PayPal (NASDAQ:PYPL) Trading Down 1.8% - Here's What Happened

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)'s share price dropped 1.8% during trading on Wednesday . The company traded as low as $66.72 and last traded at $66.44. Approximately 3,157,444 shares were traded 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.

Analyst Ratings Changes

Several analysts have issued reports on PYPL shares. Morgan Stanley reissued a "positive" rating on shares of PayPal in a report on Wednesday, July 30th. Canaccord Genuity Group reiterated a "buy" rating and set a $96.00 price objective on shares of PayPal in a research note on Wednesday, July 30th. Deutsche Bank Aktiengesellschaft set a $75.00 target price on shares of PayPal in a research note on Tuesday, July 29th. Citigroup reiterated a "buy" rating on shares of PayPal in a research report on Tuesday, July 29th. Finally, JMP Securities decreased their price objective on shares of PayPal from $110.00 to $100.00 and set a "market outperform" rating on the stock in a research report on Wednesday, July 30th. Seventeen investment analysts have rated the stock with a Buy rating, fourteen have assigned a Hold rating and two have given a Sell rating to the company. According to MarketBeat, the company presently has an average rating of "Hold" and a consensus target price of $85.00.

PayPal Price Performance

The firm has a market cap of $62.48 billion, a P/E ratio of 13.96, a P/E/G ratio of 1.06 and a beta of 1.43. The firm's fifty day simple moving average is $71.39 and its 200 day simple moving average is $69.58. The company has a debt-to-equity ratio of 0.56, a quick ratio of 1.33 and a current ratio of 1.33.

PayPal (NASDAQ:PYPL - Get Free Report) last posted its earnings results on Tuesday, July 29th. The credit services provider reported $1.40 EPS for the quarter, topping analysts' consensus estimates of $1.30 by $0.10. The company had revenue of $8.29 billion for the quarter, compared to the consensus estimate of $8.08 billion. PayPal had a return on equity of 25.35% and a net margin of 14.49%.During the same period in the previous year, the business earned $1.19 earnings per share. PayPal has set its Q3 2025 guidance at 1.180-1.220 EPS. FY 2025 guidance at 5.150-5.300 EPS. As a group, analysts forecast that PayPal Holdings, Inc. will post 5.03 earnings per share for the current year.

Insider Buying and Selling

In other PayPal news, insider Suzan Kereere sold 4,162 shares of PayPal stock in a transaction on Tuesday, August 19th. The shares were sold at an average price of $69.39, for a total value of $288,801.18. Following the completion of the transaction, the insider directly 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 sale was disclosed in a filing with the SEC, which is available at this link. Also, EVP Diego Scotti sold 3,838 shares of the company'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 owned 16,989 shares in the company, valued at $1,174,279.68. This 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 have sold 15,102 shares of company stock worth $1,046,607. Insiders own 0.08% of the company's stock.

Institutional Investors Weigh In On PayPal

Several large investors have recently added to or reduced their stakes in the stock. Security National Bank of SO Dak lifted its stake in shares of PayPal by 1.1% in the 4th quarter. Security National Bank of SO Dak now owns 12,191 shares of the credit services provider's stock valued at $1,041,000 after purchasing an additional 137 shares during the last quarter. Gordian Capital Singapore Pte Ltd lifted its position in PayPal by 41.2% in the first quarter. Gordian Capital Singapore Pte Ltd now owns 473 shares of the credit services provider's stock worth $31,000 after buying an additional 138 shares during the last quarter. GSB Wealth Management LLC boosted its stake in PayPal by 1.7% during the second quarter. GSB Wealth Management LLC now owns 8,160 shares of the credit services provider's stock worth $606,000 after buying an additional 140 shares during the period. CreativeOne Wealth LLC increased its position in PayPal by 1.5% during the first quarter. CreativeOne Wealth LLC now owns 9,387 shares of the credit services provider's stock valued at $613,000 after acquiring an additional 142 shares during the last quarter. Finally, Redwood Financial Network Corp raised its stake in shares of PayPal by 4.8% in the fourth quarter. Redwood Financial Network Corp now owns 3,208 shares of the credit services provider's stock valued at $274,000 after acquiring an additional 147 shares during the period. 68.32% of the stock is owned by institutional investors.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.