PayPal Sees Unusually Large Options Volume (NASDAQ:PYPL)

Key Points

• PayPal saw a significant increase in options trading, with 112,337 call options purchased on Wednesday, representing a 43% rise over the average daily volume.
• The stock price of PayPal (NASDAQ:PYPL) dropped by 2.4% to $69.71, with a trading volume significantly higher than its average.
• Analysts have mixed ratings on PayPal, with a consensus rating of "Hold" and a price target of $84.10, while some firms have issued both "buy" and "sell" ratings.

PayPal Holdings, Inc. (NASDAQ:PYPL - Get Free Report) was the recipient of some unusual options trading on Wednesday. Investors purchased 112,337 call options on the company. Thisrepresentsanincreaseofapproximately43% compared to the typical daily volume of 78,576 call options.

Insider Activity

In other PayPal news, insider Suzan Kereere sold 4,162 shares of the firm's stock in a transaction on Friday, June 6th. The stock was sold at an average price of $73.24, for a total value of $304,824.88. Following the transaction, the insider owned 48,483 shares in the company, valued at approximately $3,550,894.92. This trade represents a 7.91% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, EVP Diego Scotti sold 3,839 shares of the firm's stock in a transaction on Friday, June 6th. The shares were sold at an average price of $73.24, for a total value of $281,168.36. Following the completion of the transaction, the executive vice president owned 16,989 shares in the company, valued at $1,244,274.36. The trade was a 18.43% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 11,796 shares of company stock worth $863,028 in the last quarter. Corporate insiders own 0.08% of the company's stock.

Hedge Funds Weigh In On PayPal

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Mpwm Advisory Solutions LLC purchased a new stake in PayPal during the fourth quarter worth approximately $25,000. Hurley Capital LLC purchased a new stake in PayPal during the fourth quarter worth approximately $27,000. Evermay Wealth Management LLC lifted its stake in PayPal by 726.0% during the first 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 during the last quarter. Hilltop National Bank purchased a new stake in PayPal during the second quarter worth approximately $27,000. Finally, Garde Capital Inc. purchased a new stake in PayPal during the first quarter worth approximately $28,000. Hedge funds and other institutional investors own 68.32% of the company's stock.

Wall Street Analysts Forecast Growth

A number of research analysts have weighed in on PYPL shares. Evercore ISI started coverage on PayPal in a report on Wednesday, April 9th. They issued an "in-line" rating and a $65.00 price objective on the stock. Deutsche Bank Aktiengesellschaft set a $75.00 price objective on PayPal in a report on Tuesday. Morgan Stanley reiterated a "positive" rating on shares of PayPal in a report on Wednesday. Piper Sandler set a $74.00 price target on PayPal in a report on Tuesday. Finally, Bank of America reduced their price target on PayPal from $103.00 to $93.00 and set a "buy" rating on the stock in a report on Monday, April 14th. Two research analysts have rated the stock with a sell rating, fourteen have assigned a hold rating, nineteen have issued a buy rating and one has issued a strong buy rating to the company's stock. Based on data from MarketBeat, PayPal currently has a consensus rating of "Moderate Buy" and a consensus target price of $84.57.

PayPal Stock Down 1.9%

Shares of PYPL traded down $1.33 during midday trading on Friday, hitting $67.43. The company had a trading volume of 5,793,141 shares, compared to its average volume of 11,207,382. The company's 50-day simple moving average is $73.20 and its 200-day simple moving average is $72.55. The company has a debt-to-equity ratio of 0.56, a quick ratio of 1.30 and a current ratio of 1.33. The firm has a market capitalization of $64.42 billion, a P/E ratio of 14.41, a P/E/G ratio of 1.11 and a beta of 1.45. PayPal has a 1 year low of $55.85 and a 1 year high of $93.66.

PayPal (NASDAQ:PYPL - Get Free Report) last announced its quarterly earnings data on Tuesday, July 29th. The credit services provider reported $1.40 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.30 by $0.10. The business had revenue of $8.29 billion during the quarter, compared to analysts' expectations of $8.08 billion. PayPal had a return on equity of 25.35% and a net margin of 14.49%. During the same quarter last year, the business posted $1.19 EPS. As a group, sell-side analysts expect that PayPal will post 5.03 EPS for the current year.

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.