PayPal (NASDAQ:PYPL) Stock Price Down 1.9% on Analyst Downgrade

PayPal Holdings, Inc. (NASDAQ:PYPL) shares fell 1.9% during mid-day trading on Monday after Compass Point lowered their price target on the stock from $66.00 to $56.00. Compass Point currently has a sell rating on the stock. PayPal traded as low as $60.99 and last traded at $61.12. 12,456,723 shares were traded during mid-day trading, a decline of 0% from the average session volume of 12,461,683 shares. The stock had previously closed at $62.28.

Other research analysts have also recently issued reports about the stock. HSBC increased their price objective on shares of PayPal from $86.00 to $93.00 and gave the company a “buy” rating in a report on Wednesday, October 29th. Truist Financial increased their price target on PayPal from $65.00 to $66.00 and gave the company a “sell” rating in a research note on Tuesday, November 4th. Evercore ISI dropped their price objective on PayPal from $75.00 to $65.00 and set an “in-line” rating on the stock in a research note on Monday. Citigroup upgraded PayPal to a “hold” rating in a report on Thursday, October 23rd. Finally, Rothschild & Co Redburn lifted their target price on PayPal from $66.00 to $70.00 and gave the stock a “neutral” rating in a report on Tuesday, September 16th. Fifteen investment analysts have rated the stock with a Buy rating, nineteen have given a Hold rating and four have assigned a Sell rating to the stock. Based on data from MarketBeat, the company has an average rating of “Hold” and a consensus target price of $80.92.

Insider Activity

In related news, EVP Diego Scotti sold 3,838 shares of the firm’s stock in a transaction that occurred on Thursday, October 30th. The shares were sold at an average price of $68.97, for a total value of $264,706.86. Following the completion of the transaction, the executive vice president owned 16,989 shares of the company’s stock, valued at approximately $1,171,731.33. This trade represents a 18.43% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Suzan Kereere sold 12,500 shares of the business’s stock in a transaction on Monday, November 3rd. The shares were sold at an average price of $68.87, for a total transaction of $860,875.00. Following the sale, the insider directly owned 30,983 shares in the company, valued at approximately $2,133,799.21. This trade represents a 28.75% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders have sold 36,156 shares of company stock valued at $2,432,524. Corporate insiders own 0.08% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the business. Hilltop National Bank purchased a new stake in PayPal in the 2nd quarter worth about $27,000. MUFG Securities EMEA plc lifted its position in shares of PayPal by 100.4% in the second quarter. MUFG Securities EMEA plc now owns 385 shares of the credit services provider’s stock worth $29,000 after purchasing an additional 87,524 shares in the last quarter. Cloud Capital Management LLC acquired a new stake in shares of PayPal during the third quarter worth approximately $30,000. Kelleher Financial Advisors acquired a new stake in shares of PayPal during the third quarter worth approximately $30,000. Finally, Gordian Capital Singapore Pte Ltd grew its position in PayPal by 41.2% during the first quarter. Gordian Capital Singapore Pte Ltd now owns 473 shares of the credit services provider’s stock valued at $31,000 after purchasing an additional 138 shares in the last quarter. Hedge funds and other institutional investors own 68.32% of the company’s stock.

PayPal Trading Down 0.6%

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 stock has a market cap of $56.87 billion, a price-to-earnings ratio of 12.18, a price-to-earnings-growth ratio of 0.83 and a beta of 1.43. The company’s 50 day simple moving average is $66.30 and its two-hundred day simple moving average is $69.34.

PayPal (NASDAQ:PYPL) last issued its earnings results on Tuesday, October 28th. The credit services provider reported $1.34 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.20 by $0.14. PayPal had a net margin of 14.96% and a return on equity of 25.64%. The company had revenue of $8.42 billion during the quarter, compared to analyst estimates of $8.21 billion. During the same quarter last year, the business posted $1.20 EPS. The company’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. Research analysts expect that PayPal Holdings, Inc. will post 5.03 EPS for the current fiscal year.

PayPal Announces Dividend

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

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.