PayPal (NASDAQ:PYPL) Shares Up 1.9% - Here's Why

Key Points

• PayPal shares rose 1.9%, trading at $69.11, despite a 72% decline in average trading volume compared to previous sessions.
• Analysts have mixed views on PayPal, with price targets ranging from $65.00 to $100.00, reflecting a consensus rating of "Moderate Buy" and a target price of $84.57.
• Insider trading activity included the sale of 22,736 shares by executives in the last quarter, indicating a decrease in their holdings amid overall market fluctuations.

Shares of PayPal Holdings, Inc. (NASDAQ:PYPL - Get Free Report) shot up 1.9% during mid-day trading on Wednesday . The company traded as high as $68.95 and last traded at $69.11. 3,085,731 shares were traded during trading, a decline of 72% from the average session volume of 11,218,177 shares. The stock had previously closed at $67.83.

Analyst Upgrades and Downgrades

PYPL has been the subject of several recent research reports. Barclays reissued an "overweight" rating on shares of PayPal in a research report on Tuesday, July 29th. UBS Group dropped their target price on PayPal from $88.00 to $75.00 and set a "neutral" rating on the stock in a report on Wednesday, April 30th. Morgan Stanley reaffirmed a "positive" rating on shares of PayPal in a research report on Wednesday, July 30th. Seaport Res Ptn raised shares of PayPal from a "strong sell" rating to a "hold" rating in a report on Monday, July 14th. Finally, Macquarie reissued an "outperform" rating and issued a $95.00 price objective on shares of PayPal in a research report on Wednesday, July 30th. Two research analysts have rated the stock with a sell rating, fourteen have given a hold rating, nineteen have assigned a buy rating and one has given a strong buy rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $84.57.

PayPal Trading Down 2.2%

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 business has a 50-day moving average of $72.99 and a 200-day moving average of $71.96. The stock has a market cap of $64.83 billion, a price-to-earnings ratio of 14.48, a PEG ratio of 1.04 and a beta of 1.42.

PayPal (NASDAQ:PYPL - Get Free Report) last issued its quarterly earnings data on Tuesday, July 29th. The credit services provider reported $1.40 earnings per share 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 firm had revenue of $8.29 billion for the quarter, compared to analyst estimates of $8.08 billion. During the same quarter last year, the firm earned $1.19 earnings per share. As a group, research analysts forecast that PayPal Holdings, Inc. will post 5.03 earnings per share for the current year.

Insider Buying and Selling

In related news, insider Suzan Kereere sold 4,162 shares of the business's stock in a transaction dated Friday, June 6th. The stock was sold at an average price of $73.24, for a total transaction of $304,824.88. Following the completion of the transaction, the insider owned 48,483 shares of the company's stock, valued at approximately $3,550,894.92. The trade was a 7.91% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, EVP Diego Scotti sold 3,839 shares of the firm's stock in a transaction on Friday, June 6th. The stock was sold at an average price of $73.24, for a total transaction of $281,168.36. Following the completion of the sale, the executive vice president owned 16,989 shares in the company, valued at approximately $1,244,274.36. The trade was a 18.43% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 22,736 shares of company stock valued at $1,620,835 over the last 90 days. 0.08% of the stock is currently owned by insiders.

Institutional Investors Weigh In On PayPal

A number of institutional investors have recently bought and sold shares of the business. Vanguard Group Inc. lifted its stake in shares of PayPal by 0.3% during the first quarter. Vanguard Group Inc. now owns 86,221,849 shares of the credit services provider's stock valued at $5,625,976,000 after acquiring an additional 276,339 shares during the period. Capital Research Global Investors boosted its stake in shares of PayPal by 108.2% during the 4th quarter. Capital Research Global Investors now owns 17,924,106 shares of the credit services provider's stock worth $1,529,823,000 after buying an additional 9,313,783 shares during the last quarter. Deutsche Bank AG grew its stake in shares of PayPal by 19.1% in the first quarter. Deutsche Bank AG now owns 11,238,218 shares of the credit services provider's stock valued at $733,294,000 after buying an additional 1,798,330 shares in the last quarter. Northern Trust Corp raised its stake in PayPal by 19.0% in the fourth quarter. Northern Trust Corp now owns 10,462,251 shares of the credit services provider's stock valued at $892,953,000 after buying an additional 1,669,908 shares during the period. Finally, Invesco Ltd. raised its holdings in PayPal by 14.9% in the 1st quarter. Invesco Ltd. now owns 9,516,070 shares of the credit services provider's stock valued at $620,924,000 after acquiring an additional 1,232,155 shares during the period. Institutional investors and hedge funds 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.