PayPal (NASDAQ:PYPL) Shares Up 3.1% - What's Next?

Key Points

• Shares were up 3.1% on Friday, last at $40.29 with volume slightly above average; PayPal’s market cap is about $37.1B and P/E 7.45, but its 50‑ and 200‑day moving averages sit much higher, reflecting a sharp YTD selloff.
• PayPal announced an agentic‑AI travel partnership with Sabre and Mindtrip to integrate payments, identity and AI‑driven booking — a strategic product win that could help monetize Venmo and payment flows over the long term.
• Risks are rising: multiple law firms have opened securities investigations, analysts have issued downgrades and cut price targets after a weak Q4 and a looming CEO transition, amplifying execution and sentiment pressure.

PayPal Holdings, Inc. (NASDAQ:PYPL - Get Free Report) traded up 3.1% on Friday . The company traded as high as $40.37 and last traded at $40.29. 25,036,937 shares changed hands during mid-day trading, an increase of 1% from the average session volume of 24,682,432 shares. The stock had previously closed at $39.08.

Key PayPal News

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: PayPal announced an agentic-AI travel partnership with Sabre and Mindtrip to integrate payments, identity and AI-driven booking — a strategic product win that supports long-term monetization of Venmo and payments flow. Read More.
• Neutral Sentiment: Analyst and media comparisons with rivals (Block et al.) highlight that PayPal has AI and Venmo momentum but faces execution risks and a checkout slowdown — useful context for investors weighing relative valuations and growth trajectories. Read More.
• Negative Sentiment: Multiple law firms (Kessler Topaz; Pomerantz) have opened securities investigations into PayPal, increasing legal/settlement risk and investor uncertainty. Read More. Read More.
• Negative Sentiment: Analyst actions are turning bearish: Zacks moved PYPL to a "Strong Sell" and individual downgrades plus a Daiwa price-target cut to $42 signal lower near-term estimates and pressure on sentiment. Read More. Read More.
• Negative Sentiment: Media coverage highlights a sharp YTD selloff and an "execution crisis" as a new CEO transition looms after a weak Q4 (EPS/revenue misses and cautious 2026 outlook), which has amplified retail bearishness and downward price momentum. Read More.

Wall Street Analyst Weigh In

A number of analysts have recently weighed in on the company. UBS Group reissued a "neutral" rating and set a $44.00 price objective on shares of PayPal in a research note on Wednesday, February 4th. Canaccord Genuity Group reaffirmed a "hold" rating and issued a $42.00 price target (down previously from $100.00) on shares of PayPal in a research report on Wednesday, February 4th. The Goldman Sachs Group cut their price objective on shares of PayPal from $64.00 to $41.00 and set a "sell" rating on the stock in a research report on Wednesday, February 4th. Bank of America reaffirmed a "neutral" rating and issued a $68.00 target price (down from $93.00) on shares of PayPal in a report on Thursday, December 11th. Finally, KeyCorp reissued a "hold" rating on shares of PayPal in a research report on Wednesday, October 22nd. Ten research analysts have rated the stock with a Buy rating, thirty have assigned a Hold rating and five have assigned a Sell rating to the stock. According to MarketBeat.com, the company has a consensus rating of "Hold" and a consensus price target of $61.03.

PayPal Stock Up 3.1%

The firm has a market cap of $37.08 billion, a P/E ratio of 7.45, a price-to-earnings-growth ratio of 1.05 and a beta of 1.43. The company has a debt-to-equity ratio of 0.49, a current ratio of 1.29 and a quick ratio of 1.29. The company's 50-day simple moving average is $55.45 and its 200 day simple moving average is $63.42.

PayPal (NASDAQ:PYPL - Get Free Report) last announced its quarterly earnings data on Tuesday, February 3rd. The credit services provider reported $1.23 EPS for the quarter, missing the consensus estimate of $1.29 by ($0.06). The business had revenue of $8.68 billion during 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 business's revenue was up 4.0% compared to the same quarter last year. During the same period last year, the company earned $1.19 EPS. Research analysts anticipate that PayPal Holdings, Inc. will post 5.03 EPS for the current fiscal year.

PayPal Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, March 25th. Investors of record on Wednesday, March 4th will be issued a $0.14 dividend. This represents a $0.56 annualized dividend and a yield of 1.4%. The ex-dividend date of this dividend is Wednesday, March 4th. PayPal's payout ratio is presently 10.35%.

Insider Activity

In related news, EVP Frank Keller sold 3,478 shares of the firm's stock in a transaction dated Friday, February 6th. The stock was sold at an average price of $40.20, for a total transaction of $139,815.60. Following the completion of the sale, the executive vice president directly owned 51,567 shares of the company's stock, valued at approximately $2,072,993.40. This trade represents a 6.32% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Suzan Kereere sold 4,162 shares of the company's stock in a transaction on Wednesday, November 19th. The stock was sold at an average price of $59.84, for a total value of $249,054.08. Following the sale, the insider directly owned 30,983 shares in the company, valued at $1,854,022.72. This represents a 11.84% decrease in their position. The SEC filing for this sale provides additional information. 0.08% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On PayPal

Institutional investors have recently added to or reduced their stakes in the business. Caitong International Asset Management Co. Ltd lifted its position in PayPal by 15,233.3% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 460 shares of the credit services provider's stock worth $27,000 after acquiring an additional 457 shares in the last quarter. MUFG Securities EMEA plc boosted 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 acquiring an additional 87,524 shares during the period. Cloud Capital Management LLC bought a new position in shares of PayPal in the third quarter valued at approximately $30,000. Kelleher Financial Advisors bought a new stake in shares of PayPal in the 3rd quarter worth approximately $30,000. Finally, Advocate Investing Services LLC acquired a new stake in shares of PayPal in the fourth quarter worth $30,000. 68.32% of the stock is currently owned by institutional investors and hedge funds.

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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