Weiss Ratings Reaffirms "Hold (C)" Rating for PayPal (NASDAQ:PYPL)

Key Points

• Weiss Ratings has reaffirmed a "Hold (C)" rating for PayPal, indicating a cautious stance towards its stock.
• Analysts have mixed views on PayPal with 15 rating it as a Buy, 14 a Hold, and 3 a Sell, reflecting varied confidence in the company's future performance.
• PayPal reported earnings surpassing estimates, with a Q2 earnings per share of $1.40 and projected guidance of 5.150-5.300 EPS for FY 2025, showing potential growth despite current market uncertainties.

PayPal (NASDAQ:PYPL - Get Free Report)'s stock had its "hold (c)" rating reiterated by analysts at Weiss Ratings in a note issued to investors on Saturday,Weiss Ratings reports.

A number of other analysts also recently weighed in on the stock. Wall Street Zen downgraded shares of PayPal from a "buy" rating to a "hold" rating in a report on Saturday, October 4th. Citigroup upgraded shares of PayPal to a "hold" rating in a report on Thursday. Macquarie restated an "outperform" rating and issued a $95.00 target price on shares of PayPal in a report on Wednesday, July 30th. Morgan Stanley restated a "positive" rating on shares of PayPal in a report on Wednesday, July 30th. Finally, Deutsche Bank Aktiengesellschaft set a $75.00 price target on shares of PayPal in a research note on Tuesday, July 29th. Fifteen investment analysts have rated the stock with a Buy rating, fourteen have given a Hold rating and three have assigned a Sell rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus price target of $82.46.

PayPal Price Performance

NASDAQ PYPL traded up $0.11 on Friday, reaching $69.77. The company had a trading volume of 8,606,735 shares, compared to its average volume of 15,798,058. 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 stock has a market capitalization of $66.66 billion, a PE ratio of 14.91, a price-to-earnings-growth ratio of 1.08 and a beta of 1.44. The firm's 50 day moving average price is $68.94 and its 200 day moving average price is $69.83. PayPal has a 12 month low of $55.85 and a 12 month high of $93.66.

PayPal (NASDAQ:PYPL - Get Free Report) last posted its earnings results on Tuesday, July 29th. The credit services provider reported $1.40 earnings per share for the quarter, topping analysts' consensus estimates 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 for the quarter, compared to the consensus estimate of $8.08 billion. During the same period in the previous 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, equities analysts predict that PayPal will post 5.03 earnings per share for the current year.

Insider Buying and Selling at PayPal

In other PayPal news, CAO Chris Natali sold 7,102 shares of the business's stock in a transaction dated Thursday, July 31st. The shares were sold at an average price of $69.35, for a total value of $492,523.70. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, 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 transaction of $288,801.18. Following the completion of the sale, the insider directly owned 48,483 shares of the company's stock, valued at approximately $3,364,235.37. This trade represents a 7.91% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 15,102 shares of company stock valued at $1,046,607 in the last three months. Company insiders own 0.08% of the company's stock.

Institutional Investors Weigh In On PayPal

Large investors have recently added to or reduced their stakes in the stock. AQR Capital Management LLC boosted its position in PayPal by 15.8% in the 1st quarter. AQR Capital Management LLC now owns 3,501,936 shares of the credit services provider's stock valued at $224,001,000 after buying an additional 476,763 shares during the period. Thompson Investment Management Inc. boosted its position in PayPal by 2.8% in the 2nd quarter. Thompson Investment Management Inc. now owns 154,991 shares of the credit services provider's stock valued at $11,519,000 after buying an additional 4,165 shares during the period. Kathmere Capital Management LLC purchased a new stake in PayPal in the 2nd quarter valued at about $325,000. Allianz SE boosted its position in PayPal by 281.8% in the 1st quarter. Allianz SE now owns 30,338 shares of the credit services provider's stock valued at $1,980,000 after buying an additional 22,392 shares during the period. Finally, Nuveen LLC bought a new stake in shares of PayPal in the 1st quarter valued at about $529,264,000. 68.32% of the stock is owned by hedge funds and other institutional investors.

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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