PayPal (NASDAQ:PYPL) Hits New 52-Week Low on Analyst Downgrade

PayPal Holdings, Inc. (NASDAQ:PYPL)’s share price reached a new 52-week low during mid-day trading on Wednesday after Rothschild Redb downgraded the stock from a hold rating to a strong sell rating. The company traded as low as $54.61 and last traded at $54.4470, with a volume of 5975675 shares trading hands. The stock had previously closed at $55.51.

PYPL has been the topic of a number of other research reports. Deutsche Bank Aktiengesellschaft reduced their price target on PayPal from $75.00 to $65.00 and set a “hold” rating on the stock in a research report on Friday, December 5th. Redburn Partners set a $50.00 price objective on shares of PayPal in a research report on Wednesday. Monness Crespi & Hardt downgraded PayPal from a “buy” rating to a “neutral” rating in a report on Monday, January 5th. Robert W. Baird reissued a “neutral” rating and set a $66.00 target price (down previously from $83.00) on shares of PayPal in a research report on Friday, December 12th. Finally, Compass Point cut their price objective on shares of PayPal from $56.00 to $55.00 and set a “sell” rating on the stock in a report on Tuesday, January 13th. Twelve analysts have rated the stock with a Buy rating, twenty-four have assigned a Hold rating and six have issued a Sell rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of “Hold” and an average target price of $73.10.

Insider Transactions at PayPal

In other PayPal news, insider Suzan Kereere sold 4,162 shares of the company’s stock in a transaction dated Wednesday, November 19th. The stock was sold at an average price of $59.84, for a total transaction of $249,054.08. Following the completion of the sale, the insider directly owned 30,983 shares in the company, valued at $1,854,022.72. This represents a 11.84% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, EVP Aaron Webster sold 9,282 shares of the business’s stock in a transaction dated Monday, November 10th. The stock was sold at an average price of $66.29, for a total value of $615,303.78. Following the sale, the executive vice president owned 35,699 shares of the company’s stock, valued at $2,366,486.71. The trade was a 20.64% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders have sold 25,944 shares of company stock valued at $1,725,233. 0.08% of the stock is owned by company insiders.

PayPal News Summary

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: Bull case: The Motley Fool argues 2026 could be a breakout year for PayPal if new partnerships and initiatives scale, providing a longer‑term growth angle that could support the stock. Prediction: 2026 Will Be the Year of PayPal
• Positive Sentiment: Merchant adoption of crypto: PayPal/NCA survey shows ~40% of U.S. merchants accept crypto at checkout — a market expansion signal that could lift payments volume over time if PayPal monetizes it. Nearly 40% of US merchants now accept crypto at checkout: PayPal
• Neutral Sentiment: Q4 event risk: Multiple previews urge caution ahead of PayPal’s Feb. 3 earnings — watch TPV, active accounts, take rate and guidance rather than just headline EPS/revenue. Results could swing sentiment. PayPal (PYPL) Q4 Earnings Preview
• Neutral Sentiment: Event timing: Several articles recommend pausing ahead of Q4 results because upcoming comps and details on volumes/revenue mix will drive short‑term direction. PayPal Reports Q4 Earnings on Feb. 3. Why You Should Press Pause on PYPL Stock For Now.
• Negative Sentiment: Analyst downgrades piling up: Rothschild/Redburn and others have cut ratings to Sell/Strong Sell and trimmed price targets, pressuring near‑term sentiment. “Heads Up, Investors,” PayPal Stock Hit with Sell Rating
• Negative Sentiment: Price‑target cuts: Truist and HSBC have lowered targets (Truist to $58, HSBC to $72), signaling weaker near‑term expectations and contributing to selling pressure. Truist Anticipates Solid PayPal Q4 Results but Warns of Difficult Volume Comparisons HSBC Lowers PayPal Price Target
• Negative Sentiment: Competitive and macro concerns: Analysis pieces highlight a brutal competitive landscape and macro headwinds that could limit upside absent clear volume/monetization beats. PayPal: A Brutal Competitive Landscape And Changes Yet To Be Seen

Institutional Trading of PayPal

Institutional investors have recently added to or reduced their stakes in the business. Hilltop National Bank purchased a new stake in shares of PayPal during the 2nd quarter valued at about $27,000. MUFG Securities EMEA plc grew its position in PayPal by 100.4% in the second quarter. MUFG Securities EMEA plc now owns 385 shares of the credit services provider’s stock valued at $29,000 after acquiring an additional 87,524 shares in the last quarter. Cloud Capital Management LLC purchased a new stake in shares of PayPal during the third quarter valued at approximately $30,000. Kelleher Financial Advisors acquired a new position in shares of PayPal during the third quarter worth $30,000. Finally, True Wealth Design LLC boosted its stake in shares of PayPal by 285.3% in the third quarter. True Wealth Design LLC now owns 524 shares of the credit services provider’s stock valued at $35,000 after purchasing an additional 388 shares during the period. 68.32% of the stock is owned by hedge funds and other institutional investors.

PayPal Stock Performance

The firm has a market capitalization of $49.69 billion, a price-to-earnings ratio of 10.64, a price-to-earnings-growth ratio of 0.67 and a beta of 1.42. 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’s fifty day moving average is $59.19 and its two-hundred day moving average is $65.65.

PayPal (NASDAQ:PYPL) last posted its quarterly earnings data on Tuesday, October 28th. The credit services provider reported $1.34 earnings per share 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 analysts’ expectations of $8.21 billion. During the same period in the prior year, the company posted $1.20 EPS. The firm’s revenue for the quarter was up 7.3% on a year-over-year basis. Analysts forecast that PayPal Holdings, Inc. will post 5.03 earnings per share for the current year.

PayPal Company Profile

PayPal Holdings, Inc operates a global digital payments platform that enables consumers and merchants to send and receive payments online, on mobile devices and at the point of sale. The company provides a broad set of payment solutions, including a digital wallet, merchant payment processing, checkout services, invoicing and fraud-management tools. PayPal’s platform is designed to support e-commerce, in-person retail and person-to-person transfers, targeting both individual consumers and businesses of varying sizes.

Key products and services in PayPal’s portfolio include the PayPal wallet and checkout ecosystem, the Venmo peer-to-peer mobile app, Braintree’s developer-focused payment gateway, Xoom for international money transfers, and PayPal Credit and buy-now-pay-later options.