PayPal (NASDAQ:PYPL) Stock Price Down 1.7% - Should You Sell?

Key Points

• PayPal's stock price fell by 1.7% on Wednesday, trading at approximately $67.98, with a total trading volume of about 11.2 million shares.
• Analysts have mixed ratings on PayPal, with a consensus rating of "Hold" and a target price of $83.50, reflecting uncertainty about the stock's performance.
• PayPal's recent earnings report showed earnings per share of $1.40, exceeding estimates, and the company has provided guidance of 5.150-5.300 EPS for FY 2025.

PayPal Holdings, Inc. (NASDAQ:PYPL - Get Free Report) dropped 1.7% during trading on Wednesday . The stock traded as low as $67.84 and last traded at $67.98. Approximately 11,184,510 shares were traded during mid-day trading, a decline of 3% from the average daily volume of 11,584,200 shares. The stock had previously closed at $69.15.

Analyst Ratings Changes

PYPL has been the subject of several recent analyst reports. Seaport Res Ptn raised shares of PayPal from a "strong sell" rating to a "hold" rating in a report on Monday, July 14th. Royal Bank Of Canada reaffirmed an "outperform" rating and set a $88.00 target price on shares of PayPal in a report on Thursday, June 26th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of PayPal in a report on Wednesday, October 8th. Piper Sandler set a $74.00 target price on shares of PayPal in a report on Tuesday, July 29th. Finally, JMP Securities dropped their target price on shares of PayPal from $110.00 to $100.00 and set a "market outperform" rating for the company in a report on Wednesday, July 30th. Sixteen equities research analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and three have assigned a Sell rating to the company. Based on data from MarketBeat, the stock has a consensus rating of "Hold" and a consensus target price of $83.50.

PayPal Trading Down 1.7%

The company has a debt-to-equity ratio of 0.56, a current ratio of 1.33 and a quick ratio of 1.33. The company has a market cap of $64.95 billion, a PE ratio of 14.53, a price-to-earnings-growth ratio of 1.06 and a beta of 1.44. The company's 50 day simple moving average is $68.97 and its two-hundred day simple moving average is $69.44.

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 the consensus estimate of $1.30 by $0.10. The company had revenue of $8.29 billion during the quarter, compared to analyst estimates of $8.08 billion. PayPal had a net margin of 14.49% and a return on equity of 25.35%. During the same quarter last year, the firm posted $1.19 earnings per share. PayPal has set its Q3 2025 guidance at 1.180-1.220 EPS. FY 2025 guidance at 5.150-5.300 EPS. As a group, sell-side analysts anticipate that PayPal Holdings, Inc. will post 5.03 EPS for the current fiscal year.

Insider Transactions at PayPal

In related news, CAO Chris Natali sold 7,102 shares of the firm's stock in a transaction that occurred on Thursday, July 31st. The shares were sold at an average price of $69.35, for a total value of $492,523.70. The sale was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, insider Suzan Kereere sold 4,162 shares of the firm's stock in a transaction that occurred on Tuesday, August 19th. The shares were sold at an average price of $69.39, for a total transaction of $288,801.18. Following the completion of the sale, the insider directly owned 48,483 shares in the company, valued at approximately $3,364,235.37. This trade represents a 7.91% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 15,102 shares of company stock valued at $1,046,607. 0.08% of the stock is currently owned by corporate insiders.

Institutional Trading of PayPal

Several hedge funds have recently added to or reduced their stakes in the company. Evermay Wealth Management LLC raised 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 worth $27,000 after purchasing an additional 363 shares in the last quarter. Hilltop National Bank acquired a new stake in PayPal during the second quarter worth approximately $27,000. Garde Capital Inc. acquired a new stake in PayPal during the first quarter worth approximately $28,000. Tsfg LLC raised its holdings in PayPal by 81.6% during the first quarter. Tsfg LLC now owns 445 shares of the credit services provider's stock worth $29,000 after purchasing an additional 200 shares in the last quarter. Finally, MUFG Securities EMEA plc raised its holdings in PayPal by 100.4% during the second quarter. MUFG Securities EMEA plc now owns 385 shares of the credit services provider's stock worth $29,000 after purchasing an additional 87,524 shares in the last quarter. Institutional investors and hedge funds own 68.32% of the company's stock.

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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