PayPal (NASDAQ:PYPL) Stock Price Down 2.2% Following Analyst Downgrade

Key Points

• Shares fell 2.2% to about $58.52 after Goldman Sachs cut its price target to $65 and kept a sell rating, with trading volume up ~17% versus the average session.
• Analyst sentiment is mixed — 11 Buy, 24 Hold and 4 Sell ratings — with an average target of $76.88, although several firms have recently trimmed their price targets.
• Fundamentals remain solid: PayPal beat Q3 estimates (EPS $1.34 vs. $1.20 expected; revenue $8.42B, +7.3% YoY), provided FY2025 EPS guidance of $5.35–5.39, and recently paid a $0.14 quarterly dividend.

Shares of PayPal Holdings, Inc. (NASDAQ:PYPL - Get Free Report) traded down 2.2% during trading on Wednesday after The Goldman Sachs Group lowered their price target on the stock from $72.00 to $65.00. The Goldman Sachs Group currently has a sell rating on the stock. PayPal traded as low as $58.26 and last traded at $58.52. 17,756,995 shares changed hands during trading, an increase of 17% from the average session volume of 15,164,784 shares. The stock had previously closed at $59.81.

Several other research firms also recently commented on PYPL. JPMorgan Chase & Co. reiterated a "neutral" rating and set a $70.00 target price (down from $85.00) on shares of PayPal in a report on Thursday, December 4th. President Capital lowered their price target on shares of PayPal from $91.00 to $80.00 and set a "buy" rating for the company in a research report on Tuesday, November 25th. Morgan Stanley reiterated a "negative" rating on shares of PayPal in a research note on Wednesday, October 29th. Bank of America reissued a "neutral" rating and set a $68.00 price objective (down from $93.00) on shares of PayPal in a report on Thursday, December 11th. Finally, Keefe, Bruyette & Woods upped their target price on PayPal from $85.00 to $90.00 and gave the stock an "outperform" rating in a report on Wednesday, October 29th. Eleven research analysts have rated the stock with a Buy rating, twenty-four have issued a Hold rating and four have assigned a Sell rating to the stock. According to data from MarketBeat, PayPal has an average rating of "Hold" and an average target price of $76.88.

Insider Buying and Selling at PayPal

In other news, insider Suzan Kereere sold 12,500 shares of the stock in a transaction on Monday, November 3rd. The shares were sold at an average price of $68.87, for a total value of $860,875.00. Following the sale, the insider owned 30,983 shares in the company, valued at $2,133,799.21. This represents a 28.75% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP Aaron Webster sold 9,282 shares of the business's stock in a transaction on Monday, November 10th. The shares were sold at an average price of $66.29, for a total transaction of $615,303.78. Following the transaction, the executive vice president owned 35,699 shares of the company's stock, valued at $2,366,486.71. This represents a 20.64% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 36,156 shares of company stock valued at $2,432,524. 0.08% of the stock is owned by corporate insiders.

More PayPal News

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: PayPal launched its Transaction Graph Insights & Measurement program to give merchants and advertisers cross‑merchant purchase data (could strengthen PayPal Ads and merchant monetization). PayPal Ads Launches Transaction Graph Insights and Measurement to Improve Commerce Advertising Outcomes
• Positive Sentiment: YouTube now lets U.S. creators accept payouts in PayPal’s stablecoin PYUSD, increasing real‑world utility and distribution for PayPal’s crypto product. Do Kwon sentenced to 15 years, Bitcoin’s ‘choppy dance’: Hodler’s Digest, Dec. 7 – 13
• Positive Sentiment: PayPal is partnering with DP World on faster cross‑border settlement capabilities — if executed, faster settlement can make PayPal more attractive to merchants handling international sales. Digital Payments Without Borders: The Online Business Shift Behind PayPal and DP World’s Expansion
• Neutral Sentiment: Coverage from The Motley Fool profiles steady growth prospects for PYPL over the next year — useful context but not immediate market moving. Where Will PayPal Stock Be in 1 Year?
• Neutral Sentiment: Multiple niche reports note growing acceptance of PayPal at online casinos — incremental payment volume opportunities but limited near‑term EPS impact. Paypal Casinos 2026 - Online Casino That Accept Paypal By Betwhale Casino
• Negative Sentiment: Critics say PayPal’s branded checkout is losing market share, which pressures merchant volume and revenue growth if the trend continues. PayPal's Branded Checkout Is Bleeding Market Share While Management Blames 'Macro'
• Negative Sentiment: Goldman Sachs cut its PYPL price target (maintained a sell rating), a high‑profile analyst downgrade that can weigh on sentiment and prompt short‑term selling. Goldman Sachs adjusts price target on PayPal to 65 from 72, maintains sell rating
• Negative Sentiment: Analyses and headlines asking if it’s time to reassess PayPal after a ~32% one‑year decline highlight investor concern about valuation and growth durability. Is It Time To Reassess PayPal (PYPL) After A 32% One-Year Share Price Decline

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in PYPL. GSB Wealth Management LLC grew its holdings in PayPal by 1.7% in the 2nd quarter. GSB Wealth Management LLC now owns 8,160 shares of the credit services provider's stock valued at $606,000 after buying an additional 140 shares in the last quarter. Wedmont Private Capital boosted its position in shares of PayPal by 1.6% during the 3rd quarter. Wedmont Private Capital now owns 9,157 shares of the credit services provider's stock valued at $614,000 after acquiring an additional 142 shares during the last quarter. Pitti Group Wealth Management LLC boosted its position in shares of PayPal by 1.5% during the 2nd quarter. Pitti Group Wealth Management LLC now owns 10,233 shares of the credit services provider's stock valued at $761,000 after acquiring an additional 147 shares during the last quarter. Dakota Community Bank & Trust NA grew its holdings in shares of PayPal by 8.7% in the second quarter. Dakota Community Bank & Trust NA now owns 1,840 shares of the credit services provider's stock valued at $137,000 after purchasing an additional 147 shares during the period. Finally, Maia Wealth LLC grew its holdings in shares of PayPal by 2.5% in the third quarter. Maia Wealth LLC now owns 6,404 shares of the credit services provider's stock valued at $424,000 after purchasing an additional 155 shares during the period. 68.32% of the stock is owned by institutional investors and hedge funds.

PayPal Trading Down 2.2%

The company has a quick ratio of 1.34, a current ratio of 1.34 and a debt-to-equity ratio of 0.56. The company's 50-day moving average is $62.21 and its 200-day moving average is $67.68. The stock has a market capitalization of $54.75 billion, a price-to-earnings ratio of 11.73, a PEG ratio of 0.74 and a beta of 1.42.

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

PayPal Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Wednesday, December 10th. Shareholders of record on Wednesday, November 19th were paid a dividend of $0.14 per share. This represents a $0.56 annualized dividend and a yield of 1.0%. The ex-dividend date of this dividend was Wednesday, November 19th. PayPal's dividend payout ratio (DPR) is 11.22%.

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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