PayPal (NASDAQ:PYPL) Trading Down 7.7% - What's Next?

Key Points

• PayPal's stock price dropped by 7.7% to $69.90 amid increased trading volume, reaching a low of $69.76 on Friday.
• Analysts maintain a mixed outlook on the stock, with 17 firms rating it as a Buy while 14 rated it as Hold, and an average target price of $84.66.
• PayPal reported a quarterly EPS of $1.40, exceeding expectations, and has provided guidance for Q3 2025 EPS between 1.180 and 1.220.

PayPal Holdings, Inc. (NASDAQ:PYPL - Get Free Report) traded down 7.7% during trading on Friday . The company traded as low as $69.76 and last traded at $69.90. 21,858,872 shares were traded during mid-day trading, an increase of 90% from the average session volume of 11,531,901 shares. The stock had previously closed at $75.75.

Analyst Ratings Changes

A number of research firms have recently issued reports on PYPL. Citigroup reiterated a "buy" rating on shares of PayPal in a research note on Tuesday, July 29th. Royal Bank Of Canada reaffirmed an "outperform" rating and set a $88.00 target price on shares of PayPal in a research report on Thursday, June 26th. Piper Sandler set a $74.00 target price on PayPal in a research report on Tuesday, July 29th. Deutsche Bank Aktiengesellschaft set a $75.00 price objective on PayPal in a research report on Tuesday, July 29th. Finally, Wall Street Zen downgraded PayPal from a "buy" rating to a "hold" rating in a research report on Saturday, October 4th. Seventeen analysts have rated the stock with a Buy rating, fourteen have issued a Hold rating and two have assigned a Sell rating to the company's stock. According to MarketBeat, the stock has a consensus rating of "Hold" and an average target price of $84.66.

PayPal Price Performance

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 stock has a market cap of $66.78 billion, a price-to-earnings ratio of 14.94, a P/E/G ratio of 1.17 and a beta of 1.44. The stock has a fifty day moving average of $68.87 and a 200 day moving average of $69.43.

PayPal (NASDAQ:PYPL - Get Free Report) last announced its quarterly earnings data on Tuesday, July 29th. The credit services provider reported $1.40 EPS for the quarter, beating the consensus estimate of $1.30 by $0.10. The business 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 period in the previous year, the business 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, analysts expect that PayPal Holdings, Inc. will post 5.03 EPS for the current fiscal year.

Insider Buying and Selling at PayPal

In related news, CAO Chris Natali sold 7,102 shares of the business's stock in a transaction on Thursday, July 31st. The shares were sold at an average price of $69.35, for a total value of $492,523.70. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Also, EVP Diego Scotti sold 3,838 shares of the business's stock in a transaction 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 completion of 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 ownership of the stock. The disclosure for this sale can be found here. Over 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 company insiders.

Hedge Funds Weigh In On PayPal

A number of large investors have recently bought and sold shares of the business. Gordian Capital Singapore Pte Ltd raised its holdings in shares of 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 acquiring an additional 138 shares during the last quarter. GSB Wealth Management LLC raised its stake in PayPal by 1.7% in the 2nd quarter. GSB Wealth Management LLC now owns 8,160 shares of the credit services provider's stock valued at $606,000 after purchasing an additional 140 shares during the last quarter. CreativeOne Wealth LLC raised its position in shares of PayPal by 1.5% in the first quarter. CreativeOne Wealth LLC now owns 9,387 shares of the credit services provider's stock valued at $613,000 after buying an additional 142 shares during the last quarter. Wedmont Private Capital raised its position in shares of PayPal by 1.6% in the third quarter. Wedmont Private Capital now owns 9,157 shares of the credit services provider's stock valued at $614,000 after buying an additional 142 shares during the last quarter. Finally, Pitti Group Wealth Management LLC raised its position in shares of PayPal by 1.5% in the second quarter. Pitti Group Wealth Management LLC now owns 10,233 shares of the credit services provider's stock valued at $761,000 after buying an additional 147 shares during the last quarter. Institutional investors and hedge funds 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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