PayPal (NASDAQ:PYPL) Shares Down 4.8% - Here's Why

PayPal Holdings, Inc. (NASDAQ:PYPL - Get Free Report)'s share price was down 4.8% during mid-day trading on Friday . The company traded as low as $70.68 and last traded at $71.20. Approximately 4,830,152 shares were traded during trading, a decline of 56% from the average daily volume of 10,990,653 shares. The stock had previously closed at $74.81.

Analysts Set New Price Targets

A number of research analysts have issued reports on PYPL shares. Canaccord Genuity Group restated a "buy" rating and set a $96.00 price target on shares of PayPal in a research note on Wednesday, April 30th. Compass Point started coverage on shares of PayPal in a report on Wednesday, April 23rd. They issued a "sell" rating and a $56.00 price objective on the stock. Arete Research set a $81.00 price objective on shares of PayPal in a report on Thursday, March 27th. Monness Crespi & Hardt dropped their price objective on shares of PayPal from $120.00 to $90.00 and set a "buy" rating on the stock in a report on Tuesday, April 8th. Finally, Truist Financial started coverage on shares of PayPal in a report on Monday, June 2nd. They issued a "sell" rating and a $68.00 price objective on the stock. Three analysts have rated the stock with a sell rating, fifteen have given a hold rating, nineteen have assigned a buy rating and one has assigned a strong buy rating to the company. According to data from MarketBeat.com, the stock has an average rating of "Hold" and an average target price of $83.29.

PayPal Price Performance

The company has a quick ratio of 1.26, a current ratio of 1.26 and a debt-to-equity ratio of 0.48. The stock's 50-day simple moving average is $68.14 and its two-hundred day simple moving average is $75.82. The company has a market capitalization of $68.88 billion, a price-to-earnings ratio of 17.66, a PEG ratio of 1.27 and a beta of 1.45.

PayPal (NASDAQ:PYPL - Get Free Report) last issued its earnings results on Tuesday, April 29th. The credit services provider reported $1.33 EPS for the quarter, beating analysts' consensus estimates of $1.16 by $0.17. The business had revenue of $7.79 billion during the quarter, compared to analysts' expectations of $7.84 billion. PayPal had a net margin of 13.04% and a return on equity of 23.67%. The company's quarterly revenue was up 1.2% compared to the same quarter last year. During the same period in the prior year, the business earned $1.08 earnings per share. Equities research analysts predict that PayPal Holdings, Inc. will post 5.03 earnings per share for the current year.

Insider Activity

In related news, Director Deborah M. Messemer sold 3,795 shares of the firm's 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 sale, the director now directly owns 13,976 shares in the company, valued at approximately $1,020,248. This trade represents a 21.36% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, EVP Diego Scotti sold 3,839 shares of the firm's 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 sale, the executive vice president now owns 16,989 shares of the company's stock, valued at approximately $1,244,274.36. The trade was a 18.43% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 11,796 shares of company stock worth $863,028 over the last three months. Insiders own 0.08% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of the stock. JFS Wealth Advisors LLC boosted its stake in PayPal by 33.2% during the fourth quarter. JFS Wealth Advisors LLC now owns 502 shares of the credit services provider's stock worth $43,000 after buying an additional 125 shares during the period. Avalon Trust Co boosted its stake in PayPal by 7.0% during the fourth quarter. Avalon Trust Co now owns 2,067 shares of the credit services provider's stock worth $176,000 after buying an additional 135 shares during the period. Security National Bank of SO Dak boosted its stake in PayPal by 1.1% during the fourth quarter. Security National Bank of SO Dak now owns 12,191 shares of the credit services provider's stock worth $1,041,000 after buying an additional 137 shares during the period. Gordian Capital Singapore Pte Ltd boosted its stake in PayPal by 41.2% during 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 period. Finally, Stegent Equity Advisors Inc. boosted its stake in PayPal by 3.2% during the fourth quarter. Stegent Equity Advisors Inc. now owns 4,546 shares of the credit services provider's stock worth $388,000 after buying an additional 142 shares during the period. 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.