PayPal (NASDAQ:PYPL) Shares Down 2.8% - Here's Why

Key Points

• PayPal shares declined by 2.8% to $68.62, with a notable drop in trading volume, down 67% from its average daily volume.
• Analysts have mixed ratings on PYPL, with two sell ratings, fourteen holds, and eighteen buy ratings, giving an average consensus rating of "Hold" and a price target of $85.00.
• Recent quarterly earnings exceeded expectations, with PayPal reporting $1.40 per share on revenues of $8.29 billion, compared to estimates of $1.30 and $8.08 billion, respectively.

PayPal Holdings, Inc. (NASDAQ:PYPL - Get Free Report)'s share price was down 2.8% on Thursday . The stock traded as low as $68.64 and last traded at $68.62. Approximately 3,730,089 shares traded hands during mid-day trading, a decline of 67% from the average daily volume of 11,199,260 shares. The stock had previously closed at $70.63.

Wall Street Analyst Weigh In

Several research firms have recently commented on PYPL. Seaport Res Ptn upgraded PayPal from a "strong sell" rating to a "hold" rating in a research report on Monday, July 14th. Citigroup reissued a "buy" rating on shares of PayPal in a research note on Tuesday, July 29th. Barclays reissued an "overweight" rating on shares of PayPal in a research note on Tuesday, July 29th. Piper Sandler set a $74.00 price objective on PayPal in a research report on Tuesday, July 29th. Finally, Wells Fargo & Company cut their price objective on PayPal from $80.00 to $74.00 and set an "equal weight" rating for the company in a research report on Wednesday, April 16th. Two investment analysts have rated the stock with a sell rating, fourteen have issued a hold rating and eighteen have assigned a buy rating to the company's stock. Based on data from MarketBeat.com, the company currently has an average rating of "Hold" and a consensus price target of $85.00.

PayPal Stock Down 2.8%

The company has a current ratio of 1.33, a quick ratio of 1.33 and a debt-to-equity ratio of 0.56. The stock's 50-day moving average is $72.70 and its 200-day moving average is $71.21. The company has a market cap of $65.60 billion, a price-to-earnings ratio of 14.67, a P/E/G ratio of 1.05 and a beta of 1.42.

PayPal (NASDAQ:PYPL - Get Free Report) last released its quarterly earnings data on Tuesday, July 29th. The credit services provider reported $1.40 earnings per share for the quarter, topping the consensus estimate of $1.30 by $0.10. PayPal had a net margin of 14.49% and a return on equity of 25.35%. The firm had revenue of $8.29 billion for the quarter, compared to the consensus estimate of $8.08 billion. During the same quarter in the prior year, the company posted $1.19 earnings per share. On average, analysts anticipate that PayPal Holdings, Inc. will post 5.03 earnings per share for the current fiscal year.

Insider Activity at PayPal

In other PayPal news, Director Deborah M. Messemer sold 3,795 shares of the stock in a transaction dated Friday, June 6th. The shares were sold at an average price of $73.00, for a total transaction of $277,035.00. Following the completion of the transaction, the director owned 13,976 shares in the company, valued at $1,020,248. This trade represents a 21.36% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, EVP Diego Scotti sold 3,839 shares of the stock in a transaction dated Friday, June 6th. The stock was sold at an average price of $73.24, for a total transaction of $281,168.36. Following the transaction, the executive vice president owned 16,989 shares of the company's stock, valued at $1,244,274.36. This represents a 18.43% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 22,736 shares of company stock worth $1,620,835 in the last ninety days. Corporate insiders own 0.08% of the company's stock.

Institutional Investors Weigh In On PayPal

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Security National Bank of SO Dak raised its holdings in PayPal by 1.1% in the 4th quarter. Security National Bank of SO Dak now owns 12,191 shares of the credit services provider's stock worth $1,041,000 after purchasing an additional 137 shares in the last quarter. Gordian Capital Singapore Pte Ltd boosted its holdings in shares of PayPal by 41.2% in the first quarter. Gordian Capital Singapore Pte Ltd now owns 473 shares of the credit services provider's stock worth $31,000 after buying an additional 138 shares during the last quarter. GSB Wealth Management LLC raised its position in shares of PayPal by 1.7% during the second quarter. GSB Wealth Management LLC now owns 8,160 shares of the credit services provider's stock valued at $606,000 after buying an additional 140 shares during the last quarter. CreativeOne Wealth LLC increased its position in PayPal by 1.5% in the first quarter. CreativeOne Wealth LLC now owns 9,387 shares of the credit services provider's stock worth $613,000 after purchasing an additional 142 shares during the last quarter. Finally, Cohen & Steers Inc. increased its position in PayPal by 5.1% in the fourth quarter. Cohen & Steers Inc. now owns 3,016 shares of the credit services provider's stock worth $257,000 after purchasing an additional 145 shares during the last quarter. 68.32% of the stock is owned by hedge funds and other institutional investors.

PayPal Company Profile

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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