PayPal (NASDAQ:PYPL) Shares Up 3% After Analyst Upgrade

Key Points

• PayPal's share price increased by 3% following an upgrade from Truist Financial, which raised its price target from $65.00 to $66.00.
• The company reported earnings of $1.34 per share for Q3, exceeding analysts' expectations, with revenue of $8.42 billion, up 7.3% year-over-year.
• PayPal declared a quarterly dividend of $0.14 per share, representing an annualized yield of 0.8%, with the payment due on December 10th to shareholders of record on November 19th.

PayPal Holdings, Inc. (NASDAQ:PYPL - Get Free Report) rose 3% on Wednesday after Truist Financial raised their price target on the stock from $65.00 to $66.00. Truist Financial currently has a sell rating on the stock. PayPal traded as high as $68.21 and last traded at $68.06. Approximately 13,539,784 shares were traded during mid-day trading, an increase of 11% from the average daily volume of 12,178,139 shares. The stock had previously closed at $66.08.

Other equities research analysts have also issued research reports about the stock. Wall Street Zen raised shares of PayPal from a "hold" rating to a "buy" rating in a research report on Saturday. Macquarie increased their price target on PayPal from $95.00 to $100.00 and gave the company an "outperform" rating in a research note on Wednesday, October 29th. Canaccord Genuity Group lifted their price target on PayPal from $96.00 to $100.00 and gave the company a "buy" rating in a research note on Wednesday, October 29th. Needham & Company LLC reiterated a "hold" rating on shares of PayPal in a research report on Tuesday, October 28th. Finally, Royal Bank Of Canada upped their price objective on shares of PayPal from $88.00 to $91.00 and gave the company an "outperform" rating in a report on Tuesday, October 28th. Fifteen research analysts have rated the stock with a Buy rating, seventeen have given a Hold rating and four have given a Sell rating to the company. According to MarketBeat.com, PayPal presently has a consensus rating of "Hold" and a consensus price target of $83.03.

Insider Activity at PayPal

In other news, CAO Chris Natali sold 1,374 shares of the company's stock in a transaction dated Thursday, October 30th. The stock was sold at an average price of $69.13, for a total value of $94,984.62. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Suzan Kereere sold 12,500 shares of the company's stock in a transaction dated Monday, November 3rd. The shares were sold at an average price of $68.87, for a total transaction of $860,875.00. Following the completion of the transaction, the insider directly owned 30,983 shares of the company's stock, valued at approximately $2,133,799.21. The trade was a 28.75% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 26,874 shares of company stock valued at $1,856,968 in the last ninety days. Corporate insiders own 0.08% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of the company. Evermay Wealth Management LLC grew its holdings in PayPal by 726.0% during the first 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 last quarter. Hilltop National Bank acquired a new stake in shares of PayPal in the 2nd quarter valued at $27,000. MUFG Securities EMEA plc lifted its position in PayPal by 100.4% during the 2nd quarter. MUFG Securities EMEA plc now owns 385 shares of the credit services provider's stock worth $29,000 after buying an additional 87,524 shares in the last quarter. Cloud Capital Management LLC acquired a new position in PayPal during the 3rd quarter valued at about $30,000. Finally, Gordian Capital Singapore Pte Ltd raised its position in shares of PayPal by 41.2% in the 1st quarter. Gordian Capital Singapore Pte Ltd now owns 473 shares of the credit services provider's stock valued at $31,000 after acquiring an additional 138 shares during the period. 68.32% of the stock is owned by institutional investors and hedge funds.

PayPal Stock Performance

The stock has a 50-day moving average price of $68.96 and a 200 day moving average price of $70.30. The company has a market cap of $63.68 billion, a price-to-earnings ratio of 13.64, a price-to-earnings-growth ratio of 1.01 and a beta of 1.45. The company has a debt-to-equity ratio of 0.56, a current ratio of 1.34 and a quick ratio of 1.34.

PayPal (NASDAQ:PYPL - Get Free Report) last announced its quarterly earnings results on Tuesday, October 28th. The credit services provider reported $1.34 EPS for the quarter, beating analysts' consensus estimates of $1.20 by $0.14. The business had revenue of $8.42 billion for the quarter, compared to analyst estimates of $8.21 billion. PayPal had a net margin of 14.96% and a return on equity of 25.64%. PayPal's quarterly revenue was up 7.3% on a year-over-year basis. During the same quarter in the prior year, the business earned $1.20 EPS. PayPal has set its Q4 2025 guidance at 1.270-1.310 EPS. FY 2025 guidance at 5.350-5.390 EPS. As a group, analysts anticipate that PayPal Holdings, Inc. will post 5.03 EPS for the current fiscal year.

PayPal Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Wednesday, December 10th. Stockholders of record on Wednesday, November 19th will be paid a dividend of $0.14 per share. This represents a $0.56 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date of this dividend is Wednesday, November 19th.

PayPal Company Profile

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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