PayPal (NASDAQ:PYPL) Stock Price Down 2.8% - What's Next?

Key Points

• PayPal's stock price dropped 2.8% recently, trading as low as $66.23, and has seen a significant decline in trading volume compared to averages.
• Equities analysts are generally optimistic, with 17 ratings classified as "Buy," and the consensus price target set at $85.00.
• Despite the stock decline, PayPal reported better-than-expected earnings with $1.40 EPS for the last quarter, surpassing the consensus estimate of $1.30.

PayPal Holdings, Inc. (NASDAQ:PYPL - Get Free Report)'s share price traded down 2.8% during trading on Thursday . The company traded as low as $66.23 and last traded at $67.67. 7,307,639 shares changed hands during trading, a decline of 34% from the average session volume of 11,017,211 shares. The stock had previously closed at $69.64.

Analysts Set New Price Targets

A number of equities analysts have recently commented on the company. Morgan Stanley reissued a "positive" rating on shares of PayPal in a research report on Wednesday, July 30th. Royal Bank Of Canada reiterated an "outperform" rating and issued a $88.00 price objective on shares of PayPal in a report on Thursday, June 26th. Macquarie reaffirmed an "outperform" rating and issued a $95.00 price target on shares of PayPal in a report on Wednesday, July 30th. Piper Sandler set a $74.00 price target on shares of PayPal in a research note on Tuesday, July 29th. Finally, Wall Street Zen upgraded shares of PayPal from a "hold" rating to a "buy" rating in a research report on Saturday, August 2nd. Seventeen research analysts have rated the stock with a Buy rating, fourteen have issued a Hold rating and two have given 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 $85.00.

PayPal Stock Down 1.7%

The company has a quick ratio of 1.33, a current ratio of 1.33 and a debt-to-equity ratio of 0.56. The stock has a market capitalization of $65.41 billion, a PE ratio of 14.63, a PEG ratio of 1.08 and a beta of 1.43. The firm's fifty day moving average is $71.86 and its 200-day moving average is $69.89.

PayPal (NASDAQ:PYPL - Get Free Report) last released its earnings results on Tuesday, July 29th. The credit services provider reported $1.40 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.30 by $0.10. The company had revenue of $8.29 billion for the quarter, compared to analysts' expectations of $8.08 billion. PayPal had a return on equity of 25.35% and a net margin of 14.49%.During the same quarter in the previous year, the firm 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, equities research analysts predict that PayPal Holdings, Inc. will post 5.03 earnings per share for the current year.

Insiders Place Their Bets

In other PayPal news, CAO Chris Natali sold 7,102 shares of the firm's stock in a transaction on Thursday, July 31st. The stock was sold at an average price of $69.35, for a total value of $492,523.70. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Suzan Kereere sold 4,162 shares of the firm's stock in a transaction 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 sale, the insider directly owned 48,483 shares of the company's stock, 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. Insiders sold a total of 26,898 shares of company stock worth $1,909,636 in the last ninety days. 0.08% of the stock is owned by insiders.

Institutional Trading of PayPal

Several large investors have recently bought and sold shares of the company. Norges Bank purchased a new position in PayPal in the 2nd quarter valued at about $921,570,000. Nuveen LLC purchased a new stake in shares of PayPal during the 1st quarter worth about $529,264,000. Goldman Sachs Group Inc. boosted its position in PayPal by 44.6% during the 1st quarter. Goldman Sachs Group Inc. now owns 8,559,376 shares of the credit services provider's stock worth $558,499,000 after purchasing an additional 2,638,815 shares during the period. Assenagon Asset Management S.A. grew its stake in shares of PayPal by 124.1% in the first quarter. Assenagon Asset Management S.A. now owns 3,497,415 shares of the credit services provider's stock valued at $228,206,000 after buying an additional 1,936,520 shares in the last quarter. Finally, Lazard Asset Management LLC boosted its holdings in PayPal by 1,066.0% in the second quarter. Lazard Asset Management LLC now owns 2,106,215 shares of the credit services provider's stock valued at $156,532,000 after purchasing an additional 1,925,583 shares during 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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