PayPal (NASDAQ:PYPL) Shares Down 1.8% - Time to Sell?

Key Points

• PayPal's stock price declined by 1.8%, closing at $68.91, with a significantly lower trading volume of approximately 2.95 million shares, down 73% from its average daily volume.
• Equities analysts have mixed outlooks for PayPal, with a consensus "Hold" rating and target prices ranging from $68.00 to $100.00, indicating uncertainty regarding the stock's future performance.
• PayPal exceeded earnings expectations with $1.40 EPS for the last quarter and anticipates guidance of between $1.180 and $1.220 EPS for Q3 2025.

PayPal Holdings, Inc. (NASDAQ:PYPL - Get Free Report) was down 1.8% during trading on Tuesday . The stock traded as low as $68.15 and last traded at $68.91. Approximately 2,954,205 shares changed hands during trading, a decline of 73% from the average daily volume of 10,981,666 shares. The stock had previously closed at $70.19.

Wall Street Analysts Forecast Growth

A number of equities analysts have commented on the stock. Piper Sandler set a $74.00 target price on shares of PayPal in a report on Tuesday, July 29th. JMP Securities lowered their target price on PayPal from $110.00 to $100.00 and set a "market outperform" rating for the company in a report on Wednesday, July 30th. Truist Financial started coverage on PayPal in a research note on Monday, June 2nd. They set a "sell" rating and a $68.00 target price for the company. Canaccord Genuity Group reissued a "buy" rating and issued a $96.00 target price on shares of PayPal in a report on Wednesday, July 30th. Finally, Seaport Res Ptn upgraded PayPal from a "strong sell" rating to a "hold" rating in a research report on Monday, July 14th. Seventeen equities research analysts have rated the stock with a Buy rating, fourteen have assigned a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, PayPal currently has a consensus rating of "Hold" and a consensus target price of $85.00.

PayPal Stock Performance

The firm has a 50 day moving average of $72.02 and a two-hundred day moving average of $69.90. The company has a debt-to-equity ratio of 0.56, a quick ratio of 1.33 and a current ratio of 1.33. The stock has a market cap of $65.77 billion, a P/E ratio of 14.71, a P/E/G ratio of 1.08 and a beta of 1.43.

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

Insider Transactions at PayPal

In other PayPal news, Director Deborah M. Messemer sold 3,795 shares of the company's 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 sale, the director owned 13,976 shares of the company's stock, valued at approximately $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 SEC, which can be accessed through this hyperlink. Also, insider Suzan Kereere sold 4,162 shares of the stock in a transaction dated Tuesday, August 19th. The stock was sold at an average price of $69.39, for a total transaction of $288,801.18. Following the transaction, the insider directly owned 48,483 shares in the company, valued at $3,364,235.37. This trade represents a 7.91% decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 26,898 shares of company stock worth $1,909,636. Insiders own 0.08% of the company's stock.

Hedge Funds Weigh In On PayPal

A number of hedge funds have recently modified their holdings of PYPL. Mpwm Advisory Solutions LLC bought a new stake in PayPal during the fourth quarter worth about $25,000. Hilltop National Bank purchased a new position in PayPal in the 2nd quarter worth about $27,000. MUFG Securities EMEA plc grew its position in shares of PayPal by 100.4% in the 2nd quarter. MUFG Securities EMEA plc now owns 385 shares of the credit services provider's stock worth $29,000 after buying an additional 87,524 shares during the last quarter. Bernard Wealth Management Corp. acquired a new stake in PayPal in the 4th quarter worth approximately $34,000. Finally, Pinney & Scofield Inc. acquired a new stake in PayPal during the 4th quarter valued at approximately $35,000. Hedge funds and other institutional investors own 68.32% of the company's stock.

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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