PayPal (NASDAQ:PYPL) Trading Up 3.2% - Here's What Happened

Key Points

• PayPal shares rose 3.2% to about $59.78 amid reports that the board rejected a $60.50-per-share takeover offer, reportedly from Stripe, indicating management believes the company’s long-term value is higher.
• PayPal’s latest quarterly results beat expectations, with revenue of $8.68 billion and adjusted EPS of $1.38, while revenue increased 4.8% year over year. Management also raised its 2026 outlook and is targeting improvements in checkout, Venmo monetization and Braintree profitability.
• Despite analyst support and the takeover speculation, the consensus rating remains “Hold”, with 34 Holds, nine Buys and four Sells and an average price target of $55.72.

PayPal Holdings, Inc. (NASDAQ:PYPL - Get Free Report) traded up 3.2% during mid-day trading on Thursday . The company traded as high as $59.79 and last traded at $59.78. 10,725,090 shares changed hands during mid-day trading, a decline of 44% from the average daily volume of 19,283,207 shares. The stock had previously closed at $57.93.

Trending Headlines about PayPal

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: PayPal’s board reportedly rejected a $60.50-per-share bid, believed to be from Stripe, suggesting management sees greater value in its long-term prospects. The offer has also reinforced the view that PayPal may be undervalued following its multiyear decline. PayPal to Stripe: The Offer Is Too Low
• Positive Sentiment: Recent quarterly results exceeded expectations, with revenue of $8.68 billion and non-GAAP earnings of $1.38 per share. PayPal also raised its 2026 outlook, while management highlighted efforts to improve checkout, monetize Venmo and restore profitable growth at Braintree. PayPal Acquisition Interest Is a Confirmation of How Undervalued This Resilient Company Is
• Positive Sentiment: An analyst upgrade and Cantor Fitzgerald’s increased $60 price target are providing additional support for PYPL. PayPal Trading Up After Analyst Upgrade
• Positive Sentiment: PayPal plans to establish revenue targets for its three primary business units, potentially improving accountability and giving investors clearer milestones for the turnaround. PayPal Sets First-Ever Revenue Targets

Analysts Set New Price Targets

Several analysts have issued reports on PYPL shares. Morgan Stanley set a $45.00 price target on shares of PayPal in a report on Wednesday, July 29th. William Blair restated a "market perform" rating on shares of PayPal in a report on Wednesday, July 15th. Zacks Research raised PayPal from a "strong sell" rating to a "hold" rating in a report on Friday, April 17th. Canaccord Genuity Group restated a "hold" rating and set a $55.00 price objective on shares of PayPal in a research report on Wednesday, July 29th. Finally, Piper Sandler decreased their price target on shares of PayPal from $46.00 to $42.00 and set a "neutral" rating on the stock in a research note on Monday, June 29th. Nine analysts have rated the stock with a Buy rating, thirty-four have given a Hold rating and four have assigned a Sell rating to the company's stock. According to data from MarketBeat, the company currently has a consensus rating of "Hold" and a consensus price target of $55.72.

PayPal Price Performance

The stock has a market cap of $51.14 billion, a P/E ratio of 11.30, a PEG ratio of 1.43 and a beta of 1.30. The company has a 50 day simple moving average of $47.88 and a 200 day simple moving average of $47.05. The company has a current ratio of 1.29, a quick ratio of 1.29 and a debt-to-equity ratio of 0.55.

PayPal (NASDAQ:PYPL - Get Free Report) last posted its quarterly earnings results on Tuesday, July 28th. The credit services provider reported $1.38 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.28 by $0.10. PayPal had a net margin of 14.36% and a return on equity of 24.39%. The firm had revenue of $8.68 billion for the quarter, compared to analyst estimates of $8.47 billion. During the same period in the prior year, the firm posted $1.40 earnings per share. The company's quarterly revenue was up 4.8% compared to the same quarter last year. Sell-side analysts forecast that PayPal Holdings, Inc. will post 5.36 earnings per share for the current fiscal year.

PayPal Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Friday, September 25th. Stockholders of record on Friday, September 4th will be paid a dividend of $0.14 per share. This represents a $0.56 dividend on an annualized basis and a dividend yield of 0.9%. The ex-dividend date is Friday, September 4th. PayPal's dividend payout ratio (DPR) is currently 10.59%.

Insider Buying and Selling

In related news, CAO Chris Natali sold 1,337 shares of the company's stock in a transaction dated Wednesday, July 29th. The shares were sold at an average price of $58.10, for a total value of $77,679.70. Following the transaction, the chief accounting officer owned 2,216 shares in the company, valued at approximately $128,749.60. This represents a 37.63% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Suzan Kereere sold 3,379 shares of the company's stock in a transaction that occurred on Wednesday, June 3rd. The shares were sold at an average price of $42.79, for a total value of $144,587.41. Following the completion of the transaction, the insider directly owned 30,983 shares in the company, valued at $1,325,762.57. The trade was a 9.83% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 10,612 shares of company stock valued at $484,534. Company insiders own 0.63% of the company's stock.

Institutional Trading of PayPal

A number of institutional investors have recently bought and sold shares of PYPL. Vanguard Group Inc. grew its position in PayPal by 6.5% during the fourth quarter. Vanguard Group Inc. now owns 90,376,927 shares of the credit services provider's stock worth $5,276,205,000 after buying an additional 5,534,462 shares in the last quarter. Bank of America Corp DE raised its holdings in PayPal by 67.9% in the 1st quarter. Bank of America Corp DE now owns 25,614,720 shares of the credit services provider's stock valued at $1,158,554,000 after acquiring an additional 10,356,256 shares in the last quarter. Norges Bank bought a new stake in shares of PayPal during the 4th quarter valued at $949,758,000. Amundi grew its holdings in shares of PayPal by 227.6% during the 1st quarter. Amundi now owns 13,804,208 shares of the credit services provider's stock worth $624,364,000 after purchasing an additional 9,590,488 shares in the last quarter. Finally, Invesco Ltd. grew its holdings in shares of PayPal by 9.7% during the 4th quarter. Invesco Ltd. now owns 12,215,792 shares of the credit services provider's stock worth $713,158,000 after purchasing an additional 1,083,843 shares in the last quarter. 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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