PayPal (NASDAQ:PYPL) Shares Up 1.3% - Here's Why

Key Points

• Shares rose 1.3% to $51.46 during mid-day trading on Monday on lighter-than-normal volume (12.15M vs. avg 22.25M), with a market cap of $46.3B and a P/E of 9.51.
• Sentiment is mixed: renewed bullish interest (including reports Michael Burry bought PYPL and supportive turnaround pieces) contrasts with analyst caution — notable downgrades and price-target cuts — leaving an average rating of “Hold” and an average price target near $56.61.
• Near-term headwinds include a recent earnings and revenue miss, significant insider selling (87,608 shares sold in the last 90 days), and an active class-action litigation deadline, all of which pose downside risk to sentiment.

Shares of PayPal Holdings, Inc. (NASDAQ:PYPL - Get Free Report) shot up 1.3% during mid-day trading on Monday . The company traded as high as $51.51 and last traded at $51.46. 12,149,286 shares traded hands during mid-day trading, a decline of 45% from the average session volume of 22,252,127 shares. The stock had previously closed at $50.81.

Key Stories Impacting PayPal

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: Noted investor interest and bullish takes: reports that Michael Burry added PYPL to his buys and a bullish Seeking Alpha piece argue the turnaround thesis still has upside, supporting demand from value/contrarian buyers. Michael Burry (PYPL) Stock Buys
• Positive Sentiment: Bullish stock-picking narratives remain: analysis arguing “it’s not too late” for the turnaround may attract longer-term investors who view current valuation as a recovery opportunity. PayPal: It's Still Not Too Late To Buy The Turnaround
• Neutral Sentiment: Competitive comparison: recent coverage comparing Mastercard (MA) vs. PayPal highlights that network strength and higher-margin services may give MA stronger near-term growth, framing PayPal more as a turnaround story than a sector leader. That pressure is informational but not new. MA vs. PYPL: Which Digital Payments Stock Has More Room to Run?
• Negative Sentiment: Mizuho downgraded PYPL to Neutral and cut its price target to $50, citing increasing competitive threats (notably Musk’s X Money), fundamental headwinds, an earnings miss, and insider selling — a catalyst for short-term selling and lower analyst support. Mizuho Downgrades PayPal (PYPL) to Neutral
• Negative Sentiment: Legal overhang: multiple law firms (Rosen, Faruqi, Bronstein, Bragar, DJS and others) have issued reminders about April 20 lead-plaintiff deadlines in securities class-action suits alleging misstatements during a stated class period — these notices signal ongoing litigation risk and potential future liabilities that can weigh on sentiment and valuation. PYPL CLASS ACTION DEADLINE TONIGHT

Analyst Ratings Changes

A number of research firms recently issued reports on PYPL. Rothschild & Co Redburn decreased their price target on shares of PayPal from $50.00 to $32.00 and set a "sell" rating for the company in a research note on Wednesday, February 11th. BNP Paribas Exane increased their price target on shares of PayPal from $41.00 to $43.50 and gave the stock a "neutral" rating in a research note on Friday, April 10th. Needham & Company LLC reaffirmed a "hold" rating on shares of PayPal in a research note on Tuesday, February 3rd. Jefferies Financial Group reaffirmed a "hold" rating on shares of PayPal in a research note on Wednesday, January 7th. Finally, Truist Financial dropped their price objective on shares of PayPal from $58.00 to $39.00 and set a "sell" rating on the stock in a research note on Tuesday, February 10th. Seven investment analysts have rated the stock with a Buy rating, thirty-two have assigned a Hold rating and six have issued a Sell rating to the stock. According to MarketBeat, PayPal currently has an average rating of "Hold" and an average price target of $56.61.

PayPal Stock Performance

The firm has a market capitalization of $46.30 billion, a P/E ratio of 9.51, a price-to-earnings-growth ratio of 1.52 and a beta of 1.40. The company has a current ratio of 1.29, a quick ratio of 1.29 and a debt-to-equity ratio of 0.49. The business's 50 day simple moving average is $44.88 and its two-hundred day simple moving average is $55.76.

PayPal (NASDAQ:PYPL - Get Free Report) last released its quarterly earnings data on Tuesday, February 3rd. The credit services provider reported $1.23 earnings per share for the quarter, missing analysts' consensus estimates of $1.29 by ($0.06). The firm had revenue of $8.68 billion for the quarter, compared to the consensus estimate of $8.82 billion. PayPal had a net margin of 15.77% and a return on equity of 25.42%. The firm's revenue for the quarter was up 4.0% compared to the same quarter last year. During the same quarter in the prior year, the business posted $1.19 earnings per share. Sell-side analysts anticipate that PayPal Holdings, Inc. will post 5.32 EPS for the current fiscal year.

PayPal Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, March 25th. Stockholders of record on Wednesday, March 4th were paid a $0.14 dividend. This represents a $0.56 dividend on an annualized basis and a dividend yield of 1.1%. The ex-dividend date was Wednesday, March 4th. PayPal's dividend payout ratio (DPR) is 10.35%.

Insider Transactions at PayPal

In other news, EVP Frank Keller sold 29,581 shares of the stock in a transaction that occurred 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. This represents a 36.45% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider Suzan Kereere sold 37,613 shares of the business's stock in a transaction on Wednesday, February 18th. The shares were sold at an average price of $41.49, for a total transaction of $1,560,563.37. Following the sale, the insider directly owned 30,983 shares of the company's stock, valued at approximately $1,285,484.67. The trade was a 54.83% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 87,608 shares of company stock worth $3,831,535 in the last ninety days. Insiders own 0.63% of the company's stock.

Institutional Investors Weigh In On PayPal

A number of hedge funds have recently modified their holdings of PYPL. Brighton Jones LLC lifted its position in shares of PayPal by 15.2% during the 4th quarter. Brighton Jones LLC now owns 6,989 shares of the credit services provider's stock valued at $596,000 after buying an additional 924 shares in the last quarter. Revolve Wealth Partners LLC purchased a new position in shares of PayPal during the 4th quarter valued at about $248,000. Sivia Capital Partners LLC lifted its position in shares of PayPal by 41.5% during the 2nd quarter. Sivia Capital Partners LLC now owns 4,470 shares of the credit services provider's stock valued at $332,000 after buying an additional 1,310 shares in the last quarter. United Bank lifted its position in shares of PayPal by 40.1% during the 2nd quarter. United Bank now owns 17,388 shares of the credit services provider's stock valued at $1,292,000 after buying an additional 4,974 shares in the last quarter. Finally, Federated Hermes Inc. lifted its position in shares of PayPal by 17.9% during the 2nd quarter. Federated Hermes Inc. now owns 18,909 shares of the credit services provider's stock valued at $1,405,000 after buying an additional 2,865 shares in the last quarter. Institutional investors own 68.32% of the company's stock.

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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