PayPal (NASDAQ:PYPL) Reaches New 12-Month Low After Earnings Miss

Shares of PayPal Holdings, Inc. (NASDAQ:PYPL) reached a new 52-week low on Tuesday following a dissappointing earnings announcement. The company traded as low as $42.30 and last traded at $42.9390, with a volume of 33773113 shares trading hands. The stock had previously closed at $52.33.

The credit services provider reported $1.23 earnings per share for the quarter, missing the consensus estimate of $1.29 by ($0.06). The business had revenue of $8.68 billion for the quarter, compared to the consensus estimate of $8.82 billion. PayPal had a net margin of 15.77% and a return on equity of 25.42%. The firm’s revenue for the quarter was up 4.0% on a year-over-year basis. During the same quarter in the previous year, the firm earned $1.19 EPS.

PayPal Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, March 25th. Shareholders of record on Wednesday, March 4th will be issued a $0.14 dividend. 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 currently 11.22%.

Key Stories Impacting PayPal

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

Analyst Ratings Changes

PYPL has been the topic of a number of research reports. Rothschild Redb cut PayPal from a “hold” rating to a “strong sell” rating in a research report on Wednesday, January 28th. Sanford C. Bernstein reaffirmed a “market perform” rating on shares of PayPal in a report on Wednesday, December 17th. BTIG Research reissued a “neutral” rating on shares of PayPal in a research note on Tuesday. Evercore ISI dropped their price target on shares of PayPal from $65.00 to $40.00 and set an “in-line” rating on the stock in a research note on Tuesday. Finally, William Blair reaffirmed a “market perform” rating on shares of PayPal in a report on Tuesday. Ten 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. Based on data from MarketBeat, the company presently has a consensus rating of “Hold” and an average target price of $62.88.

Insider Buying and Selling

In other news, insider Suzan Kereere sold 4,162 shares of the firm’s stock in a transaction on 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 of the company’s stock, valued at $1,854,022.72. This trade represents a 11.84% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, EVP Aaron Webster sold 9,282 shares of the company’s stock in a transaction on Monday, November 10th. The shares were 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 approximately $2,366,486.71. This represents a 20.64% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 0.08% of the stock is owned by insiders.

Institutional Trading of PayPal

A number of hedge funds have recently bought and sold shares of PYPL. Brighton Jones LLC boosted its position in shares of PayPal by 15.2% in 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 period. Revolve Wealth Partners LLC purchased a new position in PayPal during the 4th quarter valued at about $248,000. Sivia Capital Partners LLC grew its stake in 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 in the last quarter. Hilltop National Bank acquired a new position in shares of PayPal in the 2nd quarter valued at about $27,000. Finally, Wealthcare Advisory Partners LLC lifted its position in shares of PayPal by 20.2% in the second 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 in the last quarter. 68.32% of the stock is owned by hedge funds and other institutional investors.

PayPal Stock Down 1.6%

The company has a quick ratio of 1.34, a current ratio of 1.29 and a debt-to-equity ratio of 0.49. The firm has a market capitalization of $38.39 billion, a PE ratio of 7.58, a price-to-earnings-growth ratio of 0.52 and a beta of 1.43. The business’s 50-day moving average price is $58.06 and its 200-day moving average price is $64.85.

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.