PayPal (NASDAQ:PYPL) Given New $42.00 Price Target at Citigroup

PayPal (NASDAQ:PYPL) had its price target trimmed by Citigroup from $60.00 to $42.00 in a research note released on Wednesday, Marketbeat reports. The brokerage currently has a neutral rating on the credit services provider’s stock.

A number of other equities research analysts have also issued reports on the stock. Susquehanna cut their price target on shares of PayPal from $90.00 to $63.00 and set a “positive” rating on the stock in a report on Wednesday. Monness Crespi & Hardt cut shares of PayPal from a “buy” rating to a “neutral” rating in a research report on Monday, January 5th. Piper Sandler reduced their target price on PayPal from $76.00 to $74.00 and set a “neutral” rating for the company in a report on Wednesday, January 14th. Royal Bank Of Canada decreased their target price on PayPal from $91.00 to $59.00 and set an “outperform” rating for the company in a research report on Wednesday. Finally, Needham & Company LLC reissued a “hold” rating on shares of PayPal in a research report on Tuesday. Ten equities research analysts have rated the stock with a Buy rating, thirty have issued a Hold rating and five have assigned a Sell rating to the company’s stock. According to MarketBeat, the stock has a consensus rating of “Hold” and a consensus price target of $62.88.

PayPal Stock Performance

Shares of NASDAQ PYPL opened at $41.03 on Wednesday. The stock’s fifty day simple moving average is $58.06 and its 200 day simple moving average is $64.85. The stock has a market capitalization of $38.39 billion, a price-to-earnings ratio of 7.58, a PEG ratio of 0.52 and a beta of 1.43. The company has a quick ratio of 1.34, a current ratio of 1.29 and a debt-to-equity ratio of 0.49. PayPal has a 52-week low of $39.96 and a 52-week high of $79.74.

PayPal (NASDAQ:PYPL) last issued its quarterly earnings results on Tuesday, February 3rd. The credit services provider reported $1.23 earnings per share for the quarter, missing analysts’ consensus estimates of $1.29 by ($0.06). The company had revenue of $8.68 billion during the quarter, compared to analysts’ expectations of $8.82 billion. PayPal had a return on equity of 25.42% and a net margin of 15.77%.The company’s revenue for the quarter was up 4.0% compared to the same quarter last year. During the same period in the prior year, the business posted $1.19 EPS. As a group, sell-side analysts forecast that PayPal will post 5.03 earnings per share for the current fiscal year.

PayPal Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, March 25th. Investors of record on Wednesday, March 4th will be given a dividend of $0.14 per share. The ex-dividend date of this dividend is Wednesday, March 4th. This represents a $0.56 dividend on an annualized basis and a yield of 1.4%. PayPal’s dividend payout ratio (DPR) is presently 11.22%.

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 value of $249,054.08. Following the transaction, the insider directly owned 30,983 shares of the company’s stock, valued at $1,854,022.72. This represents a 11.84% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, EVP Aaron Webster sold 9,282 shares of the firm’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 directly owned 35,699 shares of the company’s stock, valued at $2,366,486.71. This trade represents a 20.64% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders own 0.08% of the company’s stock.

Institutional Trading of PayPal

A number of institutional investors have recently added to or reduced their stakes in the business. Brighton Jones LLC increased its position in PayPal by 15.2% during the fourth quarter. Brighton Jones LLC now owns 6,989 shares of the credit services provider’s stock worth $596,000 after buying an additional 924 shares during the last quarter. Revolve Wealth Partners LLC bought a new stake in shares of PayPal during the 4th quarter worth about $248,000. Sivia Capital Partners LLC increased its holdings in shares of PayPal by 41.5% during the 2nd quarter. Sivia Capital Partners LLC now owns 4,470 shares of the credit services provider’s stock valued at $332,000 after acquiring an additional 1,310 shares during the last quarter. Hilltop National Bank bought a new position in shares of PayPal in the 2nd quarter valued at approximately $27,000. Finally, Wealthcare Advisory Partners LLC lifted its holdings in PayPal by 20.2% in the 2nd quarter. Wealthcare Advisory Partners LLC now owns 9,157 shares of the credit services provider’s stock worth $681,000 after purchasing an additional 1,541 shares during the last quarter. 68.32% of the stock is currently owned by institutional investors and hedge funds.

Key PayPal News

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: Some investors/analysts flag a potential buying opportunity because PYPL is deeply oversold after the sell‑off; contrarian pieces and technical analyses argue support levels could attract buyers. Should You Buy The Dip In PayPal Stock?
• Positive Sentiment: A handful of firms kept constructive views (or less bearish stances) despite cuts to targets, arguing PayPal’s cash flow, buyback capacity and long‑term position in payments give upside if execution restores growth. Analyst notes and reiterations
• Neutral Sentiment: Board appointed Enrique Lores (former HP CEO and PayPal board chair) as incoming CEO (effective March 1) with Jamie Miller interim — a major leadership shift whose impact is uncertain: it may reassure some investors but also signals the board’s dissatisfaction with past execution. PayPal Appoints Enrique Lores as CEO
• Neutral Sentiment: PayPal announced a modest quarterly dividend (small yield) — positive for income‑seeking holders but unlikely to move the stock materially given current execution concerns.
• Negative Sentiment: Q4 results missed expectations (adjusted EPS $1.23 vs. ~$1.29 est.; revenue ~$8.68B vs. ~$8.8B) and management lowered near‑term profit guidance for 2026 — the primary catalyst for the price decline. Q4 results and call
• Negative Sentiment: Multiple analysts cut price targets or downgraded ratings after the quarter and CEO change, increasing sell pressure and reducing near‑term institutional support. Analyst downgrades and price‑target changes
• Negative Sentiment: Shareholder/legal risk rose: several law firms have opened securities‑fraud investigations probing the gap between prior outlooks and results, adding uncertainty and potential headline risk. Securities investigation notice
• Negative Sentiment: Public criticism from former PayPal leaders and commentary about slowing branded‑checkout and transactions‑per‑account growth have amplified concerns that PayPal’s core growth engine is stalling. Former exec criticism

About PayPal

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.