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PayPal (NASDAQ:PYPL) Stock Price Down 2.7% - What's Next?

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Key Points

  • PayPal shares fell 2.7% on Tuesday, trading as low as $42.26 amid lighter-than-average volume, signaling continued pressure on the stock.
  • Analyst sentiment remains mixed to cautious: Goldman Sachs reiterated a Sell rating, while other firms held Neutral/Market Perform views, and the overall consensus rating is Hold with a $55.01 price target.
  • Despite the stock weakness, recent fundamentals were solid, with PayPal beating quarterly EPS and revenue estimates and posting 7.2% year-over-year revenue growth in its latest earnings report.
  • MarketBeat previews top five stocks to own in July.

PayPal Holdings, Inc. (NASDAQ:PYPL - Get Free Report) shares were down 2.7% on Tuesday . The stock traded as low as $42.26 and last traded at $43.18. Approximately 14,120,671 shares traded hands during mid-day trading, a decline of 28% from the average session volume of 19,651,693 shares. The stock had previously closed at $44.38.

Trending Headlines about PayPal

Here are the key news stories impacting PayPal this week:

Wall Street Analyst Weigh In

Several equities research analysts have recently issued reports on the company. Cantor Fitzgerald raised their price objective on PayPal from $42.00 to $54.00 and gave the stock a "neutral" rating in a report on Tuesday, May 5th. Daiwa Securities Group upgraded PayPal from a "hold" rating to an "outperform" rating in a research note on Wednesday, May 6th. Zacks Research upgraded PayPal from a "strong sell" rating to a "hold" rating in a research note on Friday, April 17th. BMO Capital Markets assumed coverage on PayPal in a research report on Tuesday, April 21st. They set a "market perform" rating and a $52.00 target price on the stock. Finally, Deutsche Bank Aktiengesellschaft decreased their price target on PayPal from $50.00 to $45.00 in a research note on Monday, May 11th. Eight equities research analysts have rated the stock with a Buy rating, thirty-two have assigned a Hold rating and five have assigned a Sell rating to the stock. Based on data from MarketBeat, the company currently has an average rating of "Hold" and a consensus price target of $55.01.

Read Our Latest Stock Report on PYPL

PayPal Price Performance

The company has a market capitalization of $38.09 billion, a PE ratio of 8.10, a PEG ratio of 1.11 and a beta of 1.34. The company has a current ratio of 1.26, a quick ratio of 1.26 and a debt-to-equity ratio of 0.47. The company's 50 day moving average price is $45.01 and its 200-day moving average price is $48.38.

PayPal (NASDAQ:PYPL - Get Free Report) last issued its earnings results on Tuesday, May 5th. The credit services provider reported $1.34 earnings per share for the quarter, topping the consensus estimate of $1.27 by $0.07. PayPal had a return on equity of 25.02% and a net margin of 15.00%.The business had revenue of $8.35 billion for the quarter, compared to analyst estimates of $8.05 billion. During the same period last year, the company posted $1.33 EPS. The business's quarterly revenue was up 7.2% on a year-over-year basis. On average, sell-side analysts forecast that PayPal Holdings, Inc. will post 5.3 earnings per share for the current fiscal year.

PayPal Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Thursday, June 25th. Stockholders of record on Thursday, June 4th were paid a $0.14 dividend. This represents a $0.56 annualized dividend and a dividend yield of 1.3%. The ex-dividend date of this dividend was Thursday, June 4th. PayPal's payout ratio is currently 10.51%.

Insider Buying and Selling

In other PayPal news, insider Frank Keller sold 4,612 shares of PayPal stock in a transaction that occurred on Wednesday, June 3rd. The shares were sold at an average price of $42.54, for a total transaction of $196,194.48. Following the transaction, the insider directly owned 41,567 shares of the company's stock, valued at $1,768,260.18. The trade was a 9.99% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Chris Natali sold 1,337 shares of the business's stock in a transaction that occurred on Wednesday, April 29th. The stock was sold at an average price of $49.46, for a total transaction of $66,128.02. Following the sale, the chief accounting officer owned 1,586 shares of the company's stock, valued at approximately $78,443.56. This represents a 45.74% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 20,612 shares of company stock valued at $966,623. 0.63% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On PayPal

Hedge funds and other institutional investors have recently made changes to their positions in the business. Brighton Jones LLC raised its position in PayPal by 15.2% in the fourth quarter. Brighton Jones LLC now owns 6,989 shares of the credit services provider's stock valued at $596,000 after purchasing an additional 924 shares during the period. Revolve Wealth Partners LLC purchased a new stake in shares of PayPal in the fourth quarter worth about $248,000. Sivia Capital Partners LLC grew its stake in shares of PayPal by 41.5% in the second quarter. Sivia Capital Partners LLC now owns 4,470 shares of the credit services provider's stock valued at $332,000 after buying an additional 1,310 shares in the last quarter. United Bank raised its holdings in shares of PayPal by 40.1% during the 2nd quarter. United Bank now owns 17,388 shares of the credit services provider's stock valued at $1,292,000 after buying an additional 4,974 shares during the period. Finally, Federated Hermes Inc. lifted its position in PayPal by 17.9% during the 2nd quarter. Federated Hermes Inc. now owns 18,909 shares of the credit services provider's stock worth $1,405,000 after acquiring an additional 2,865 shares in the last quarter. Institutional investors and hedge funds own 68.32% of the company's stock.

About PayPal

(Get Free Report)

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.

Featured Stories

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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