PayPal (NASDAQ:PYPL) Upgraded to Hold at Clear Str

Key Points

• Clear Str upgraded PayPal to a Hold rating, adding to a mixed analyst picture that currently leans neutral. MarketBeat says the stock’s overall consensus rating is also Hold, with a $54.61 average price target.
• PayPal recently beat earnings expectations, reporting $1.34 EPS versus the $1.27 consensus and revenue of $8.35 billion versus $8.05 billion expected. Quarterly revenue also rose 7.2% year over year.
• The stock has been moving on takeover speculation, after reports that Stripe and Advent made a $53 billion bid at $60.50 per share. However, PayPal’s board reportedly views the offer as inadequate, so deal uncertainty remains.

PayPal (NASDAQ:PYPL - Get Free Report) was upgraded by research analysts at Clear Str to a "hold" rating in a note issued to investors on Thursday,Zacks.com reports.

PYPL has been the subject of several other reports. BTIG Research reiterated a "neutral" rating on shares of PayPal in a research report on Wednesday. Truist Financial lowered their price target on PayPal from $45.00 to $44.00 and set a "sell" rating on the stock in a research report on Tuesday, May 12th. Zacks Research raised PayPal from a "strong sell" rating to a "hold" rating in a research note on Friday, April 17th. The Goldman Sachs Group upped their price objective on PayPal from $41.00 to $48.00 and gave the stock a "sell" rating in a report on Thursday, July 9th. Finally, Bank of America reduced their price objective on PayPal from $55.00 to $53.00 and set a "neutral" rating on the stock in a research report on Wednesday, May 6th. Seven analysts have rated the stock with a Buy rating, thirty-four have assigned a Hold rating and five have assigned a Sell rating to the stock. According to data from MarketBeat, the company currently has an average rating of "Hold" and a consensus price target of $54.61.

PayPal Trading Up 2.2%

Shares of PYPL opened at $56.73 on Thursday. PayPal has a 1-year low of $38.46 and a 1-year high of $79.50. The company has a market capitalization of $50.04 billion, a P/E ratio of 10.64, a P/E/G ratio of 1.39 and a beta of 1.33. The company has a debt-to-equity ratio of 0.47, a current ratio of 1.26 and a quick ratio of 1.26. The firm's 50 day simple moving average is $44.37 and its 200 day simple moving average is $47.16.

PayPal (NASDAQ:PYPL - Get Free Report) last released its quarterly earnings results on Tuesday, May 5th. The credit services provider reported $1.34 EPS for the quarter, topping analysts' consensus estimates of $1.27 by $0.07. The business had revenue of $8.35 billion during the quarter, compared to analysts' expectations of $8.05 billion. PayPal had a net margin of 15.00% and a return on equity of 25.02%. The business's quarterly revenue was up 7.2% compared to the same quarter last year. During the same quarter in the previous year, the company earned $1.33 EPS. Sell-side analysts forecast that PayPal will post 5.32 earnings per share for the current fiscal year.

Insider Transactions at PayPal

In related news, insider Suzan Kereere sold 3,379 shares of the firm's stock in a transaction that occurred on Wednesday, June 3rd. The stock was sold at an average price of $42.79, for a total transaction of $144,587.41. Following the transaction, the insider directly owned 30,983 shares in the company, valued at $1,325,762.57. This trade represents a 9.83% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Chris Natali sold 1,337 shares of PayPal stock in a transaction that occurred on Wednesday, April 29th. The stock was sold at an average price of $49.46, for a total value of $66,128.02. Following the completion of the transaction, the chief accounting officer directly owned 1,586 shares in the company, valued at $78,443.56. This trade represents a 45.74% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 20,612 shares of company stock worth $966,623. Company insiders own 0.63% of the company's stock.

Institutional Trading of PayPal

A number of institutional investors have recently made changes to their positions in the stock. Bard Associates Inc. purchased a new stake in PayPal during the 4th quarter valued at $25,000. Kelleher Financial Advisors purchased a new position in shares of PayPal in the third quarter valued at about $30,000. Caitong International Asset Management Co. Ltd increased its position in shares of PayPal by 15,233.3% in 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 period. Safe Harbor Fiduciary LLC purchased a new position in shares of PayPal in the fourth quarter valued at about $28,000. Finally, Advocate Investing Services LLC bought a new position in shares of PayPal during the fourth quarter valued at about $30,000. Hedge funds and other institutional investors own 68.32% of the company's stock.

PayPal News Summary

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: PayPal surged after reports that Stripe and Advent made a $53 billion acquisition offer at $60.50 per share, creating a takeover premium and boosting investor optimism. Reuters: Stripe, Advent offer to buy PayPal for more than $53 billion
• Positive Sentiment: Analysts and investors are arguing the bid undervalues PayPal, with some estimates pointing to a higher fair value around $70 a share or more, which keeps takeover speculation alive. Article: Cantor sees potential for higher PayPal offer as analysis suggests $70/share value
• Neutral Sentiment: Barclays raised its price target to $55 and Canaccord lifted its target to $55, signaling some improvement in outlook, though both targets remain below the recent trading level. Article: Paypal (PYPL) Gains As Market Dips: What You Should Know
• Neutral Sentiment: PayPal’s board is reportedly viewing the Stripe-Advent proposal as inadequate, suggesting negotiations could continue and the final outcome is still uncertain. Reuters: PayPal board sees Stripe-Advent offer as inadequate, sources say
• Negative Sentiment: Regulatory and financing hurdles could complicate or delay any deal, which may temper some of the takeover enthusiasm if no quick resolution emerges. Reuters: PayPal board sees Stripe-Advent offer as inadequate, sources say

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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