PayPal (NASDAQ:PYPL) Shares Up 2% - Time to Buy?

Key Points

• PayPal shares jumped about 2% intraday to roughly $51 after catalysts including Michael Burry disclosing a ~3.5% stake, growing traction for PayPal’s PYUSD stablecoin, product/monetization moves like Venmo’s Stash, and speculation about activist/takeover interest that spurred speculative buying.
• Significant risks remain: several analysts have cut targets or downgraded the stock, competition from X Money is seen as a direct threat to Venmo/wallet dynamics, and multiple securities class‑action filings raise headline and legal risk.
• On fundamentals, PayPal has a market cap of about $45.7 billion, a P/E near 9.4, a consensus rating of Hold with a $56.61 price target, a recently paid quarterly dividend (~1.1% yield), and notable insider selling—factors that contribute to mixed sentiment and potential volatility.

PayPal Holdings, Inc. (NASDAQ:PYPL - Get Free Report) shot up 2% during mid-day trading on Friday . The company traded as high as $51.20 and last traded at $50.81. 18,687,114 shares traded hands during mid-day trading, a decline of 16% from the average session volume of 22,334,813 shares. The stock had previously closed at $49.81.

Key PayPal News

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: Michael Burry disclosed a sizable new PayPal stake (~3.5%), drawing attention from value and activist-focused investors and helping fuel speculative buying. Michael Burry Reveals Major PayPal (PYPL) Position Amid Software Stock Buying Spree
• Positive Sentiment: PayPal’s PYUSD stablecoin is gaining traction; growth in PYUSD and PayPal’s distribution advantage are cited as medium-term revenue and product positives by crypto/payments analysts. PayPal’s (PYPL) PYUSD Is Growing Fast and the Distribution Advantage Is Hard to Ignore
• Positive Sentiment: Product/monetization moves such as Venmo’s Stash expansion (higher rewards/merchant reach) could lift consumer engagement and TPV over time. PayPal's Venmo Stash Expansion: Will This Drive More Transactions?
• Positive Sentiment: Market chatter about activist interest and potential takeover/strategic action has pushed speculative buying and helped shares recover. Why PayPal Stock Popped Today
• Neutral Sentiment: Broader industry reports forecast steady growth in the U.S. payment gateways market through 2034 — a constructive backdrop but not an immediate catalyst. United States Payment Gateways Market Forecast and Company Analysis Report 2026-2034 Featuring PayPal...
• Neutral Sentiment: Analyst coverage is mixed: some models tighten fair value only slightly and highlight takeover talk, while others cut targets — creating a polarized consensus that supports volatility. How The Story Around PayPal Holdings (PYPL) Is Shifting With Mixed Views And Takeover Talk
• Negative Sentiment: Mizuho and other analysts downgraded/flagged PayPal on rising competitive risk from Elon Musk’s X Money / X Money features (high interest promos, integrated app reach) — a direct threat to Venmo and wallet dynamics. PayPal (PYPL) Stock Faces Mizuho Downgrade Amid X Competition Concerns
• Negative Sentiment: Mounting securities class-action filings and multiple law‑firm deadline alerts raise legal and headline risk that could pressure sentiment and increase potential liabilities/costs. DEADLINE ALERT for PYPL: Law Offices of Howard G. Smith Reminds Investors...

Analyst Upgrades and Downgrades

A number of brokerages have issued reports on PYPL. Dbs Bank raised PayPal to a "hold" rating in a research report on Friday, February 6th. Royal Bank Of Canada cut their target price on PayPal from $91.00 to $59.00 and set an "outperform" rating on the stock in a research report on Wednesday, February 4th. The Goldman Sachs Group cut their target price on PayPal from $64.00 to $41.00 and set a "sell" rating on the stock in a research report on Wednesday, February 4th. TD Cowen reissued a "hold" rating on shares of PayPal in a research report on Tuesday, February 3rd. Finally, Piper Sandler cut their target price on PayPal from $76.00 to $74.00 and set a "neutral" rating on the stock in a research report on Wednesday, January 14th. Seven equities research analysts have rated the stock with a Buy rating, thirty-two have given a Hold rating and six have issued a Sell rating to the company. Based on data from MarketBeat.com, PayPal presently has a consensus rating of "Hold" and a consensus price target of $56.61.

PayPal Stock Up 2.0%

The business has a 50-day moving average price of $44.67 and a two-hundred day moving average price of $56.05. The company has a quick ratio of 1.29, a current ratio of 1.29 and a debt-to-equity ratio of 0.49. The firm has a market cap of $45.71 billion, a PE ratio of 9.39, a price-to-earnings-growth ratio of 1.49 and a beta of 1.40.

PayPal (NASDAQ:PYPL - Get Free Report) last posted 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). PayPal had a return on equity of 25.42% and a net margin of 15.77%.The company had revenue of $8.68 billion for the quarter, compared to analysts' expectations of $8.82 billion. During the same period in the prior year, the company posted $1.19 EPS. The firm's revenue was up 4.0% compared to the same quarter last year. On average, equities research analysts expect that PayPal Holdings, Inc. will post 5.03 EPS for the current year.

PayPal Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, March 25th. Investors of record on Wednesday, March 4th were issued a $0.14 dividend. This represents a $0.56 annualized dividend and a yield of 1.1%. The ex-dividend date of this dividend was Wednesday, March 4th. PayPal's dividend payout ratio is 10.35%.

Insider Activity at PayPal

In related news, CAO Chris Natali sold 2,208 shares of the stock in a transaction on Tuesday, March 3rd. The stock was sold at an average price of $44.73, for a total value of $98,763.84. Following the transaction, the chief accounting officer owned 1,140 shares of the company's stock, valued at $50,992.20. This represents a 65.95% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, EVP Frank Keller sold 29,581 shares of the stock in a transaction 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 completion of the transaction, the executive vice president directly owned 51,567 shares in the company, valued at $2,373,113.34. This trade represents a 36.45% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 87,608 shares of company stock valued at $3,831,535 over the last quarter. 0.08% of the stock is owned by insiders.

Hedge Funds Weigh In On PayPal

Large investors have recently bought and sold shares of the business. Bard Associates Inc. purchased a new position in PayPal in the fourth quarter valued at $25,000. Caitong International Asset Management Co. Ltd boosted its stake in PayPal by 15,233.3% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 460 shares of the credit services provider's stock valued at $27,000 after acquiring an additional 457 shares in the last quarter. Safe Harbor Fiduciary LLC acquired a new position in PayPal in the fourth quarter valued at $28,000. Cloud Capital Management LLC acquired a new position in PayPal in the third quarter valued at $30,000. Finally, Kelleher Financial Advisors acquired a new position in PayPal in the third quarter valued at $30,000. Hedge funds and other institutional investors own 68.32% of the company's stock.

PayPal Company Profile

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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