PayPal (NASDAQ:PYPL) Shares Down 1.9% - Time to Sell?

Key Points

• PayPal shares fell 1.9% to $60.47 in midday trading, with volume roughly 52% below the average. Despite recent analyst upgrades from Jefferies and Daiwa, the overall analyst consensus remains “Hold,” with a $56.19 price target.
• PayPal exceeded quarterly expectations, reporting adjusted EPS of $1.38 versus $1.28 expected and revenue of $8.68 billion versus $8.47 billion expected. Revenue increased 4.8% year over year, while analysts project full-year EPS of $5.37.
• The company declared a quarterly dividend of $0.14 per share, equivalent to a 0.9% annualized yield. Insiders sold 10,612 shares worth approximately $484,534 over the past 90 days, while institutional investors own 68.32% of the stock.

PayPal Holdings, Inc. (NASDAQ:PYPL - Get Free Report)'s stock price was down 1.9% during mid-day trading on Monday . The company traded as low as $60.15 and last traded at $60.47. Approximately 9,068,368 shares changed hands during trading, a decline of 52% from the average daily volume of 18,847,711 shares. The stock had previously closed at $61.66.

Analyst Upgrades and Downgrades

Several equities research analysts have recently commented on PYPL shares. Jefferies Financial Group raised PayPal from a "hold" rating to a "buy" rating in a report on Tuesday, July 28th. Daiwa Securities Group raised PayPal from a "hold" rating to an "outperform" rating in a research report on Wednesday, May 6th. Deutsche Bank Aktiengesellschaft reaffirmed a "hold" rating and set a $45.00 target price on shares of PayPal in a research report on Wednesday, July 29th. Argus set a $70.00 target price on shares of PayPal in a research report on Wednesday, July 29th. Finally, Barclays raised their price objective on shares of PayPal from $55.00 to $57.00 and gave the stock an "equal weight" rating in a report on Wednesday, July 29th. Nine equities research analysts have rated the stock with a Buy rating, thirty-four have given a Hold rating and four have given a Sell rating to the company. According to data from MarketBeat.com, PayPal presently has an average rating of "Hold" and a consensus price target of $56.19.

PayPal Trading Down 1.9%

The firm has a market cap of $51.73 billion, a price-to-earnings ratio of 11.43, a price-to-earnings-growth ratio of 1.51 and a beta of 1.29. The company has a quick ratio of 1.29, a current ratio of 1.29 and a debt-to-equity ratio of 0.55. The business's fifty day moving average is $50.13 and its two-hundred day moving average is $47.21.

PayPal (NASDAQ:PYPL - Get Free Report) last posted its quarterly earnings results on Tuesday, July 28th. The credit services provider reported $1.38 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.28 by $0.10. The business had revenue of $8.68 billion for the quarter, compared to analysts' expectations of $8.47 billion. PayPal had a return on equity of 24.39% and a net margin of 14.36%.The firm's quarterly revenue was up 4.8% compared to the same quarter last year. During the same quarter last year, the business earned $1.40 earnings per share. Equities analysts anticipate that PayPal Holdings, Inc. will post 5.37 earnings per share for the current fiscal year.

PayPal Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, September 25th. Investors of record on Friday, September 4th will be paid a dividend of $0.14 per share. The ex-dividend date of this dividend is Friday, September 4th. This represents a $0.56 dividend on an annualized basis and a dividend yield of 0.9%. PayPal's payout ratio is 10.59%.

Insider Activity at PayPal

In related news, insider Suzan Kereere sold 3,379 shares of the stock in a transaction that occurred on Wednesday, June 3rd. The shares were sold at an average price of $42.79, for a total value of $144,587.41. Following the sale, the insider directly owned 30,983 shares in the company, valued at $1,325,762.57. This trade represents a 9.83% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Chris Natali sold 1,337 shares of PayPal stock in a transaction on Wednesday, July 29th. The stock was sold at an average price of $58.10, for a total transaction of $77,679.70. Following the transaction, the chief accounting officer directly owned 2,216 shares in the company, valued at approximately $128,749.60. This represents a 37.63% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 10,612 shares of company stock worth $484,534 in the last ninety days. Company insiders own 0.63% of the company's stock.

Hedge Funds Weigh In On PayPal

A number of large investors have recently added to or reduced their stakes in PYPL. Bard Associates Inc. bought a new position in shares of PayPal during the 4th quarter worth approximately $25,000. Allied Private Wealth LLC bought a new stake in shares of PayPal in the 2nd quarter valued at about $25,000. Robinswood Financial LLC bought a new stake in PayPal in the first quarter valued at approximately $26,000. Caitong International Asset Management Co. Ltd boosted its position in PayPal by 15,233.3% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 460 shares of the credit services provider's stock worth $27,000 after purchasing an additional 457 shares during the period. Finally, Mowery & Schoenfeld Wealth Management LLC bought a new stake in shares of PayPal during the 2nd quarter worth about $27,000. Institutional investors own 68.32% of the company's stock.

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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