PayPal (NASDAQ:PYPL) Sees Unusually-High Trading Volume After Earnings Beat

PayPal Holdings, Inc. (NASDAQ:PYPL) shares saw unusually-high trading volume on Tuesday following a better than expected earnings announcement. Approximately 5,799,903 shares traded hands during mid-day trading, a decline of 49% from the previous session’s volume of 11,439,866 shares.The stock last traded at $64.74 and had previously closed at $64.93.

The credit services provider reported $1.33 EPS for the quarter, beating the consensus estimate of $1.16 by $0.17. PayPal had a net margin of 13.04% and a return on equity of 23.67%. The business had revenue of $7.79 billion during the quarter, compared to analyst estimates of $7.84 billion. During the same quarter last year, the firm posted $1.08 earnings per share. The business’s revenue for the quarter was up 1.2% compared to the same quarter last year.

Analysts Set New Price Targets

A number of analysts have weighed in on PYPL shares. Wells Fargo & Company cut their price objective on shares of PayPal from $80.00 to $74.00 and set an “equal weight” rating on the stock in a report on Wednesday, April 16th. Monness Crespi & Hardt cut their price objective on shares of PayPal from $120.00 to $90.00 and set a “buy” rating on the stock in a report on Tuesday, April 8th. Evercore ISI started coverage on shares of PayPal in a report on Wednesday, April 9th. They set an “in-line” rating and a $65.00 price objective on the stock. Piper Sandler cut their price objective on shares of PayPal from $76.00 to $70.00 and set a “neutral” rating on the stock in a report on Tuesday. Finally, Royal Bank of Canada cut their price objective on shares of PayPal from $104.00 to $88.00 and set an “outperform” rating on the stock in a report on Wednesday. Two analysts have rated the stock with a sell rating, fifteen have issued a hold rating, twenty-one have assigned a buy rating and one has assigned a strong buy rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $83.72.

Insider Activity

In other news, Director Gail J. Mcgovern sold 2,446 shares of the stock in a transaction dated Thursday, February 27th. The stock was sold at an average price of $72.15, for a total value of $176,478.90. Following the completion of the sale, the director now owns 29,734 shares in the company, valued at approximately $2,145,308.10. This trade represents a 7.60 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Insiders own 0.14% of the company’s stock.

Institutional Investors Weigh In On PayPal

A number of large investors have recently modified their holdings of PYPL. Park Place Capital Corp grew its stake in shares of PayPal by 6.6% in the fourth quarter. Park Place Capital Corp now owns 1,886 shares of the credit services provider’s stock worth $161,000 after acquiring an additional 116 shares during the last quarter. Rosenberg Matthew Hamilton grew its stake in shares of PayPal by 67.6% in the fourth quarter. Rosenberg Matthew Hamilton now owns 310 shares of the credit services provider’s stock worth $26,000 after acquiring an additional 125 shares during the last quarter. JFS Wealth Advisors LLC grew its stake in shares of PayPal by 33.2% in the fourth quarter. JFS Wealth Advisors LLC now owns 502 shares of the credit services provider’s stock worth $43,000 after acquiring an additional 125 shares during the last quarter. Wynn Capital LLC grew its stake in shares of PayPal by 1.1% in the fourth quarter. Wynn Capital LLC now owns 11,515 shares of the credit services provider’s stock worth $983,000 after acquiring an additional 130 shares during the last quarter. Finally, Avalon Trust Co boosted its stake in PayPal by 7.0% during the fourth quarter. Avalon Trust Co now owns 2,067 shares of the credit services provider’s stock worth $176,000 after buying an additional 135 shares in the last quarter. Institutional investors and hedge funds own 68.32% of the company’s stock.

PayPal Price Performance

The company has a debt-to-equity ratio of 0.48, a current ratio of 1.26 and a quick ratio of 1.26. The stock’s 50 day simple moving average is $66.08 and its two-hundred day simple moving average is $78.30. The stock has a market cap of $64.35 billion, a price-to-earnings ratio of 16.42, a P/E/G ratio of 1.27 and a beta of 1.60.

About PayPal

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.