PayPal (NASDAQ:PYPL) Trading Up 1.5% on Analyst Upgrade

Key Points

• Shares rose 1.5% to about $50.48 after Truist raised its price target from $39 to $45 but kept a Sell rating; trading volume was ~8.2M shares, down 62% from the average.
• Analyst coverage is mixed—7 Buys, 33 Holds and 5 Sells—with an overall average rating of Hold and an average price target of $56.55, reflecting split views on PayPal's valuation and upside.
• There has been heavy insider selling: insiders sold 87,608 shares over the past 90 days (including large sales by EVP Frank Keller and Suzan Kereere), leaving insiders with roughly 0.63% ownership, which may concern investors.

PayPal Holdings, Inc. (NASDAQ:PYPL - Get Free Report) shares were up 1.5% on Friday after Truist Financial raised their price target on the stock from $39.00 to $45.00. Truist Financial currently has a sell rating on the stock. PayPal traded as high as $50.59 and last traded at $50.48. Approximately 8,215,639 shares changed hands during trading, a decline of 62% from the average daily volume of 21,660,725 shares. The stock had previously closed at $49.75.

Several other research firms also recently weighed in on PYPL. Raymond James Financial restated a "market perform" rating on shares of PayPal in a research report on Monday, February 23rd. Loop Capital started coverage on shares of PayPal in a research report on Tuesday, March 31st. They set a "hold" rating and a $46.00 price target for the company. Stephens reduced their price target on shares of PayPal from $65.00 to $45.00 and set an "equal weight" rating for the company in a research report on Wednesday, February 4th. Royal Bank Of Canada reduced their price target on shares of PayPal from $91.00 to $59.00 and set an "outperform" rating for the company in a research report on Wednesday, February 4th. Finally, BMO Capital Markets started coverage on shares of PayPal in a research report on Tuesday. They set a "market perform" rating and a $52.00 price target for the company. Seven analysts have rated the stock with a Buy rating, thirty-three have issued a Hold rating and five have issued a Sell rating to the company's stock. According to data from MarketBeat.com, PayPal currently has an average rating of "Hold" and an average target price of $56.55.

Insider Activity at PayPal

In related news, EVP Frank Keller sold 29,581 shares of the stock in a transaction that occurred on Tuesday, March 3rd. The stock was sold at an average price of $46.02, for a total value of $1,361,317.62. Following the completion of the sale, the executive vice president owned 51,567 shares of the company's stock, valued at approximately $2,373,113.34. This trade represents a 36.45% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Suzan Kereere sold 13,515 shares of the stock in a transaction that occurred on Tuesday, March 3rd. The shares were sold at an average price of $46.02, for a total value of $621,960.30. Following the completion of the sale, the insider directly owned 30,983 shares of the company's stock, valued at approximately $1,425,837.66. This represents a 30.37% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 87,608 shares of company stock valued at $3,831,535. 0.63% of the stock is currently owned by insiders.

Key Stories Impacting PayPal

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: Record PYUSD adoption and merchant crypto tools — PayPal’s PYUSD stablecoin supply reportedly hit ~$4.3B and the firm is expanding Bitcoin payment options for U.S. merchants, a combination investors see as a new revenue avenue beyond core payments. Quiver Quantitative: PYPL Opinions on PayPal Beyond Event
• Positive Sentiment: New ad product could boost monetization — PayPal launched “Curated Ads” for connected TV and the open web to directly measure whether TV ads drive sales, expanding its growing advertising business and giving merchants measurable ROI. TipRanks: Curated Ads for CTV
• Positive Sentiment: Analyst support tied to partnerships — Bank of America boosting its target (reported after the NFL deal) and other firms nudging targets higher reflect optimism that recent deals and product launches can drive revenue recovery. CoinCentral: BofA raises target to $55
• Neutral Sentiment: Mixed analyst coverage and valuations — several recent write-ups compare PYPL to peers (e.g., MA) and debate value vs. growth merits; median analyst target sits near $52, underscoring a split view. Yahoo Finance: PYPL vs MA valuation piece
• Neutral Sentiment: BMO initiates coverage at Market Perform — another large shop taking a neutral stance, which can temper upside expectations until clearer execution. MSN: BMO initiates coverage
• Negative Sentiment: Heavy insider selling — Quiver Quant notes 23 insider open-market trades in the past six months, all sales and no buys, which investors often view as a red flag on near-term insider conviction. Quiver Quantitative: Insider trading summary
• Negative Sentiment: Large institutional reductions — multiple big managers (notably UBS AM and ClearBridge) trimmed positions materially in recent quarters, signaling continued portfolio rotation away from PYPL for some funds. Quiver Quantitative: Institutional holding changes
• Negative Sentiment: Contradictory analyst moves — Truist raised its target to $45 but retained a Sell rating (implying downside vs. some current levels), highlighting divergent views that can keep the stock volatile. Benzinga/The Fly: Truist target update

Institutional Investors Weigh In On PayPal

Several hedge funds and other institutional investors have recently made changes to their positions in PYPL. National Pension Service increased its holdings in shares of PayPal by 1.8% during the 3rd quarter. National Pension Service now owns 2,855,897 shares of the credit services provider's stock worth $191,516,000 after buying an additional 51,268 shares during the last quarter. Merit Financial Group LLC increased its holdings in shares of PayPal by 15.5% during the 3rd quarter. Merit Financial Group LLC now owns 164,901 shares of the credit services provider's stock worth $11,058,000 after buying an additional 22,139 shares during the last quarter. Nordea Investment Management AB increased its holdings in shares of PayPal by 7.9% during the 3rd quarter. Nordea Investment Management AB now owns 4,292,583 shares of the credit services provider's stock worth $291,338,000 after buying an additional 313,180 shares during the last quarter. Rakuten Investment Management Inc. acquired a new stake in shares of PayPal during the 3rd quarter worth approximately $13,210,000. Finally, Ariose Capital Management Ltd increased its holdings in PayPal by 347.0% in the 3rd quarter. Ariose Capital Management Ltd now owns 193,100 shares of the credit services provider's stock valued at $12,949,000 after purchasing an additional 149,898 shares during the last quarter. Institutional investors and hedge funds own 68.32% of the company's stock.

PayPal Price Performance

The company has a current ratio of 1.29, a quick ratio of 1.29 and a debt-to-equity ratio of 0.49. The company's fifty day moving average is $45.70 and its two-hundred day moving average is $55.44. The stock has a market cap of $45.42 billion, a price-to-earnings ratio of 9.33, a P/E/G ratio of 1.47 and a beta of 1.40.

PayPal (NASDAQ:PYPL - Get Free Report) last posted its earnings results on Tuesday, February 3rd. The credit services provider reported $1.23 earnings per share for the quarter, missing the consensus estimate of $1.29 by ($0.06). PayPal had a net margin of 15.77% and a return on equity of 25.42%. The company had revenue of $8.68 billion during the quarter, compared to analyst estimates of $8.82 billion. During the same quarter last year, the business posted $1.19 EPS. The firm's revenue for the quarter was up 4.0% on a year-over-year basis. As a group, research analysts predict that PayPal Holdings, Inc. will post 5.32 earnings per share for the current year.

PayPal Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Wednesday, March 25th. Investors of record on Wednesday, March 4th were issued a $0.14 dividend. This represents a $0.56 annualized dividend and a yield of 1.1%. The ex-dividend date was Wednesday, March 4th. PayPal's dividend payout ratio (DPR) is 10.35%.

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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