst-driven selling pressure. HSBC Lowers PayPal NASDAQ: PYPL Price Target to $72.00
• Negative Sentiment: Commentary notes a tough competitive landscape and macro backdrop; some investors are advised to “press pause” until Q4 results and forward guidance reduce uncertainty. PayPal Reports Q4 Earnings on Feb. 3. Why You Should Press Pause on PYPL Stock For Now.

Institutional Investors Weigh In On PayPal

Several large investors have recently made changes to their positions in the business. Hilltop National Bank acquired a new stake in PayPal in the 2nd quarter valued at $27,000. MUFG Securities EMEA plc grew its stake in shares of PayPal by 100.4% in the second quarter. MUFG Securities EMEA plc now owns 385 shares of the credit services provider's stock valued at $29,000 after buying an additional 87,524 shares in the last quarter. Cloud Capital Management LLC purchased a new stake in shares of PayPal during the 3rd quarter valued at about $30,000. Kelleher Financial Advisors purchased a new position in shares of PayPal in the third quarter valued at $30,000. Finally, True Wealth Design LLC grew its stake in shares of PayPal by 285.3% during the third quarter. True Wealth Design LLC now owns 524 shares of the credit services provider's stock valued at $35,000 after acquiring an additional 388 shares in the last quarter. Institutional investors and hedge funds own 68.32% of the company's stock.

PayPal Stock Performance

The company has a current ratio of 1.34, a quick ratio of 1.34 and a debt-to-equity ratio of 0.56. The company has a market capitalization of $49.69 billion, a price-to-earnings ratio of 10.64, a price-to-earnings-growth ratio of 0.69 and a beta of 1.42. The stock has a 50-day simple moving average of $59.29 and a 200-day simple moving average of $65.74.

PayPal (NASDAQ:PYPL - Get Free Report) last released its earnings results on Tuesday, October 28th. The credit services provider reported $1.34 earnings per share for the quarter, topping the consensus estimate of $1.20 by $0.14. The company had revenue of $8.42 billion during the quarter, compared to the consensus estimate of $8.21 billion. PayPal had a net margin of 14.96% and a return on equity of 25.64%. The company's revenue was up 7.3% on a year-over-year basis. During the same quarter in the previous year, the firm earned $1.20 EPS. On average, analysts anticipate that PayPal Holdings, Inc. will post 5.03 earnings per share for the current year.

PayPal Company Profile

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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