PayPal (NASDAQ:PYPL) Stock Price Down 1.3% - Here's What Happened

Key Points

• PayPal's stock price decreased by 1.3% to $68.52 with a traded volume significantly lower than its average, indicating decreased investor activity.
• Analysts have mixed opinions on PayPal, with a consensus rating of "Moderate Buy" and a target price averaging $84.57, despite some upgrades and downgrades in recent reports.
• Insider trading activity has been notable, with executives selling shares recently, leading to a decrease in their ownership within the company.

Shares of PayPal Holdings, Inc. (NASDAQ:PYPL - Get Free Report) dropped 1.3% on Thursday . The stock traded as low as $68.49 and last traded at $68.52. Approximately 3,019,385 shares traded hands during trading, a decline of 73% from the average daily volume of 11,222,454 shares. The stock had previously closed at $69.42.

Wall Street Analysts Forecast Growth

Several research analysts recently weighed in on the stock. Seaport Res Ptn upgraded shares of PayPal from a "strong sell" rating to a "hold" rating in a research report on Monday, July 14th. Deutsche Bank Aktiengesellschaft set a $75.00 price target on PayPal in a report on Tuesday, July 29th. Wells Fargo & Company reduced their target price on shares of PayPal from $80.00 to $74.00 and set an "equal weight" rating on the stock in a report on Wednesday, April 16th. Robert W. Baird increased their target price on shares of PayPal from $78.00 to $79.00 and gave the company an "outperform" rating in a research report on Wednesday, April 30th. Finally, Compass Point initiated coverage on shares of PayPal in a research note on Wednesday, April 23rd. They set a "sell" rating and a $56.00 target price for the company. Two analysts have rated the stock with a sell rating, fourteen have given a hold rating, nineteen have assigned a buy rating and one has given a strong buy rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $84.57.

PayPal Stock Performance

The company's fifty day simple moving average is $72.99 and its two-hundred day simple moving average is $71.96. The company has a debt-to-equity ratio of 0.56, a quick ratio of 1.33 and a current ratio of 1.33. The company has a market capitalization of $65.18 billion, a price-to-earnings ratio of 14.58, a price-to-earnings-growth ratio of 1.04 and a beta of 1.42.

PayPal (NASDAQ:PYPL - Get Free Report) last issued its quarterly earnings data on Tuesday, July 29th. The credit services provider reported $1.40 earnings per share for the quarter, beating the consensus estimate of $1.30 by $0.10. PayPal had a net margin of 14.49% and a return on equity of 25.35%. The firm had revenue of $8.29 billion for the quarter, compared to the consensus estimate of $8.08 billion. During the same period last year, the firm posted $1.19 EPS. Equities research analysts predict that PayPal Holdings, Inc. will post 5.03 earnings per share for the current fiscal year.

Insider Buying and Selling

In other PayPal news, EVP Diego Scotti sold 3,838 shares of the business's stock in a transaction dated Thursday, July 31st. The stock was sold at an average price of $69.12, for a total value of $265,282.56. Following the completion of the sale, the executive vice president owned 16,989 shares of the company's stock, valued at $1,174,279.68. The trade was a 18.43% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CAO Chris Natali sold 7,102 shares of PayPal stock in a transaction on Thursday, July 31st. The stock was sold at an average price of $69.35, for a total transaction of $492,523.70. The disclosure for this sale can be found here. In the last three months, insiders sold 22,736 shares of company stock valued at $1,620,835. 0.08% of the stock is currently owned by company insiders.

Institutional Trading of PayPal

Institutional investors and hedge funds have recently modified their holdings of the company. Zions Bancorporation National Association UT increased its position in shares of PayPal by 1.2% during the 2nd quarter. Zions Bancorporation National Association UT now owns 73,490 shares of the credit services provider's stock worth $5,462,000 after purchasing an additional 868 shares in the last quarter. Midwest Trust Co bought a new stake in PayPal in the second quarter valued at about $33,598,000. DJE Kapital AG grew its holdings in PayPal by 29.1% during the second quarter. DJE Kapital AG now owns 109,401 shares of the credit services provider's stock valued at $8,115,000 after purchasing an additional 24,649 shares during the period. Acadian Asset Management LLC increased its stake in PayPal by 317.8% during the 2nd quarter. Acadian Asset Management LLC now owns 365,000 shares of the credit services provider's stock worth $27,123,000 after purchasing an additional 277,642 shares in the last quarter. Finally, Global Wealth Management Investment Advisory Inc. boosted its stake in PayPal by 2.9% in the 2nd quarter. Global Wealth Management Investment Advisory Inc. now owns 30,857 shares of the credit services provider's stock worth $2,293,000 after purchasing an additional 875 shares during the period. 68.32% of the stock is currently owned by institutional investors.

About PayPal

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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