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

Key Points

• PayPal's stock price significantly dropped, opening at $71.73 after closing at $78.22, indicating an 8.5% decline in market value.
• Analyst reports vary, with Bank of America reducing its price target to $93.00, while Canaccord Genuity maintains a $96.00 target and a "buy" rating.
• Insider trading activity includes significant share sales by executives, indicating a 7.91% decrease in Suzan Kereere's position after selling 4,162 shares.

PayPal Holdings, Inc. (NASDAQ:PYPL - Get Free Report)'s stock price gapped down prior to trading on Tuesday . The stock had previously closed at $78.22, but opened at $71.73. PayPal shares last traded at $72.25, with a volume of 10,493,488 shares trading hands.

Analyst Upgrades and Downgrades

PYPL has been the topic of several research analyst reports. Bank of America lowered their price target on PayPal from $103.00 to $93.00 and set a "buy" rating on the stock in a research report on Monday, April 14th. Canaccord Genuity Group reaffirmed a "buy" rating and issued a $96.00 price target on shares of PayPal in a research report on Wednesday, April 30th. Robert W. Baird raised their price target on PayPal from $78.00 to $79.00 and gave the company an "outperform" rating in a research report on Wednesday, April 30th. Seaport Res Ptn raised PayPal from a "strong sell" rating to a "hold" rating in a research report on Monday, July 14th. Finally, Wells Fargo & Company decreased their target price on PayPal from $80.00 to $74.00 and set an "equal weight" rating on the stock in a research report on Wednesday, April 16th. Two research analysts have rated the stock with a sell rating, seventeen have assigned a hold rating, eighteen have given a buy rating and one has issued a strong buy rating to the stock. According to MarketBeat.com, the stock currently has an average rating of "Hold" and an average price target of $83.13.

PayPal Stock Down 8.5%

The business's fifty day simple moving average is $73.31 and its 200 day simple moving average is $72.69. The company has a current ratio of 1.30, a quick ratio of 1.30 and a debt-to-equity ratio of 0.56. The stock has a market cap of $69.62 billion, a price-to-earnings ratio of 16.04, a price-to-earnings-growth ratio of 1.28 and a beta of 1.45.

PayPal (NASDAQ:PYPL - Get Free Report) last released its earnings results on Tuesday, July 29th. The credit services provider reported $1.40 EPS for the quarter, topping analysts' consensus estimates of $1.30 by $0.10. PayPal had a net margin of 14.26% and a return on equity of 24.59%. During the same quarter last year, the firm posted $1.19 earnings per share. Equities analysts forecast that PayPal Holdings, Inc. will post 5.03 earnings per share for the current fiscal year.

Insider Activity

In other news, insider Suzan Kereere sold 4,162 shares of the business's stock in a transaction on Friday, June 6th. The shares were sold at an average price of $73.24, for a total value of $304,824.88. Following the completion of the transaction, the insider owned 48,483 shares of the company's stock, valued at $3,550,894.92. The trade was a 7.91% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, EVP Diego Scotti sold 3,839 shares of the business's stock in a transaction on Friday, June 6th. The shares were sold at an average price of $73.24, for a total transaction of $281,168.36. Following the completion of the transaction, the executive vice president directly owned 16,989 shares of the company's stock, valued at $1,244,274.36. This trade represents a 18.43% decrease in their position. The disclosure for this sale can be found here. Insiders sold 11,796 shares of company stock valued at $863,028 in the last quarter. Company insiders own 0.08% of the company's stock.

Hedge Funds Weigh In On PayPal

Several institutional investors and hedge funds have recently made changes to their positions in the company. Mpwm Advisory Solutions LLC acquired a new position in PayPal in the 4th quarter worth $25,000. Hurley Capital LLC bought a new stake in shares of PayPal in the 4th quarter valued at about $27,000. Evermay Wealth Management LLC raised its holdings in shares of PayPal by 726.0% in the 1st quarter. Evermay Wealth Management LLC now owns 413 shares of the credit services provider's stock valued at $27,000 after purchasing an additional 363 shares during the period. Hilltop National Bank bought a new stake in shares of PayPal in the 2nd quarter valued at about $27,000. Finally, Garde Capital Inc. bought a new stake in shares of PayPal in the 1st quarter valued at about $28,000. Institutional investors and hedge funds 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.

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