PayPal (NASDAQ:PYPL) Stock Price Up 2% - Should You Buy?

Key Points

• PayPal's stock price increased by 2% to $68.43, with a notable decline in trading volume compared to its average.
• Analysts hold a consensus rating of "Hold" on PayPal shares, with a price target of $85.00, while two analysts have rated the stock as a sell.
• The company reported better-than-expected quarterly earnings, with $1.40 EPS, surpassing analysts' estimates and showing a revenue of $8.29 billion.

PayPal Holdings, Inc. (NASDAQ:PYPL - Get Free Report)'s share price was up 2% on Tuesday . The stock traded as high as $68.74 and last traded at $68.43. Approximately 2,421,842 shares were traded during mid-day trading, a decline of 78% from the average daily volume of 11,196,697 shares. The stock had previously closed at $67.08.

Wall Street Analyst Weigh In

Several research analysts have issued reports on the stock. Barclays reissued an "overweight" rating on shares of PayPal in a research report on Tuesday, July 29th. Royal Bank Of Canada reiterated an "outperform" rating and set a $88.00 price target on shares of PayPal in a research report on Thursday, June 26th. Morgan Stanley reissued a "positive" rating on shares of PayPal in a research note on Wednesday, July 30th. Macquarie restated an "outperform" rating and issued a $95.00 price objective on shares of PayPal in a research report on Wednesday, July 30th. Finally, BMO Capital Markets restated a "market perform" rating on shares of PayPal in a research report on Tuesday, July 29th. Two investment analysts have rated the stock with a sell rating, fourteen have given a hold rating and eighteen have given a buy rating to the company's stock. Based on data from MarketBeat, PayPal currently has a consensus rating of "Hold" and a consensus price target of $85.00.

PayPal Trading Up 1.1%

The firm has a market cap of $64.78 billion, a P/E ratio of 14.50, a price-to-earnings-growth ratio of 1.04 and a beta of 1.42. The company has a current ratio of 1.33, a quick ratio of 1.33 and a debt-to-equity ratio of 0.56. The company's fifty day moving average price is $72.81 and its two-hundred day moving average price is $71.24.

PayPal (NASDAQ:PYPL - Get Free Report) last announced its quarterly earnings data on Tuesday, July 29th. The credit services provider reported $1.40 EPS for the quarter, beating analysts' consensus estimates of $1.30 by $0.10. PayPal had a return on equity of 25.35% and a net margin of 14.49%. The firm had revenue of $8.29 billion for the quarter, compared to analyst estimates of $8.08 billion. During the same period last year, the company earned $1.19 EPS. As a group, sell-side analysts predict that PayPal Holdings, Inc. will post 5.03 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, Director Deborah M. Messemer sold 3,795 shares of the stock in a transaction that occurred on Friday, June 6th. The stock was sold at an average price of $73.00, for a total transaction of $277,035.00. Following the completion of the transaction, the director directly owned 13,976 shares of the company's stock, valued at approximately $1,020,248. This represents a 21.36% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CAO Chris Natali sold 7,102 shares of the stock in a transaction dated 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. Over the last quarter, insiders sold 22,736 shares of company stock worth $1,620,835. 0.08% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in the company. Mpwm Advisory Solutions LLC acquired a new stake in shares of PayPal in the fourth quarter valued at approximately $25,000. Evermay Wealth Management LLC boosted its holdings in PayPal by 726.0% in the first quarter. Evermay Wealth Management LLC now owns 413 shares of the credit services provider's stock valued at $27,000 after acquiring an additional 363 shares during the last quarter. Hilltop National Bank bought a new stake in PayPal during the second quarter valued at $27,000. Garde Capital Inc. acquired a new stake in PayPal during the 1st quarter worth about $28,000. Finally, Tsfg LLC raised its position in shares of PayPal by 81.6% in the 1st quarter. Tsfg LLC now owns 445 shares of the credit services provider's stock worth $29,000 after acquiring an additional 200 shares in the last quarter. Institutional investors own 68.32% of the company's stock.

PayPal Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.