PayPal Holdings, Inc. (NASDAQ:PYPL) experienced a decline of 1.2% in its stock price during trading on Wednesday. The stock dipped to a low of $58.34 before recovering slightly to close at $58.38. Approximately 12,741,401 shares exchanged hands, reflecting a 1% increase from the average daily volume of 12,651,667 shares. Prior to this, the stock had closed at $59.10.
Analysts Adjust Ratings and Price Targets
Several research firms have recently issued updated ratings for PayPal. Notably, Wall Street Zen downgraded the stock from a “buy” to a “hold” rating in a report dated December 6. Morgan Stanley maintained a “negative” outlook on PayPal as of October 29, while UBS Group lowered its price target from $80.00 to $65.00 on December 24. Cowen continued to hold a “mixed” rating, and JPMorgan Chase & Co. reaffirmed its “neutral” rating, adjusting its price target from $85.00 to $70.00 on December 4.
Currently, the consensus among analysts is that 14 have rated PayPal as a “buy,” 22 have classified it as a “hold,” and four have issued a “sell” rating. According to MarketBeat, the average target price sits at $78.29, suggesting a potential upside from the current trading price.
Financial Performance Insights
PayPal’s market capitalization stands at approximately $54.62 billion, with a price-to-earnings (P/E) ratio of 11.70 and a price/earnings-to-growth (PEG) ratio of 0.79. The stock’s fifty-day simple moving average is $62.93, while the 200-day average is $67.94. The company reported a debt-to-equity ratio of 0.56, alongside a current and quick ratio of 1.34.
In its latest quarterly earnings report, released on October 28, PayPal reported earnings per share (EPS) of $1.34, which surpassed analyst expectations of $1.20 by $0.14. The company achieved revenues of $8.42 billion for the quarter, exceeding forecasts of $8.21 billion, marking a 7.3% increase compared to the same quarter last year. For fiscal year 2025, PayPal anticipates EPS between $5.350 and $5.390.
On the dividend front, PayPal recently announced a quarterly dividend of $0.14, which was paid on December 10. Shareholders recorded as of November 19 received this dividend, representing an annualized yield of 1.0%. The company’s dividend payout ratio is currently at 11.22%.
Insider Transactions and Institutional Activity
Recent insider activities reveal that Suzan Kereere, an insider, sold 12,500 shares on November 3 at an average price of $68.87, totaling $860,875. Following this sale, Kereere holds 30,983 shares, valued at approximately $2.13 million, marking a 28.75% decrease in her position. Additionally, Diego Scotti, an Executive Vice President, sold 3,838 shares on October 30 at an average price of $68.97, resulting in a total transaction of $264,706.86. After this transaction, Scotti owns 16,989 shares valued at around $1.17 million.
In the past ninety days, insiders have sold a total of 36,156 shares of PayPal, worth approximately $2.43 million. Currently, insiders hold 0.08% of the company’s stock.
Institutional investors have also been actively managing their stakes in PayPal. Capital Research Global Investors increased its holdings by 2.3% in the third quarter, acquiring an additional 636,441 shares, bringing its total to 27,953,803 shares valued at $1.87 billion. Norges Bank entered a new position valued at $921.57 million in the second quarter. Artisan Partners Limited Partnership raised its holdings by 1.6%, now owning 11,992,031 shares valued at $891.25 million.
Invesco Ltd. increased its stake by 10.9%, owning 11,131,949 shares worth $746.51 million, while Amundi boosted its stake by 1.6%, acquiring an additional 132,837 shares to hold 8,493,311 shares valued at $605.49 million. Institutional investors currently account for 68.32% of PayPal’s stock ownership.
PayPal Holdings, Inc. operates a global digital payments platform, facilitating transactions for consumers and merchants across various channels. The company offers a range of payment solutions, including its digital wallet, merchant payment processing, and various consumer services. Key offerings include the PayPal wallet, Venmo app, Braintree payment gateway, and PayPal Credit.