PayPal (NASDAQ:PYPL) Stock Price Down 1.4% - Here's Why

Key Points

• PayPal's stock price decreased by 1.4%, closing at $68.86 after trading as low as $68.16, with a significant increase in trading volume.
• Recent research reports showed a mix of ratings for PayPal, with 17 analysts giving it a "Buy" rating, while others downgraded it to "Hold," leading to a consensus rating of "Hold" and an average price target of $84.07.
• Insider activity revealed that two executives sold shares recently, totaling over $550,000 worth of stock, which has raised some concerns about insider confidence in the company's future performance.

PayPal Holdings, Inc. (NASDAQ:PYPL - Get Free Report) fell 1.4% during trading on Monday . The company traded as low as $68.16 and last traded at $68.86. 19,845,996 shares changed hands during trading, an increase of 71% from the average session volume of 11,578,236 shares. The stock had previously closed at $69.84.

Wall Street Analyst Weigh In

PYPL has been the topic of a number of recent research reports. Morgan Stanley reissued a "positive" rating on shares of PayPal in a report on Wednesday, July 30th. Wall Street Zen cut PayPal from a "buy" rating to a "hold" rating in a report on Saturday, October 4th. Citigroup reissued a "buy" rating on shares of PayPal in a report on Tuesday, July 29th. Barclays reissued an "overweight" rating on shares of PayPal in a report on Tuesday, July 29th. Finally, Weiss Ratings reissued a "hold (c)" rating on shares of PayPal in a report on Wednesday, October 8th. Seventeen research analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and three have assigned a Sell rating to the stock. According to data from MarketBeat.com, PayPal currently has a consensus rating of "Hold" and an average price target of $84.07.

PayPal Price Performance

The firm has a market capitalization of $65.79 billion, a P/E ratio of 14.71, a price-to-earnings-growth ratio of 1.08 and a beta of 1.44. 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 business has a 50 day simple moving average of $68.92 and a two-hundred day simple moving average of $69.42.

PayPal (NASDAQ:PYPL - Get Free Report) last announced its earnings results on Tuesday, July 29th. The credit services provider reported $1.40 earnings per share for the quarter, topping analysts' consensus estimates of $1.30 by $0.10. The business had revenue of $8.29 billion for the quarter, compared to analyst estimates of $8.08 billion. PayPal had a return on equity of 25.35% and a net margin of 14.49%.During the same period in the prior year, the company earned $1.19 EPS. PayPal has set its Q3 2025 guidance at 1.180-1.220 EPS. FY 2025 guidance at 5.150-5.300 EPS. On average, sell-side analysts expect that PayPal Holdings, Inc. will post 5.03 EPS for the current fiscal year.

Insider Activity

In other news, EVP Diego Scotti sold 3,838 shares of the stock in a transaction dated Thursday, July 31st. The stock was sold at an average price of $69.12, for a total transaction of $265,282.56. Following the transaction, the executive vice president directly owned 16,989 shares in the company, valued at approximately $1,174,279.68. This represents a 18.43% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Suzan Kereere sold 4,162 shares of the stock in a transaction dated Tuesday, August 19th. The shares were sold at an average price of $69.39, for a total value of $288,801.18. Following the transaction, the insider owned 48,483 shares in the company, valued at $3,364,235.37. This trade represents a 7.91% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders have sold 15,102 shares of company stock worth $1,046,607. 0.08% of the stock is currently owned by insiders.

Hedge Funds Weigh In On PayPal

Several institutional investors and hedge funds have recently bought and sold shares of the stock. Vanguard Group Inc. grew its position in PayPal by 0.3% during the 1st quarter. Vanguard Group Inc. now owns 86,221,849 shares of the credit services provider's stock worth $5,625,976,000 after acquiring an additional 276,339 shares during the last quarter. Norges Bank bought a new position in PayPal during the 2nd quarter worth approximately $921,570,000. Artisan Partners Limited Partnership grew its position in PayPal by 1.6% during the 2nd quarter. Artisan Partners Limited Partnership now owns 11,992,031 shares of the credit services provider's stock worth $891,248,000 after acquiring an additional 184,014 shares during the last quarter. Deutsche Bank AG grew its position in PayPal by 19.1% during the 1st quarter. Deutsche Bank AG now owns 11,238,218 shares of the credit services provider's stock worth $733,294,000 after acquiring an additional 1,798,330 shares during the last quarter. Finally, Invesco Ltd. grew its position in PayPal by 5.5% during the 2nd quarter. Invesco Ltd. now owns 10,038,584 shares of the credit services provider's stock worth $746,068,000 after acquiring an additional 522,514 shares during the last quarter. 68.32% of the stock is currently owned by institutional investors.

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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