PayPal (NASDAQ:PYPL) Shares Down 2.7% - Time to Sell?

Key Points

• Shares fell about 2.7% to $44.36 after an earnings report that missed estimates (Q4 EPS $1.23 vs. $1.29 consensus) and with technicals showing a downtrend (50-day $49.46, 200-day $60.10) and a market cap of ~$40.8B.
• PayPal faces significant legal and leadership risk: multiple securities class-action lawsuits tied to the Feb. 3 earnings miss and CEO exit, with law firms soliciting lead plaintiffs and warning of potential personal liability for senior officers.
• Outlook is mixed: the company joined Mastercard’s Crypto Partner Program (a potential long-term catalyst) and short interest has fallen, but analysts have cut targets/ratings, insiders have sold stock, and investor sentiment remains cautious.

PayPal Holdings, Inc. (NASDAQ:PYPL - Get Free Report) was down 2.7% during trading on Thursday . The company traded as low as $44.34 and last traded at $44.36. Approximately 15,235,546 shares traded hands during trading, a decline of 41% from the average daily volume of 25,613,119 shares. The stock had previously closed at $45.57.

Key PayPal News

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: PayPal joined Mastercard’s new Crypto Partner Program alongside Binance and Ripple, which can help expand PYUSD and payments integrations with merchants and banks — a potential long-term growth catalyst. Binance, Ripple, PayPal Join Mastercard's 85+ Partner Crypto Initiative
• Positive Sentiment: Short interest fell ~19% in late-February (to ~41.8M shares, ~4.5% of float), reducing one form of downward pressure and indicating fewer active large short bets on PYPL in the near term.
• Neutral Sentiment: Recent intraday moves showed the stock rising in a soft market session, reflecting short-term volatility and headline sensitivity rather than a clear change in fundamentals. Paypal (PYPL) Rises As Market Takes a Dip: Key Facts
• Negative Sentiment: Multiple securities class-action lawsuits have been filed alleging that PayPal made material misstatements/omissions about revenue outlook and growth tied to the Feb. 3 earnings miss and CEO exit — a direct driver of today’s selling pressure and legal risk. PayPal Holdings (PYPL) Faces Securities Class Action Amid $9 Billion Market Cap Wipeout, CEO Departure -- Hagens Berman
• Negative Sentiment: Numerous law firms (Kessler Topaz, Rosen, Pomerantz, Levi & Korsinsky, etc.) are soliciting lead-plaintiff applicants and reminding investors of an April 20, 2026 deadline — signaling significant, coordinated litigation activity that could increase settlement/defense costs and management distraction. ROSEN, GLOBAL INVESTOR RIGHTS COUNSEL, Encourages PayPal Holdings, Inc. Investors to Secure Counsel Before Important Deadline in Securities Class Action - PYPL
• Negative Sentiment: Counsel alerts emphasize potential individual liability for senior officers (CEO/CFO) and repeat allegations that prior disclosures were insufficient — increasing tail risk to shares and investor sentiment. SUEWALLST: PYPL CEO AND CFO FACE PERSONAL LIABILITY IN SECURITIES ACTION
• Negative Sentiment: Analyst and opinion pieces flag valuation and execution concerns (e.g., “value trap” commentary), reflecting skepticism that current fundamentals justify the stock’s prior levels absent clearer growth signs. PayPal: A Classic Value Trap

Wall Street Analysts Forecast Growth

PYPL has been the subject of a number of recent analyst reports. Zacks Research downgraded shares of PayPal from a "hold" rating to a "strong sell" rating in a report on Wednesday, February 11th. Stephens decreased their price target on shares of PayPal from $65.00 to $45.00 and set an "equal weight" rating on the stock in a report on Wednesday, February 4th. The Goldman Sachs Group lowered their price objective on shares of PayPal from $64.00 to $41.00 and set a "sell" rating for the company in a research note on Wednesday, February 4th. Robert W. Baird set a $52.00 price objective on PayPal in a report on Wednesday, February 4th. Finally, Royal Bank Of Canada cut their target price on PayPal from $91.00 to $59.00 and set an "outperform" rating on the stock in a research report on Wednesday, February 4th. Eight equities research analysts have rated the stock with a Buy rating, thirty-one have assigned a Hold rating and six have assigned a Sell rating to the stock. According to data from MarketBeat, the stock has an average rating of "Hold" and an average target price of $59.03.

PayPal Stock Down 2.7%

The stock has a market capitalization of $40.84 billion, a price-to-earnings ratio of 8.20, a price-to-earnings-growth ratio of 1.34 and a beta of 1.43. The firm has a 50-day moving average of $49.46 and a 200 day moving average of $60.10. The company has a current ratio of 1.29, a quick ratio of 1.29 and a debt-to-equity ratio of 0.49.

PayPal (NASDAQ:PYPL - Get Free Report) last issued its quarterly earnings data on Tuesday, February 3rd. The credit services provider reported $1.23 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.29 by ($0.06). The firm had revenue of $8.68 billion during the quarter, compared to analyst estimates of $8.82 billion. PayPal had a net margin of 15.77% and a return on equity of 25.42%. The firm's revenue was up 4.0% compared to the same quarter last year. During the same period last year, the business earned $1.19 EPS. On average, sell-side analysts anticipate that PayPal Holdings, Inc. will post 5.03 earnings per share for the current year.

PayPal Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Wednesday, March 25th. Investors of record on Wednesday, March 4th will be issued a dividend of $0.14 per share. This represents a $0.56 dividend on an annualized basis and a yield of 1.3%. The ex-dividend date of this dividend is Wednesday, March 4th. PayPal's dividend payout ratio (DPR) is presently 10.35%.

Insider Buying and Selling

In other PayPal news, EVP Frank Keller sold 29,581 shares of the business's stock in a transaction on Tuesday, March 3rd. The shares were sold at an average price of $46.02, for a total value of $1,361,317.62. Following the transaction, the executive vice president owned 51,567 shares in the company, valued at $2,373,113.34. The trade was a 36.45% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, insider Suzan Kereere sold 13,515 shares of the company's stock in a transaction dated Tuesday, March 3rd. The shares were sold at an average price of $46.02, for a total transaction of $621,960.30. Following the completion of the transaction, the insider directly owned 30,983 shares of the company's stock, valued at approximately $1,425,837.66. The trade was a 30.37% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 87,608 shares of company stock valued at $3,831,535 in the last quarter. Company insiders own 0.08% of the company's stock.

Institutional Investors Weigh In On PayPal

Hedge funds and other institutional investors have recently bought and sold shares of the business. Bard Associates Inc. bought a new stake in shares of PayPal in the fourth quarter worth $25,000. Caitong International Asset Management Co. Ltd grew its holdings in PayPal by 15,233.3% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 460 shares of the credit services provider's stock worth $27,000 after acquiring an additional 457 shares in the last quarter. Safe Harbor Fiduciary LLC acquired a new stake in shares of PayPal in the 4th quarter valued at about $28,000. Cloud Capital Management LLC acquired a new stake in shares of PayPal in the 3rd quarter valued at about $30,000. Finally, Kelleher Financial Advisors bought a new position in shares of PayPal during the third quarter worth about $30,000. 68.32% of the stock is currently owned by hedge funds and other institutional investors.

About PayPal

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.