PayPal (NASDAQ:PYPL) Trading Down 3.8% - Should You Sell?

Key Points

• PayPal's stock price decreased by 3.8%, closing at $67.06, with a significant trading volume of over 21 million shares.
• Wall Street analysts have mixed ratings for PayPal, with a consensus "Hold" rating and an average target price of $84.50.
• Recent insider transactions include sales by executives, with total insider sales amounting to over $1 million in the last ninety days.

PayPal Holdings, Inc. (NASDAQ:PYPL - Get Free Report)'s share price was down 3.8% during trading on Tuesday . The stock traded as low as $66.85 and last traded at $67.06. Approximately 21,054,367 shares were traded during trading, an increase of 87% from the average daily volume of 11,236,644 shares. The stock had previously closed at $69.68.

Wall Street Analysts Forecast Growth

Several equities research analysts recently commented on PYPL shares. JMP Securities cut their target price on PayPal from $110.00 to $100.00 and set a "market outperform" rating on the stock in a research report on Wednesday, July 30th. Deutsche Bank Aktiengesellschaft set a $75.00 price target on PayPal in a report on Tuesday, July 29th. Royal Bank Of Canada reiterated an "outperform" rating and issued a $88.00 price target on shares of PayPal in a report on Thursday, June 26th. Truist Financial started coverage on PayPal in a report on Monday, June 2nd. They issued a "sell" rating and a $68.00 price target on the stock. Finally, Wall Street Zen upgraded PayPal from a "hold" rating to a "buy" rating in a report on Saturday, August 2nd. Seventeen analysts have rated the stock with a Buy rating, fifteen have given a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, PayPal currently has a consensus rating of "Hold" and an average target price of $84.50.

PayPal Stock Down 3.8%

The company has a debt-to-equity ratio of 0.56, a current ratio of 1.33 and a quick ratio of 1.33. The company has a market cap of $64.07 billion, a P/E ratio of 14.33, a price-to-earnings-growth ratio of 1.04 and a beta of 1.43. The stock has a fifty day moving average price of $69.41 and a two-hundred day moving average price of $69.35.

PayPal (NASDAQ:PYPL - Get Free Report) last issued its quarterly earnings results on Tuesday, July 29th. The credit services provider reported $1.40 EPS for the quarter, beating analysts' consensus estimates of $1.30 by $0.10. The company had revenue of $8.29 billion during 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 last year, the business posted $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. On average, research analysts expect that PayPal Holdings, Inc. will post 5.03 EPS for the current year.

Insiders Place Their Bets

In other PayPal news, CAO Chris Natali sold 7,102 shares of the firm's stock in a transaction on Thursday, July 31st. The stock was sold at an average price of $69.35, for a total value of $492,523.70. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP Diego Scotti sold 3,838 shares of the firm's stock in a transaction on Thursday, July 31st. The stock was sold at an average price of $69.12, for a total value of $265,282.56. Following the completion of the sale, the executive vice president directly owned 16,989 shares of the company's stock, 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. Insiders sold 15,102 shares of company stock valued at $1,046,607 over the last ninety days. 0.08% of the stock is currently owned by insiders.

Hedge Funds Weigh In On PayPal

Hedge funds have recently made changes to their positions in the stock. Evermay Wealth Management LLC grew its position 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 valued at $27,000 after purchasing an additional 363 shares in the last quarter. Hilltop National Bank purchased a new position in shares of PayPal in the second quarter valued at $27,000. Garde Capital Inc. purchased a new position in shares of PayPal in the first quarter valued at $28,000. Tsfg LLC grew its position in shares of PayPal by 81.6% in the first quarter. Tsfg LLC now owns 445 shares of the credit services provider's stock valued at $29,000 after purchasing an additional 200 shares in the last quarter. Finally, MUFG Securities EMEA plc grew its position in shares of PayPal by 100.4% in the second quarter. MUFG Securities EMEA plc now owns 385 shares of the credit services provider's stock valued at $29,000 after purchasing an additional 87,524 shares in the last quarter. 68.32% of the stock is currently owned by hedge funds and other 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.

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