PayPal (NASDAQ:PYPL) Trading Up 3.4% - Should You Buy?

Key Points

• PayPal's stock rose 3.4% to trade at approximately $68.93, with a notable increase in trading volume of 19% compared to its average.
• Analysts are optimistic about PayPal, with 17 issuing a "Buy" rating and a consensus target price of $84.50.
• PayPal reported earnings of $1.40 per share, exceeding expectations, and anticipates further growth with Q3 2025 guidance set at 1.180-1.220 EPS.

PayPal Holdings, Inc. (NASDAQ:PYPL - Get Free Report) rose 3.4% during mid-day trading on Thursday . The stock traded as high as $68.95 and last traded at $68.93. Approximately 13,421,556 shares traded hands during trading, an increase of 19% from the average daily volume of 11,281,378 shares. The stock had previously closed at $66.66.

Analyst Upgrades and Downgrades

PYPL has been the subject of a number of recent analyst reports. Canaccord Genuity Group reiterated a "buy" rating and issued a $96.00 price target on shares of PayPal in a research report on Wednesday, July 30th. Barclays reissued an "overweight" rating on shares of PayPal in a report on Tuesday, July 29th. Morgan Stanley reissued a "positive" rating on shares of PayPal in a report on Wednesday, July 30th. Macquarie reissued an "outperform" rating and issued a $95.00 target price on shares of PayPal in a report on Wednesday, July 30th. Finally, BMO Capital Markets reissued a "market perform" rating on shares of PayPal in a report on Tuesday, July 29th. Seventeen investment analysts have rated the stock with a Buy rating, fourteen have assigned a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus target price of $84.50.

PayPal Trading Up 3.4%

The firm has a market capitalization of $65.85 billion, a PE ratio of 14.73, a price-to-earnings-growth ratio of 1.03 and a beta of 1.44. The company's 50-day simple moving average is $69.03 and its 200 day simple moving average is $69.31. The company has a quick ratio of 1.33, a current ratio of 1.33 and a debt-to-equity ratio of 0.56.

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. PayPal had a net margin of 14.49% and a return on equity of 25.35%. The firm had revenue of $8.29 billion during the quarter, compared to analyst estimates of $8.08 billion. During the same period last year, the firm 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. As a group, sell-side analysts expect that PayPal Holdings, Inc. will post 5.03 EPS for the current year.

Insider Activity at PayPal

In related news, insider Suzan Kereere sold 4,162 shares of the business's stock in a transaction dated Tuesday, August 19th. The shares were sold at an average price of $69.39, for a total value of $288,801.18. Following the sale, the insider directly owned 48,483 shares in the company, valued at approximately $3,364,235.37. The trade was a 7.91% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, EVP Diego Scotti sold 3,838 shares of the business's stock in a transaction dated Thursday, July 31st. The stock was sold at an average price of $69.12, for a total value of $265,282.56. Following the transaction, the executive vice president directly 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. In the last ninety days, insiders have sold 15,102 shares of company stock worth $1,046,607. Company insiders own 0.08% of the company's stock.

Institutional Investors Weigh In On PayPal

Hedge funds and other institutional investors have recently bought and sold shares of the business. Hilltop National Bank purchased a new stake in PayPal during the 2nd quarter worth about $27,000. MUFG Securities EMEA plc increased its position in PayPal by 100.4% during the 2nd quarter. MUFG Securities EMEA plc now owns 385 shares of the credit services provider's stock worth $29,000 after purchasing an additional 87,524 shares in the last quarter. Evermay Wealth Management LLC increased its position in PayPal by 726.0% during the 1st quarter. Evermay Wealth Management LLC now owns 413 shares of the credit services provider's stock worth $27,000 after purchasing an additional 363 shares in the last quarter. Garde Capital Inc. purchased a new stake in PayPal during the 1st quarter worth about $28,000. Finally, Tsfg LLC increased its position in PayPal by 81.6% during the 1st quarter. Tsfg LLC now owns 445 shares of the credit services provider's stock worth $29,000 after purchasing an additional 200 shares in 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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