PayPal (NASDAQ:PYPL) Trading Up 1.2% - What's Next?

Key Points

• PayPal was added to Mastercard’s new crypto partner program, a move that supports its PYUSD/stablecoin and payments roadmap and could help revenue diversification if those partnerships scale.
• There is rising investor risk from multiple securities class-action filings (alleging misleading guidance) plus a recent CEO departure, weak February results and cautious guidance that have driven skepticism about execution.
• Shares trade near $44.90 with a low P/E of 8.3 and a consensus analyst target of $59.03 (average rating: Hold), indicating some view the stock as undervalued but many remain cautious pending operational improvement.

PayPal Holdings, Inc. (NASDAQ:PYPL - Get Free Report) shares shot up 1.2% on Friday . The company traded as high as $45.25 and last traded at $44.90. 13,937,828 shares traded hands during trading, a decline of 45% from the average session volume of 25,376,176 shares. The stock had previously closed at $44.36.

Trending Headlines about PayPal

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: PayPal has been included in Mastercard’s new crypto partner program alongside firms like Binance and Ripple, which supports its PYUSD/stablecoin and payments roadmap and could help revenue diversification if partnerships scale. Binance, Ripple, PayPal join Mastercard's 85+ partner crypto initiative
• Positive Sentiment: Valuation looks attractive to some investors and analysts: recent coverage highlights a low P/E and price targets above current levels, which can attract value buyers if execution stabilizes. Why PayPal’s Rally Faded—And What Could Restart It
• Neutral Sentiment: Macro and crypto market moves are creating mixed flows: regulatory alignment between the CFTC and SEC and episodic crypto volatility are shaping sentiment for payments/crypto plays like PayPal. This is a backdrop rather than an immediate company-specific catalyst. Crypto Currents: CFTC affirms crypto oversight alignment with SEC
• Negative Sentiment: Multiple securities class-action filings and numerous law‑firm alerts allege PayPal misled investors about growth and guidance (class period cited Feb 25, 2025–Feb 2, 2026). Firms are soliciting lead‑plaintiff motions with an April 20, 2026 deadline — this litigation wave increases legal risk, potential costs, and investor uncertainty. PayPal Holdings (PYPL) Faces Securities Class Action Amid $9 Billion Market Cap Wipeout, CEO Departure -- Hagens Berman
• Negative Sentiment: Competition and management turnover remain immediate execution risks: coverage notes weak Feb results, cautious guidance, and the CEO departure — all drivers behind the recent selloff and continued skepticism until clear operational improvement is shown. Why PayPal’s Rally Faded—And What Could Restart It
• Negative Sentiment: High-profile commentary suggests competitive pressure from other payment/fintech platforms and actions by industry figures (e.g., Elon Musk) could further compress PayPal’s growth in key consumer/payment corridors. Elon Musk just made things uncomfortable for PayPal and Cash App

Analyst Ratings Changes

A number of analysts have commented on PYPL shares. Sanford C. Bernstein reaffirmed a "market perform" rating on shares of PayPal in a research report on Tuesday, February 24th. Zacks Research downgraded shares of PayPal from a "hold" rating to a "strong sell" rating in a report on Wednesday, February 11th. Susquehanna decreased their price objective on shares of PayPal from $90.00 to $63.00 and set a "positive" rating for the company in a research note on Wednesday, February 4th. Needham & Company LLC reaffirmed a "hold" rating on shares of PayPal in a report on Tuesday, February 3rd. Finally, BTIG Research reissued a "neutral" rating on shares of PayPal in a report on Tuesday, February 3rd. Eight analysts have rated the stock with a Buy rating, thirty-one have issued a Hold rating and six have assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus target price of $59.03.

PayPal Stock Performance

The business's 50-day simple moving average is $49.18 and its two-hundred day simple moving average is $59.99. The firm has a market cap of $41.34 billion, a price-to-earnings ratio of 8.30, a P/E/G ratio of 1.36 and a beta of 1.43. The company has a quick ratio of 1.29, a current ratio of 1.29 and a debt-to-equity ratio of 0.49.

PayPal (NASDAQ:PYPL - Get Free Report) last posted its earnings results on Tuesday, February 3rd. The credit services provider reported $1.23 EPS for the quarter, missing analysts' consensus estimates of $1.29 by ($0.06). The business had revenue of $8.68 billion for the quarter, compared to analyst estimates of $8.82 billion. PayPal had a net margin of 15.77% and a return on equity of 25.42%. PayPal's revenue was up 4.0% on a year-over-year basis. During the same quarter last year, the business earned $1.19 earnings per share. As a group, sell-side analysts expect that PayPal Holdings, Inc. will post 5.03 earnings per share for the current fiscal year.

PayPal Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, March 25th. Shareholders of record on Wednesday, March 4th will be issued a $0.14 dividend. This represents a $0.56 annualized dividend and a yield of 1.2%. The ex-dividend date of this dividend is Wednesday, March 4th. PayPal's dividend payout ratio (DPR) is presently 10.35%.

Insider Activity

In related news, CAO Chris Natali sold 2,208 shares of the business's stock in a transaction on Tuesday, March 3rd. The shares were sold at an average price of $44.73, for a total value of $98,763.84. Following the completion of the sale, the chief accounting officer owned 1,140 shares of the company's stock, valued at approximately $50,992.20. The trade was a 65.95% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP Frank Keller sold 29,581 shares of the company's stock in a transaction on Tuesday, March 3rd. The stock was sold at an average price of $46.02, for a total transaction of $1,361,317.62. Following the transaction, the executive vice president owned 51,567 shares of the company's stock, valued at $2,373,113.34. This represents a 36.45% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 87,608 shares of company stock worth $3,831,535 over the last three months. 0.08% of the stock is currently owned by corporate insiders.

Institutional Trading of PayPal

A number of institutional investors and hedge funds have recently modified their holdings of PYPL. Bard Associates Inc. acquired a new stake in PayPal in the 4th quarter worth about $25,000. Caitong International Asset Management Co. Ltd raised its holdings in shares of PayPal by 15,233.3% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 460 shares of the credit services provider's stock valued at $27,000 after acquiring an additional 457 shares during the last quarter. Safe Harbor Fiduciary LLC purchased a new position in shares of PayPal in the fourth quarter valued at approximately $28,000. Cloud Capital Management LLC acquired a new stake in shares of PayPal in the third quarter worth approximately $30,000. Finally, Kelleher Financial Advisors acquired a new stake in shares of PayPal in the third quarter worth approximately $30,000. Hedge funds and other institutional investors own 68.32% of the company's stock.

About PayPal

PayPal Holdings, Inc operates a global digital payments platform that enables consumers and merchants to send and receive payments online, on mobile devices and at the point of sale. The company provides a broad set of payment solutions, including a digital wallet, merchant payment processing, checkout services, invoicing and fraud-management tools. PayPal's platform is designed to support e-commerce, in-person retail and person-to-person transfers, targeting both individual consumers and businesses of varying sizes.

Key products and services in PayPal's portfolio include the PayPal wallet and checkout ecosystem, the Venmo peer-to-peer mobile app, Braintree's developer-focused payment gateway, Xoom for international money transfers, and PayPal Credit and buy-now-pay-later options.

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