PayPal (NASDAQ:PYPL) Stock Price Up 5% on Analyst Upgrade

Key Points

• Shares rose about 5% after BNP Paribas Exane raised its price target to $43.50 while keeping a neutral rating; PYPL traded as high as $47.88 on the move.
• Despite the bump, the consensus remains a Hold with a $56.72 average price target and a mixed analyst split of 8 Buys, 31 Holds and 6 Sells.
• Potential headwinds include significant insider selling (87,608 shares over three months, insiders own 0.08%) and multiple securities‑class‑action notices that raise legal risk.

PayPal Holdings, Inc. (NASDAQ:PYPL - Get Free Report) shares rose 5% on Monday after BNP Paribas Exane raised their price target on the stock from $41.00 to $43.50. BNP Paribas Exane currently has a neutral rating on the stock. PayPal traded as high as $47.88 and last traded at $47.51. Approximately 15,016,336 shares changed hands during trading, a decline of 34% from the average daily volume of 22,870,162 shares. The stock had previously closed at $45.24.

Several other research firms also recently weighed in on PYPL. TD Cowen restated a "hold" rating on shares of PayPal in a report on Tuesday, February 3rd. Loop Capital assumed coverage on PayPal in a research note on Tuesday, March 31st. They issued a "hold" rating and a $46.00 price objective for the company. Royal Bank Of Canada lowered their price objective on PayPal from $91.00 to $59.00 and set an "outperform" rating for the company in a research note on Wednesday, February 4th. Mizuho set a $60.00 price objective on PayPal in a research note on Wednesday, February 4th. Finally, UBS Group reissued a "neutral" rating and issued a $44.00 price objective on shares of PayPal in a research note on Wednesday, February 4th. Eight analysts have rated the stock with a Buy rating, thirty-one have issued a Hold rating and six have given a Sell rating to the stock. According to MarketBeat.com, the company presently has an average rating of "Hold" and a consensus price target of $56.72.

Insider Activity at PayPal

In related news, CAO Chris Natali sold 2,208 shares of the firm's stock in a transaction dated Tuesday, March 3rd. The shares were sold at an average price of $44.73, for a total transaction of $98,763.84. Following the completion of the sale, the chief accounting officer owned 1,140 shares in the company, valued at approximately $50,992.20. This trade represents a 65.95% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, insider Suzan Kereere sold 13,515 shares of the firm's stock in a transaction dated Tuesday, March 3rd. The stock was sold at an average price of $46.02, for a total transaction of $621,960.30. Following the sale, the insider owned 30,983 shares of the company's stock, valued at $1,425,837.66. This trade represents a 30.37% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 87,608 shares of company stock valued at $3,831,535. 0.08% of the stock is owned by insiders.

PayPal News Roundup

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: Payments/fintech rally is lifting the group and driving buying in PayPal — momentum traders cite a broad bid in the sector that has helped PYPL outperform peers intraday. PayPal Jumps 5%, Affirm Rockets 6%, SoFi Rises 4% in a Broad Payments and Fintech Rebound
• Positive Sentiment: Product expansion: PayPal is adding Brazil’s Pix instant‑payment option for SMBs, which can boost local merchant payment conversion and revenue exposure in a large emerging-payments market. PayPal Lets Small Businesses Tap Into Brazil’s Pix System
• Positive Sentiment: Analyst movement: at least one outlet flagged a raised price target (to $43.50), which can provide short‑term support among retail and some institutional investors. PayPal NASDAQ: PYPL Price Target Raised to $43.50
• Neutral Sentiment: Social and options chatter shows growing conviction on a technical breakout and increased near‑term call interest; this can amplify moves but is sentiment‑driven and volatile. QuiverQuant summarizes the online commentary and recent congressional/insider trading activity. PayPal Stock (PYPL) Opinions on Lawmaker's Purchase
• Negative Sentiment: Multiple securities‑class‑action notices and lead‑plaintiff deadlines (Apr. 20) have been filed/announced by several law firms alleging disclosure issues — an overhang that increases legal risk and potential settlement/expense uncertainty. Representative filing notices are being circulated by firms including Rosen and Levi & Korsinsky. PYPL DEADLINE: ROSEN, TOP RANKED GLOBAL COUNSEL, Encourages PayPal Holdings, Inc. Investors with Losses in Excess of $100K to Secure Counsel Before Important April 20 Deadline in Securities Class Action – PYPL Levi & Korsinsky, LLP: PYPL Disclosure Timeline Reveals Pattern of Alleged Harm
• Negative Sentiment: Institutional rebalancing and insider selling remain headwinds — recent filings show large institutional reductions by some managers and concentrated insider sales, which can pressure sentiment and limit sustained rallies. PayPal Stock (PYPL) Opinions on Lawmaker's Purchase

Institutional Trading of PayPal

Large investors have recently bought and sold shares of the company. National Pension Service grew its position in shares of PayPal by 1.8% in the third quarter. National Pension Service now owns 2,855,897 shares of the credit services provider's stock valued at $191,516,000 after purchasing an additional 51,268 shares in the last quarter. Merit Financial Group LLC grew its position in shares of PayPal by 15.5% in the third quarter. Merit Financial Group LLC now owns 164,901 shares of the credit services provider's stock valued at $11,058,000 after purchasing an additional 22,139 shares in the last quarter. Nordea Investment Management AB grew its position in shares of PayPal by 7.9% in the third quarter. Nordea Investment Management AB now owns 4,292,583 shares of the credit services provider's stock valued at $291,338,000 after purchasing an additional 313,180 shares in the last quarter. Rakuten Investment Management Inc. purchased a new position in shares of PayPal in the third quarter valued at $13,210,000. Finally, Ariose Capital Management Ltd grew its position in shares of PayPal by 347.0% in the third quarter. Ariose Capital Management Ltd now owns 193,100 shares of the credit services provider's stock valued at $12,949,000 after purchasing an additional 149,898 shares in the last quarter. 68.32% of the stock is owned by hedge funds and other institutional investors.

PayPal Stock Performance

The company has a market capitalization of $42.74 billion, a PE ratio of 8.78, a PEG ratio of 1.36 and a beta of 1.40. The company has a quick ratio of 1.29, a current ratio of 1.29 and a debt-to-equity ratio of 0.49. The company has a 50-day moving average price of $44.27 and a two-hundred day moving average price of $56.41.

PayPal (NASDAQ:PYPL - Get Free Report) last issued its quarterly earnings data on Tuesday, February 3rd. The credit services provider reported $1.23 EPS for the quarter, missing the consensus estimate of $1.29 by ($0.06). The firm had revenue of $8.68 billion for the quarter, compared to analysts' expectations of $8.82 billion. PayPal had a net margin of 15.77% and a return on equity of 25.42%. PayPal's revenue was up 4.0% on a year-over-year basis. During the same period in the prior year, the firm posted $1.19 EPS. Analysts predict that PayPal Holdings, Inc. will post 5.03 EPS for the current fiscal year.

PayPal Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, March 25th. Investors of record on Wednesday, March 4th were paid a dividend of $0.14 per share. The ex-dividend date of this dividend was Wednesday, March 4th. This represents a $0.56 annualized dividend and a yield of 1.2%. PayPal's payout ratio is currently 10.35%.

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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