PayPal (NASDAQ:PYPL) Stock Price Down 2.8% - Should You Sell?

Key Points

• PayPal's stock fell 2.8% to $66.05, trading volume increased by 65% compared to its average session volume, indicating heightened investor activity.
• Recent analyst ratings suggest a mixed outlook with a consensus rating of "Hold" and a price target averaging $83.50, while Goldman Sachs has a "sell" rating with a target of $70.00.
• PayPal reported better-than-expected quarterly earnings of $1.40 EPS, beating estimates and posting revenue of $8.29 billion, indicating a strong operational performance.

PayPal Holdings, Inc. (NASDAQ:PYPL - Get Free Report) fell 2.8% during mid-day trading on Thursday . The company traded as low as $65.42 and last traded at $66.05. 19,164,574 shares changed hands during trading, an increase of 65% from the average session volume of 11,622,729 shares. The stock had previously closed at $67.98.

Analyst Ratings Changes

A number of brokerages have recently issued reports on PYPL. The Goldman Sachs Group set a $70.00 price target on shares of PayPal and gave the stock a "sell" rating in a report on Monday. JMP Securities lowered their price objective on shares of PayPal from $110.00 to $100.00 and set a "market outperform" rating for the company in a research report on Wednesday, July 30th. Piper Sandler set a $74.00 price objective on shares of PayPal in a research report on Tuesday, July 29th. Deutsche Bank Aktiengesellschaft set a $75.00 price objective on shares of PayPal in a research report on Tuesday, July 29th. Finally, Rothschild & Co Redburn increased their price objective on shares of PayPal from $66.00 to $70.00 and gave the stock a "neutral" rating in a research report on Tuesday, September 16th. Sixteen investment analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and three have given a Sell rating to the company. According to MarketBeat.com, PayPal currently has a consensus rating of "Hold" and an average price target of $83.50.

PayPal Price Performance

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 cap of $63.10 billion, a PE ratio of 14.11, a PEG ratio of 1.07 and a beta of 1.44. The company's 50-day simple moving average is $68.94 and its 200 day simple moving average is $69.43.

PayPal (NASDAQ:PYPL - Get Free Report) last issued its quarterly earnings results on Tuesday, July 29th. The credit services provider reported $1.40 EPS 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 company had revenue of $8.29 billion during the quarter, compared to analysts' expectations of $8.08 billion. During the same quarter last year, the company posted $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 predict that PayPal Holdings, Inc. will post 5.03 earnings per share for the current fiscal year.

Insider Buying and Selling at PayPal

In other PayPal news, 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 value of $288,801.18. Following the completion of the transaction, the insider owned 48,483 shares of the company's stock, valued at $3,364,235.37. This trade represents a 7.91% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. Also, 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 transaction of $492,523.70. The disclosure for this sale can be found here. Insiders sold 15,102 shares of company stock valued at $1,046,607 in the last 90 days. Company insiders own 0.08% of the company's stock.

Institutional Investors Weigh In On PayPal

Several institutional investors have recently modified their holdings of the company. Gordian Capital Singapore Pte Ltd lifted its position in shares of PayPal by 41.2% during the 1st quarter. Gordian Capital Singapore Pte Ltd now owns 473 shares of the credit services provider's stock worth $31,000 after purchasing an additional 138 shares during the last quarter. GSB Wealth Management LLC lifted its position in shares of PayPal by 1.7% during the 2nd quarter. GSB Wealth Management LLC now owns 8,160 shares of the credit services provider's stock worth $606,000 after purchasing an additional 140 shares during the last quarter. CreativeOne Wealth LLC lifted its position in shares of PayPal by 1.5% during the 1st quarter. CreativeOne Wealth LLC now owns 9,387 shares of the credit services provider's stock worth $613,000 after purchasing an additional 142 shares during the last quarter. Wedmont Private Capital lifted 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 worth $614,000 after purchasing an additional 142 shares during the last quarter. Finally, Pitti Group Wealth Management LLC lifted 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 worth $761,000 after purchasing an additional 147 shares during the last quarter. 68.32% of the stock is owned by hedge funds and other 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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