PayPal (NASDAQ:PYPL) Stock Price Up 2.3% - Time to Buy?

Key Points

• PayPal shares rose 2.3% to $60.59, trading above both the 50-day and 200-day moving averages, while volume was about 50% below average.
• Analyst sentiment remains cautious: the stock has a consensus “Hold” rating from MarketBeat, with an average price target of $55.72, below its current price.
• PayPal exceeded quarterly expectations with EPS of $1.38 versus $1.28 estimated and revenue of $8.68 billion, up 4.8% year over year; it also declared a $0.14 quarterly dividend, yielding approximately 0.9%.

PayPal Holdings, Inc. (NASDAQ:PYPL - Get Free Report)'s share price was up 2.3% on Thursday . The company traded as high as $60.76 and last traded at $60.59. Approximately 9,513,943 shares were traded during trading, a decline of 50% from the average session volume of 18,933,453 shares. The stock had previously closed at $59.20.

Analyst Ratings Changes

Several brokerages have weighed in on PYPL. Telsey Advisory Group lowered PayPal to a "market perform" rating in a report on Friday, July 24th. Canaccord Genuity Group restated a "hold" rating and issued a $55.00 target price on shares of PayPal in a research note on Wednesday, July 29th. Bank of America lowered their target price on PayPal from $55.00 to $53.00 and set a "neutral" rating on the stock in a research note on Wednesday, May 6th. Susquehanna upped their price target on PayPal from $63.00 to $67.00 and gave the company a "positive" rating in a research report on Wednesday, July 29th. Finally, Piper Sandler cut their price target on PayPal from $46.00 to $42.00 and set a "neutral" rating for the company in a research note on Monday, June 29th. Nine analysts have rated the stock with a Buy rating, thirty-four have assigned a Hold rating and four have assigned a Sell rating to the company's stock. According to MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus target price of $55.72.

PayPal Stock Performance

The business has a 50 day moving average of $49.37 and a 200-day moving average of $47.15. The company has a market capitalization of $51.83 billion, a P/E ratio of 11.45, a price-to-earnings-growth ratio of 1.44 and a beta of 1.30. The company has a debt-to-equity ratio of 0.55, a quick ratio of 1.29 and a current ratio of 1.29.

PayPal (NASDAQ:PYPL - Get Free Report) last issued its earnings results on Tuesday, July 28th. The credit services provider reported $1.38 EPS for the quarter, topping the consensus estimate of $1.28 by $0.10. The business had revenue of $8.68 billion during the quarter, compared to the consensus estimate of $8.47 billion. PayPal had a return on equity of 24.39% and a net margin of 14.36%.The firm's revenue was up 4.8% compared to the same quarter last year. During the same quarter last year, the company earned $1.40 EPS. On average, sell-side analysts predict that PayPal Holdings, Inc. will post 5.37 EPS for the current fiscal year.

PayPal Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, September 25th. Stockholders of record on Friday, September 4th will be given a $0.14 dividend. This represents a $0.56 dividend on an annualized basis and a dividend yield of 0.9%. The ex-dividend date is Friday, September 4th. PayPal's dividend payout ratio (DPR) is 10.59%.

Insider Activity at PayPal

In other PayPal news, insider Frank Keller sold 4,612 shares of the stock in a transaction that occurred on Wednesday, June 3rd. The shares were sold at an average price of $42.54, for a total value of $196,194.48. Following the sale, the insider directly owned 41,567 shares in the company, valued at $1,768,260.18. This represents a 9.99% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available 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 firm's stock in a transaction on Wednesday, July 29th. The shares were sold at an average price of $58.10, for a total transaction of $77,679.70. Following the completion of the transaction, the chief accounting officer directly owned 2,216 shares of the company's stock, valued at approximately $128,749.60. The trade was a 37.63% 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. Over the last 90 days, insiders sold 10,612 shares of company stock valued at $484,534. Corporate insiders own 0.63% of the company's stock.

Institutional Investors Weigh In On PayPal

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Cibc World Market Inc. bought a new stake in PayPal during the second quarter valued at $6,476,000. OMERS ADMINISTRATION Corp bought a new position in PayPal in the 2nd quarter worth about $88,084,000. Osmosis Investment Management UK Ltd bought a new position in PayPal in the 2nd quarter worth about $1,539,000. Sanctuary Advisors LLC purchased a new stake in shares of PayPal in the 2nd quarter valued at about $1,844,000. Finally, Meiji Yasuda Asset Management Co Ltd. purchased a new stake in shares of PayPal in the 2nd quarter valued at about $2,021,000. Hedge funds and other institutional investors own 68.32% of the company's stock.

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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