PayPal (NASDAQ:PYPL) Shares Up 2.8% - Here's Why

Key Points

• PayPal's share price rose by 2.8% to $69.84 with a trading volume of 3,740,348 shares, significantly lower than its average volume of 11,192,258 shares.
• Analysts have mixed ratings for PayPal, with a consensus rating of "Hold" and a target price of $85.00, while some firms like Macquarie set targets as high as $95.00.
• The company reported strong earnings with an EPS of $1.40, surpassing estimates and showing growth from last year's results, bolstered by a revenue of $8.29 billion.

Shares of PayPal Holdings, Inc. (NASDAQ:PYPL - Get Free Report) were up 2.8% during trading on Wednesday . The company traded as high as $70.12 and last traded at $69.84. Approximately 3,740,348 shares changed hands during mid-day trading, a decline of 67% from the average daily volume of 11,192,258 shares. The stock had previously closed at $67.97.

Wall Street Analysts Forecast Growth

A number of analysts recently commented on PYPL shares. Compass Point started coverage on PayPal in a research report on Wednesday, April 23rd. They issued a "sell" rating and a $56.00 price objective for the company. Robert W. Baird lifted their price objective on PayPal from $78.00 to $79.00 and gave the stock an "outperform" rating in a research report on Wednesday, April 30th. Wall Street Zen upgraded PayPal from a "hold" rating to a "buy" rating in a research report on Saturday, August 2nd. JMP Securities lowered their price objective on PayPal from $110.00 to $100.00 and set a "market outperform" rating for the company in a research report on Wednesday, July 30th. Finally, Morgan Stanley reiterated a "positive" rating 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 assigned a hold rating and eighteen have given a buy rating to the stock. According to data from MarketBeat, the company currently has an average rating of "Hold" and an average price target of $85.00.

PayPal Price Performance

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 has a fifty day moving average price of $72.70 and a two-hundred day moving average price of $71.21. The firm has a market cap of $65.89 billion, a P/E ratio of 14.74, a PEG ratio of 1.05 and a beta of 1.42.

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

Insider Buying and Selling at PayPal

In other PayPal news, insider Suzan Kereere sold 4,162 shares of the business's stock in a transaction dated Friday, June 6th. The shares were sold at an average price of $73.24, for a total transaction of $304,824.88. Following the sale, the insider directly owned 48,483 shares of the company's stock, valued at $3,550,894.92. The trade was a 7.91% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this link. Also, EVP Diego Scotti sold 3,838 shares of the business's stock in a transaction dated Thursday, July 31st. The stock was sold at an average price of $69.12, for a total transaction of $265,282.56. Following the sale, the executive vice president directly owned 16,989 shares in the company, valued at $1,174,279.68. This trade represents a 18.43% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 22,736 shares of company stock valued at $1,620,835. Corporate insiders own 0.08% of the company's stock.

Institutional Investors Weigh In On PayPal

Institutional investors and hedge funds have recently made changes to their positions in the stock. Mpwm Advisory Solutions LLC bought a new stake in shares of PayPal during the 4th quarter worth approximately $25,000. Hilltop National Bank bought a new stake in shares of PayPal during the 2nd quarter worth approximately $27,000. MUFG Securities EMEA plc raised its stake in shares of PayPal by 100.4% during the 2nd quarter. MUFG Securities EMEA plc now owns 385 shares of the credit services provider's stock worth $29,000 after purchasing an additional 87,524 shares in the last quarter. Bernard Wealth Management Corp. acquired a new position in shares of PayPal during the 4th quarter worth approximately $34,000. Finally, Pinney & Scofield Inc. acquired a new position in shares of PayPal during the 4th quarter worth approximately $35,000. 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.