PayPal Target of Unusually High Options Trading (NASDAQ:PYPL)

Key Points

• PayPal experienced a significant spike in options trading, with 214,831 call options purchased, marking a 96% increase compared to its average volume.
• Insider trading showed CAO Chris Natali sold over $492,000 in shares, while executives collectively sold 15,102 shares worth more than $1 million in the past 90 days.
• Various analysts have set target prices for PayPal stock, with a consensus forecast around $83.50, indicating a mixed outlook on the stock's future performance.

PayPal Holdings, Inc. (NASDAQ:PYPL - Get Free Report) was the recipient of unusually large options trading activity on Tuesday. Stock traders bought 214,831 call options on the company. This is an increase of 96% compared to the typical volume of 109,709 call options.

Insider Buying and Selling at PayPal

In related news, CAO Chris Natali sold 7,102 shares of the business's stock in a transaction on Thursday, July 31st. The stock was sold at an average price of $69.35, for a total transaction of $492,523.70. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, EVP Diego Scotti sold 3,838 shares of the company's stock in a transaction on Thursday, July 31st. The stock was sold at an average price of $69.12, for a total value of $265,282.56. Following the completion of the sale, the executive vice president owned 16,989 shares of the company's stock, valued at $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. Insiders sold 15,102 shares of company stock worth $1,046,607 over the last 90 days. Company insiders own 0.08% of the company's stock.

Institutional Trading of PayPal

A number of hedge funds have recently added to or reduced their stakes in PYPL. Brighton Jones LLC boosted its stake in shares of PayPal by 15.2% during the 4th quarter. Brighton Jones LLC now owns 6,989 shares of the credit services provider's stock worth $596,000 after acquiring an additional 924 shares in the last quarter. Revolve Wealth Partners LLC purchased a new position in PayPal during the fourth quarter worth approximately $248,000. Hennessy Advisors Inc. boosted its position in PayPal by 5.3% during the first quarter. Hennessy Advisors Inc. now owns 20,000 shares of the credit services provider's stock worth $1,305,000 after purchasing an additional 1,000 shares in the last quarter. Ritholtz Wealth Management boosted its position in PayPal by 67.3% during the first quarter. Ritholtz Wealth Management now owns 18,618 shares of the credit services provider's stock worth $1,215,000 after purchasing an additional 7,492 shares in the last quarter. Finally, Trust Co. of Toledo NA OH boosted its position in PayPal by 36.0% during the first quarter. Trust Co. of Toledo NA OH now owns 9,304 shares of the credit services provider's stock worth $607,000 after purchasing an additional 2,461 shares in the last quarter. 68.32% of the stock is owned by hedge funds and other institutional investors.

PayPal Stock Down 1.4%

Shares of PYPL opened at $68.86 on Tuesday. PayPal has a 52 week low of $55.85 and a 52 week high of $93.66. The company has a quick ratio of 1.33, a current ratio of 1.33 and a debt-to-equity ratio of 0.56. The company has a market capitalization of $65.79 billion, a price-to-earnings ratio of 14.71, a PEG ratio of 1.08 and a beta of 1.44. The stock's 50-day moving average price is $68.94 and its 200-day moving average price is $69.45.

PayPal (NASDAQ:PYPL - Get Free Report) last released its quarterly earnings data on Tuesday, July 29th. The credit services provider reported $1.40 EPS for the quarter, topping the consensus estimate of $1.30 by $0.10. PayPal had a return on equity of 25.35% and a net margin of 14.49%.The business had revenue of $8.29 billion for the quarter, compared to analyst estimates of $8.08 billion. During the same quarter in the prior 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. On average, sell-side analysts predict that PayPal will post 5.03 EPS for the current year.

Wall Street Analyst Weigh In

Several research analysts recently weighed in on PYPL shares. JMP Securities dropped their target price on PayPal from $110.00 to $100.00 and set a "market outperform" rating on the stock in a research note on Wednesday, July 30th. BMO Capital Markets reiterated a "market perform" rating on shares of PayPal in a research note on Tuesday, July 29th. Macquarie reiterated an "outperform" rating and issued a $95.00 target price on shares of PayPal in a research report on Wednesday, July 30th. Piper Sandler set a $74.00 target price on PayPal in a research report on Tuesday, July 29th. Finally, Canaccord Genuity Group reiterated a "buy" rating and issued a $96.00 target price on shares of PayPal in a research report on Wednesday, July 30th. Sixteen research analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and three have assigned a Sell rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of "Hold" and an average price target of $83.50.

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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