PayPal (NASDAQ:PYPL) Trading Down 1.7% - Here's What Happened

Key Points

• PayPal's stock price dropped by 1.7% to $66.74, with recent trading volume down 3% from the average.
• Analysts have mixed ratings, with a consensus of "Hold" and an average price target of $84.50, indicating potential growth despite the recent decline.
• Institutional ownership stands at 68.32%, with significant stakes acquired by firms like Vanguard Group and Norges Bank in recent quarters.

PayPal Holdings, Inc. (NASDAQ:PYPL - Get Free Report)'s share price dropped 1.7% on Thursday . The company traded as low as $66.20 and last traded at $66.74. Approximately 10,748,330 shares were traded during mid-day trading, a decline of 3% from the average daily volume of 11,103,870 shares. The stock had previously closed at $67.86.

Wall Street Analysts Forecast Growth

PYPL has been the subject of a number of research reports. Truist Financial initiated coverage on shares of PayPal in a report on Monday, June 2nd. They issued a "sell" rating and a $68.00 price target for the company. Piper Sandler set a $74.00 price objective on shares of PayPal in a report on Tuesday, July 29th. Morgan Stanley reaffirmed a "positive" rating on shares of PayPal in a report on Wednesday, July 30th. Deutsche Bank Aktiengesellschaft set a $75.00 price objective on shares of PayPal in a report on Tuesday, July 29th. Finally, Rothschild & Co Redburn raised their price objective on shares of PayPal from $66.00 to $70.00 and gave the stock a "neutral" rating in a report on Tuesday, September 16th. Seventeen equities research analysts have rated the stock with a Buy rating, fifteen have issued a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of "Hold" and an average price target of $84.50.

PayPal Stock Down 1.7%

The firm has a market cap of $63.76 billion, a price-to-earnings ratio of 14.26, a PEG ratio of 1.04 and a beta of 1.43. The company has a debt-to-equity ratio of 0.56, a quick ratio of 1.33 and a current ratio of 1.33. The business's 50-day moving average is $69.79 and its 200-day moving average is $69.33.

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 for the quarter, beating the consensus estimate of $1.30 by $0.10. The firm had revenue of $8.29 billion during the quarter, compared to analysts' expectations of $8.08 billion. PayPal had a net margin of 14.49% and a return on equity of 25.35%. During the same quarter last year, the company posted $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. On average, equities analysts predict that PayPal Holdings, Inc. will post 5.03 EPS for the current year.

Insider Transactions at PayPal

In related news, insider Suzan Kereere sold 4,162 shares of PayPal stock in a transaction that occurred on Tuesday, August 19th. The shares were sold at an average price of $69.39, for a total transaction of $288,801.18. Following the transaction, the insider owned 48,483 shares of the company's stock, valued at $3,364,235.37. This trade represents a 7.91% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP Diego Scotti sold 3,838 shares of the business's stock in a transaction that occurred on Thursday, July 31st. The shares were sold at an average price of $69.12, for a total transaction of $265,282.56. Following the transaction, the executive vice president owned 16,989 shares of the company's stock, valued at approximately $1,174,279.68. This represents a 18.43% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 15,102 shares of company stock worth $1,046,607 in the last quarter. 0.08% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of the stock. Vanguard Group Inc. lifted its stake in PayPal by 0.3% in 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 buying an additional 276,339 shares in the last quarter. Norges Bank bought a new stake in shares of PayPal in the second quarter worth $921,570,000. Artisan Partners Limited Partnership lifted its position in shares of PayPal by 1.6% in the second quarter. Artisan Partners Limited Partnership now owns 11,992,031 shares of the credit services provider's stock worth $891,248,000 after purchasing an additional 184,014 shares in the last quarter. Deutsche Bank AG lifted its position 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 worth $733,294,000 after purchasing an additional 1,798,330 shares in the last quarter. Finally, Invesco Ltd. lifted its position in shares of PayPal by 5.5% in the second quarter. Invesco Ltd. now owns 10,038,584 shares of the credit services provider's stock worth $746,068,000 after purchasing an additional 522,514 shares in the last quarter. 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.

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