PayPal (NASDAQ:PYPL) Shares Up 1.2% on Analyst Upgrade

Key Points

• PayPal shares rose 1.2% to about $58.54 after Cantor Fitzgerald raised its price target from $54 to $60, while maintaining a Neutral rating.
• Analyst sentiment remains cautious overall: PayPal has an average Hold rating and a consensus price target of $55.67, despite several recent target increases.
• PayPal recently beat quarterly earnings and revenue expectations, reporting $1.38 in adjusted EPS and $8.68 billion in revenue; insiders have also sold shares worth approximately $484,534 over the past quarter.

Shares of PayPal Holdings, Inc. (NASDAQ:PYPL - Get Free Report) shot up 1.2% during mid-day trading on Tuesday after Cantor Fitzgerald raised their price target on the stock from $54.00 to $60.00. Cantor Fitzgerald currently has a neutral rating on the stock. PayPal traded as high as $58.56 and last traded at $58.54. 9,728,197 shares changed hands during mid-day trading, a decline of 50% from the average session volume of 19,424,172 shares. The stock had previously closed at $57.87.

Several other research analysts also recently weighed in on PYPL. Barclays increased their price target on shares of PayPal from $55.00 to $57.00 and gave the stock an "equal weight" rating in a research report on Wednesday, July 29th. HSBC initiated coverage on PayPal in a research note on Friday, July 24th. They issued a "buy" rating on the stock. TD Cowen boosted their price objective on PayPal from $48.00 to $59.00 and gave the company a "hold" rating in a research note on Wednesday, July 29th. JPMorgan Chase & Co. raised their target price on shares of PayPal from $46.00 to $65.00 and gave the stock a "neutral" rating in a research note on Wednesday, July 29th. Finally, Clear Str raised shares of PayPal to a "hold" rating in a research note on Thursday, July 16th. Nine analysts have rated the stock with a Buy rating, thirty-four have issued a Hold rating and four have issued a Sell rating to the company. According to data from MarketBeat.com, the company presently has an average rating of "Hold" and a consensus target price of $55.67.

Insider Activity

In other news, CAO Chris Natali sold 1,337 shares of the business's stock in a transaction on Wednesday, July 29th. The shares were sold at an average price of $58.10, for a total value of $77,679.70. Following the transaction, the chief accounting officer owned 2,216 shares of the company's stock, valued at approximately $128,749.60. The trade was a 37.63% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Frank Keller sold 732 shares of the firm's stock in a transaction on Wednesday, July 29th. The shares were sold at an average price of $58.10, for a total transaction of $42,529.20. Following the transaction, the insider directly owned 41,567 shares of the company's stock, valued at $2,415,042.70. The trade was a 1.73% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 10,612 shares of company stock worth $484,534 over the last quarter. Insiders own 0.63% of the company's stock.

More PayPal News

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: PayPal shares gained more than 32% in July—one of their strongest monthly performances—after the company delivered a second-quarter earnings beat and raised its full-year outlook. Buyout speculation involving potential bidders including Stripe and Advent has added another catalyst. PYPL Stock Clocked Its Best Month Ever in July
• Positive Sentiment: One market view remains that PayPal is deeply undervalued, whether or not a transaction occurs. That thesis is supported by the stock’s relatively low valuation and the possibility that improving execution could unlock shareholder value independently of a deal. PayPal Still Deeply Undervalued
• Neutral Sentiment: Cantor Fitzgerald raised its price target from $54 to $60 but kept a Neutral rating, indicating that analysts see limited additional upside after the recent rebound. Benzinga analyst update
• Neutral Sentiment: Technical traders are weighing the earnings-driven turnaround against an overbought relative-strength reading, which could encourage consolidation following the July surge. PayPal Shares Pause as Turnaround Momentum Collides With Overbought RSI
• Negative Sentiment: PayPal’s chief accounting officer sold 38% of his directly held shares. Although the sale may be personal and does not necessarily signal deteriorating fundamentals, insider selling can weigh on sentiment after the stock’s recent rebound. PayPal Chief Accounting Officer Share Sale

Hedge Funds Weigh In On PayPal

Several institutional investors have recently added to or reduced their stakes in the company. Cary Street Partners Financial LLC raised its holdings in shares of PayPal by 20.1% during the 2nd quarter. Cary Street Partners Financial LLC now owns 4,809 shares of the credit services provider's stock worth $208,000 after acquiring an additional 805 shares in the last quarter. Hickory Point Bank & Trust raised its stake in PayPal by 137.9% during the second quarter. Hickory Point Bank & Trust now owns 690 shares of the credit services provider's stock valued at $30,000 after purchasing an additional 400 shares in the last quarter. Formidable Asset Management LLC grew its stake in shares of PayPal by 17.3% in the 2nd quarter. Formidable Asset Management LLC now owns 30,436 shares of the credit services provider's stock worth $1,377,000 after buying an additional 4,499 shares in the last quarter. Ballentine Partners LLC increased its holdings in shares of PayPal by 9.5% in the 2nd quarter. Ballentine Partners LLC now owns 8,686 shares of the credit services provider's stock worth $375,000 after buying an additional 753 shares during the last quarter. Finally, Camelot Portfolios LLC raised its position in shares of PayPal by 14.6% during the 2nd quarter. Camelot Portfolios LLC now owns 24,120 shares of the credit services provider's stock valued at $1,042,000 after buying an additional 3,080 shares in the last quarter. Hedge funds and other institutional investors own 68.32% of the company's stock.

PayPal Trading Up 1.2%

The stock has a market cap of $50.08 billion, a P/E ratio of 11.07, a P/E/G ratio of 1.42 and a beta of 1.29. The company has a debt-to-equity ratio of 0.55, a quick ratio of 1.29 and a current ratio of 1.29. The stock's fifty day moving average is $47.30 and its 200 day moving average is $47.03.

PayPal (NASDAQ:PYPL - Get Free Report) last issued its quarterly earnings data on Tuesday, July 28th. The credit services provider reported $1.38 earnings per share for the quarter, topping the consensus estimate of $1.28 by $0.10. The company 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 revenue for the quarter was up 4.8% on a year-over-year basis. During the same period in the previous year, the firm posted $1.40 earnings per share. As a group, equities research analysts predict that PayPal Holdings, Inc. will post 5.35 earnings per share for the current fiscal year.

PayPal Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, September 25th. Shareholders of record on Friday, September 4th will be given a dividend of $0.14 per share. The ex-dividend date is Friday, September 4th. This represents a $0.56 dividend on an annualized basis and a yield of 1.0%. PayPal's payout ratio is 10.59%.

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.

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