PayPal (NASDAQ:PYPL) Trading Down 2.6% Following Analyst Downgrade

PayPal Holdings, Inc. (NASDAQ:PYPL)’s share price was down 2.6% during trading on Wednesday after BNP Paribas Exane lowered their price target on the stock from $71.00 to $69.00. BNP Paribas Exane currently has a neutral rating on the stock. PayPal traded as low as $60.41 and last traded at $61.24. Approximately 24,331,510 shares traded hands during mid-day trading, an increase of 95% from the average daily volume of 12,451,697 shares. The stock had previously closed at $62.90.

Several other equities research analysts have also commented on the stock. Mizuho set a $84.00 price target on shares of PayPal in a report on Thursday, October 30th. Jefferies Financial Group cut their target price on shares of PayPal from $75.00 to $60.00 and set a “hold” rating for the company in a research note on Monday, November 24th. Citigroup upgraded shares of PayPal to a “hold” rating in a research report on Thursday, October 23rd. Dbs Bank lowered their price objective on PayPal from $75.00 to $70.00 and set a “hold” rating on the stock in a report on Thursday, November 13th. Finally, Morgan Stanley reiterated a “negative” rating on shares of PayPal in a research note on Wednesday, October 29th. Fifteen equities research analysts have rated the stock with a Buy rating, nineteen have assigned a Hold rating and four have assigned a Sell rating to the company. Based on data from MarketBeat, the stock has a consensus rating of “Hold” and an average target price of $81.67.

Insider Activity

In other news, EVP Aaron Webster sold 9,282 shares of PayPal stock in a transaction that occurred on Monday, November 10th. The shares were sold at an average price of $66.29, for a total transaction of $615,303.78. Following the sale, the executive vice president owned 35,699 shares of the company’s stock, valued at approximately $2,366,486.71. The trade was a 20.64% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CAO Chris Natali sold 1,374 shares of the stock in a transaction that occurred on Thursday, October 30th. The stock was sold at an average price of $69.13, for a total value of $94,984.62. The disclosure for this sale is available in the SEC filing. Insiders sold 36,156 shares of company stock valued at $2,432,524 over the last three months. 0.08% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On PayPal

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. IFP Advisors Inc grew its holdings in shares of PayPal by 3.9% during the 3rd quarter. IFP Advisors Inc now owns 49,166 shares of the credit services provider’s stock worth $3,297,000 after purchasing an additional 1,833 shares during the period. Swiss Life Asset Management Ltd raised its holdings in PayPal by 7.0% in the 3rd quarter. Swiss Life Asset Management Ltd now owns 225,198 shares of the credit services provider’s stock valued at $15,102,000 after buying an additional 14,746 shares during the period. Strategic Advocates LLC acquired a new position in PayPal in the third quarter valued at about $38,000. CIBC Bancorp USA Inc. purchased a new position in PayPal during the third quarter worth about $11,109,000. Finally, Achmea Investment Management B.V. increased its position in shares of PayPal by 127.9% during the third quarter. Achmea Investment Management B.V. now owns 474,631 shares of the credit services provider’s stock valued at $31,828,000 after acquiring an additional 266,359 shares during the last quarter. Hedge funds and other institutional investors own 68.32% of the company’s stock.

PayPal Stock Up 0.8%

The business’s 50 day moving average price is $66.70 and its 200-day moving average price is $69.58. The company has a debt-to-equity ratio of 0.56, a quick ratio of 1.34 and a current ratio of 1.34. The firm has a market capitalization of $57.76 billion, a PE ratio of 12.37, a P/E/G ratio of 0.83 and a beta of 1.43.

PayPal (NASDAQ:PYPL) last posted its earnings results on Tuesday, October 28th. The credit services provider reported $1.34 earnings per share for the quarter, beating the consensus estimate of $1.20 by $0.14. PayPal had a net margin of 14.96% and a return on equity of 25.64%. The firm had revenue of $8.42 billion during the quarter, compared to the consensus estimate of $8.21 billion. During the same quarter last year, the firm earned $1.20 EPS. The firm’s revenue for the quarter was up 7.3% on a year-over-year basis. PayPal has set its Q4 2025 guidance at 1.270-1.310 EPS and its FY 2025 guidance at 5.350-5.390 EPS. As a group, equities research analysts forecast that PayPal Holdings, Inc. will post 5.03 earnings per share for the current year.

PayPal Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, December 10th. Investors of record on Wednesday, November 19th will be issued a $0.14 dividend. This represents a $0.56 annualized dividend and a dividend yield of 0.9%. The ex-dividend date is Wednesday, November 19th. PayPal’s payout ratio is currently 11.22%.

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.