PayPal (NASDAQ:PYPL) Trading 4.7% Higher - Here's Why

Key Points

• PayPal's stock price increased by 4.7%, reaching a high of $75.68, with a significant trading volume of approximately 31.6 million shares, which is a 177% increase from its average daily volume.
• Analysts have mixed views on PayPal's stock, with the consensus rating being "Hold" and a target price set at $84.50; however, Barclays and Macquarie expressed positive outlooks with "overweight" and "outperform" ratings respectively.
• PayPal exceeded earnings expectations with reported earnings per share of $1.40, surpassing the consensus estimate of $1.30, alongside a revenue of $8.29 billion against an estimate of $8.08 billion.

PayPal Holdings, Inc. (NASDAQ:PYPL - Get Free Report)'s stock price rose 4.7% during trading on Tuesday . The stock traded as high as $75.68 and last traded at $74.61. Approximately 31,602,214 shares were traded during mid-day trading, an increase of 177% from the average daily volume of 11,419,858 shares. The stock had previously closed at $71.29.

Analysts Set New Price Targets

Several equities analysts have recently issued reports on PYPL shares. Barclays reissued an "overweight" rating on shares of PayPal in a report on Tuesday, July 29th. BMO Capital Markets reissued a "market perform" rating on shares of PayPal in a report on Tuesday, July 29th. Macquarie reaffirmed an "outperform" rating and set a $95.00 price objective on shares of PayPal in a research note on Wednesday, July 30th. Wall Street Zen cut shares of PayPal from a "buy" rating to a "hold" rating in a research note on Saturday. Finally, Morgan Stanley restated a "positive" rating on shares of PayPal in a research report on Wednesday, July 30th. Seventeen research analysts have rated the stock with a Buy rating, fifteen have issued a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of "Hold" and a consensus target price of $84.50.

PayPal Trading Up 4.7%

The firm has a market cap of $71.28 billion, a price-to-earnings ratio of 15.94, a price-to-earnings-growth ratio of 1.07 and a beta of 1.44. The company's 50-day moving average price is $68.54 and its 200-day moving average price is $69.31. The company has a quick ratio of 1.33, a current ratio of 1.33 and a debt-to-equity ratio of 0.56.

PayPal (NASDAQ:PYPL - Get Free Report) last released its quarterly earnings results on Tuesday, July 29th. The credit services provider reported $1.40 earnings per share for the quarter, topping 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 during the quarter, compared to the consensus estimate of $8.08 billion. During the same quarter in the prior year, the firm earned $1.19 EPS. PayPal has set its Q3 2025 guidance at 1.180-1.220 EPS. FY 2025 guidance at 5.150-5.300 EPS. Equities analysts expect that PayPal Holdings, Inc. will post 5.03 EPS for the current fiscal year.

Insider Activity at PayPal

In other news, 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 value of $492,523.70. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP Diego Scotti sold 3,838 shares of the stock in a transaction dated Thursday, July 31st. The shares were sold at an average price of $69.12, for a total transaction of $265,282.56. Following the completion of the sale, the executive vice president owned 16,989 shares of the company's stock, valued at approximately $1,174,279.68. The trade was a 18.43% decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders sold 15,102 shares of company stock valued at $1,046,607. 0.08% of the stock is owned by insiders.

Hedge Funds Weigh In On PayPal

Institutional investors have recently added to or reduced their stakes in the stock. ST Germain D J Co. Inc. boosted its stake in PayPal by 51.8% during the third quarter. ST Germain D J Co. Inc. now owns 1,026 shares of the credit services provider's stock worth $69,000 after buying an additional 350 shares during the last quarter. Sanders Morris Harris LLC purchased a new stake in shares of PayPal in the third quarter valued at about $808,000. Moody National Bank Trust Division grew its holdings in shares of PayPal by 6.8% in the third quarter. Moody National Bank Trust Division now owns 16,736 shares of the credit services provider's stock valued at $1,122,000 after purchasing an additional 1,072 shares during the period. Gradient Investments LLC increased its position in PayPal by 6.1% during the third quarter. Gradient Investments LLC now owns 343,973 shares of the credit services provider's stock worth $23,067,000 after purchasing an additional 19,755 shares during the last quarter. Finally, AssuredPartners Investment Advisors LLC raised its stake in PayPal by 31.5% during the third quarter. AssuredPartners Investment Advisors LLC now owns 4,999 shares of the credit services provider's stock worth $335,000 after purchasing an additional 1,198 shares during the period. Hedge funds and other institutional investors own 68.32% of the company's stock.

About PayPal

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.

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