PayPal (NASDAQ:PYPL) Shares Down 1.9% Following Analyst Downgrade

Key Points

• PayPal shares fell about 1.9% after Evercore ISI cut its price target from $75 to $65 while maintaining an in‑line rating, with the stock trading near $61.12.
• Analyst coverage is mixed — 15 Buys, 19 Holds and 4 Sells — and MarketBeat shows an average price target of $81.39 with an overall consensus of "Hold".
• PayPal beat Q3 estimates (EPS $1.34 vs. $1.20; revenue $8.42B vs. $8.21B), provided Q4 and FY2025 EPS guidance (Q4: 1.270–1.310; FY: 5.350–5.390), and announced a quarterly dividend of $0.14 (annualized yield ~0.9%).

PayPal Holdings, Inc. (NASDAQ:PYPL - Get Free Report)'s stock price was down 1.9% during trading on Monday after Evercore ISI lowered their price target on the stock from $75.00 to $65.00. Evercore ISI currently has an in-line rating on the stock. PayPal traded as low as $60.99 and last traded at $61.12. Approximately 12,456,723 shares changed hands during mid-day trading, a decline of 0% from the average daily volume of 12,461,683 shares. The stock had previously closed at $62.28.

Other analysts also recently issued reports about the stock. Dbs Bank lowered their price target on shares of PayPal from $75.00 to $70.00 and set a "hold" rating on the stock in a report on Thursday, November 13th. Citigroup upgraded shares of PayPal to a "hold" rating in a report on Thursday, October 23rd. Wells Fargo & Company raised shares of PayPal to a "hold" rating in a research report on Wednesday, October 22nd. Compass Point reissued a "sell" rating and issued a $66.00 target price on shares of PayPal in a report on Wednesday, October 29th. Finally, Rothschild & Co Redburn increased their price objective on PayPal from $66.00 to $70.00 and gave the company a "neutral" rating in a report on Tuesday, September 16th. Fifteen analysts have rated the stock with a Buy rating, nineteen have given a Hold rating and four have issued a Sell rating to the stock. According to MarketBeat.com, PayPal has an average rating of "Hold" and an average price target of $81.39.

Insider Buying and Selling at PayPal

In other news, EVP Aaron Webster sold 9,282 shares of the stock in a transaction that occurred on Monday, November 10th. The stock was sold at an average price of $66.29, for a total transaction of $615,303.78. Following the transaction, the executive vice president owned 35,699 shares in the company, valued at approximately $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 accessible through this link. Also, CAO Chris Natali sold 1,374 shares of the business's stock in a transaction dated Thursday, October 30th. The shares were sold at an average price of $69.13, for a total transaction of $94,984.62. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 36,156 shares of company stock worth $2,432,524 over the last quarter. Company insiders own 0.08% of the company's stock.

Institutional Trading of PayPal

Several institutional investors and hedge funds have recently made changes to their positions in PYPL. Hilltop National Bank purchased a new position in shares of PayPal in the 2nd quarter worth approximately $27,000. MUFG Securities EMEA plc grew its stake in PayPal by 100.4% during 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. Cloud Capital Management LLC purchased a new position in shares of PayPal in the third quarter worth about $30,000. Kelleher Financial Advisors acquired a new stake in PayPal during the third quarter worth about $30,000. Finally, Gordian Capital Singapore Pte Ltd lifted its position in shares of PayPal by 41.2% during the 1st quarter. Gordian Capital Singapore Pte Ltd now owns 473 shares of the credit services provider's stock valued at $31,000 after buying an additional 138 shares in the last quarter. Hedge funds and other institutional investors own 68.32% of the company's stock.

PayPal Stock Down 1.9%

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 business has a fifty day simple moving average of $66.60 and a two-hundred day simple moving average of $69.47. The company has a market cap of $57.19 billion, a PE ratio of 12.25, a price-to-earnings-growth ratio of 0.84 and a beta of 1.43.

PayPal (NASDAQ:PYPL - Get Free Report) last issued its earnings results on Tuesday, October 28th. The credit services provider reported $1.34 earnings per share for the quarter, beating the consensus estimate of $1.20 by $0.14. The firm had revenue of $8.42 billion for the quarter, compared to analysts' expectations of $8.21 billion. PayPal had a net margin of 14.96% and a return on equity of 25.64%. The firm's revenue was up 7.3% compared to the same quarter last year. During the same quarter last year, the company earned $1.20 earnings per share. PayPal has set its Q4 2025 guidance at 1.270-1.310 EPS and its FY 2025 guidance at 5.350-5.390 EPS. As a group, equities research analysts predict that PayPal Holdings, Inc. will post 5.03 earnings per share for the current year.

PayPal Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, December 10th. Investors of record on Wednesday, November 19th will be given a $0.14 dividend. The ex-dividend date of this dividend is Wednesday, November 19th. This represents a $0.56 annualized dividend and a dividend yield of 0.9%. PayPal's dividend payout ratio (DPR) is currently 11.22%.

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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