PayPal (NASDAQ:PYPL) Stock Price Down 1.8% - What's Next?

Key Points

• PayPal's share price dropped 1.8% during trading, closing at $66.44, with trading volume significantly down at 3.15 million shares compared to the average of nearly 11 million.
• Analyst ratings are mixed, with 17 analysts recommending a Buy, 14 a Hold, and 2 a Sell, while the consensus target price stands at $85.00.
• PayPal reported earnings of $1.40 per share for the last quarter, exceeding estimates, and had a revenue of $8.29 billion compared to the expected $8.08 billion.

PayPal Holdings, Inc. (NASDAQ:PYPL - Get Free Report) dropped 1.8% during trading on Wednesday . The stock traded as low as $66.72 and last traded at $66.44. Approximately 3,157,444 shares traded hands during mid-day trading, a decline of 71% from the average daily volume of 10,966,104 shares. The stock had previously closed at $67.68.

Wall Street Analysts Forecast Growth

PYPL has been the subject of several research reports. Wall Street Zen upgraded shares of PayPal from a "hold" rating to a "buy" rating in a report on Saturday, August 2nd. Royal Bank Of Canada reiterated an "outperform" rating and issued a $88.00 price target on shares of PayPal in a research note on Thursday, June 26th. Piper Sandler set a $74.00 price target on shares of PayPal in a research note on Tuesday, July 29th. Macquarie reiterated an "outperform" rating and issued a $95.00 price target on shares of PayPal in a research note on Wednesday, July 30th. Finally, Canaccord Genuity Group reiterated a "buy" rating and issued a $96.00 price target on shares of PayPal in a research note on Wednesday, July 30th. Seventeen research analysts have rated the stock with a Buy rating, fourteen have assigned a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus price target of $85.00.

PayPal Stock Performance

The firm has a market capitalization of $63.91 billion, a P/E ratio of 14.29, a price-to-earnings-growth ratio of 1.04 and a beta of 1.43. 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 business's 50 day simple moving average is $70.81 and its two-hundred day simple moving average is $69.43.

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

Insider Activity

In other news, CAO Chris Natali sold 7,102 shares of the firm's stock in a transaction dated Thursday, July 31st. The shares were sold at an average price of $69.35, for a total transaction of $492,523.70. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, EVP Diego Scotti sold 3,838 shares of the firm's 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 sale, the executive vice president directly owned 16,989 shares in the company, 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. Insiders have sold a total of 15,102 shares of company stock valued at $1,046,607 in the last 90 days. 0.08% of the stock is currently owned by insiders.

Institutional Trading of PayPal

A number of institutional investors have recently made changes to their positions in the stock. Mpwm Advisory Solutions LLC purchased a new position in shares of PayPal in the fourth quarter worth approximately $25,000. Evermay Wealth Management LLC boosted its holdings in shares of PayPal by 726.0% in the first quarter. Evermay Wealth Management LLC now owns 413 shares of the credit services provider's stock worth $27,000 after buying an additional 363 shares during the last quarter. Hilltop National Bank purchased a new position in shares of PayPal in the second quarter worth approximately $27,000. Garde Capital Inc. purchased a new position in shares of PayPal in the first quarter worth approximately $28,000. Finally, Tsfg LLC boosted its holdings in shares of PayPal by 81.6% in the first quarter. Tsfg LLC now owns 445 shares of the credit services provider's stock worth $29,000 after buying an additional 200 shares during the last quarter. Hedge funds and other 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.