PayPal (NASDAQ:PYPL) Shares Down 1.6% After Earnings Miss

PayPal Holdings, Inc. (NASDAQ:PYPL)’s share price fell 1.6% during trading on Wednesday following a dissappointing earnings announcement. The stock traded as low as $39.96 and last traded at $41.03. 57,739,096 shares were traded during mid-day trading, an increase of 146% from the average session volume of 23,434,873 shares. The stock had previously closed at $41.70.

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

PayPal Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, March 25th. Shareholders of record on Wednesday, March 4th will be issued a dividend of $0.14 per share. This represents a $0.56 annualized dividend and a dividend yield of 1.4%. The ex-dividend date of this dividend is Wednesday, March 4th. PayPal’s dividend payout ratio is 10.35%.

Key Stories Impacting PayPal

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: Company announced discretionary buybacks and a new dividend, which provide near-term support for the stock and signal management willingness to return capital to shareholders. PayPal: Double-Digit Buybacks…
• Positive Sentiment: Some value-focused analysts and commentary argue the stock is deeply oversold and presents a buying opportunity at current depressed multiples. Should You Buy The Dip In PayPal Stock?
• Neutral Sentiment: PayPal remains a core fintech name within the Nasdaq/sector narrative, meaning it could benefit from any tech/fintech rotation back into the space. PayPal Remains Central…
• Neutral Sentiment: Recent analyst research reports vary — some maintain Hold/Neutral with reduced targets while others keep positive stances after trimming forecasts; this divergence is contributing to volatile intraday trading. Analyst Report: PayPal Holdings Inc
• Negative Sentiment: Q4 results missed EPS and revenue expectations and management issued a materially lower 2026 profit outlook — the core catalyst that started the rout. PayPal Replaces CEO…
• Negative Sentiment: Board ousted CEO Alex Chriss and appointed new leadership (reports name HP’s Enrique Lores), creating near-term execution uncertainty. PayPal replaces CEO Alex Chriss…
• Negative Sentiment: Multiple firms cut price targets and downgraded the stock following the miss/CEO change — increasing selling pressure and reducing analyst support. These PayPal Analysts Downgrade…
• Negative Sentiment: Shareholder class-action / securities-fraud investigations have been announced by multiple law firms tied to the gap between prior guidance and results, which can increase legal overhang and investor risk. Investigation Examines Gap…
• Negative Sentiment: Momentum/technical damage: PYPL has hit multiyear lows, with heavy volume and a cascade of retail/quant selling amplifying downside. Reaches New 12-Month Low After Earnings Miss

Wall Street Analyst Weigh In

A number of research firms have recently commented on PYPL. Canaccord Genuity Group reiterated a “hold” rating and set a $42.00 target price (down from $100.00) on shares of PayPal in a research report on Wednesday. Keefe, Bruyette & Woods lifted their price objective on shares of PayPal from $85.00 to $90.00 and gave the stock an “outperform” rating in a research note on Wednesday, October 29th. Compass Point upgraded shares of PayPal from a “sell” rating to a “neutral” rating and set a $51.00 target price on the stock in a report on Wednesday. Rothschild & Co Redburn downgraded shares of PayPal from a “neutral” rating to a “sell” rating and set a $50.00 price target for the company. in a report on Wednesday, January 28th. Finally, Jefferies Financial Group reiterated a “hold” rating on shares of PayPal in a research report on Wednesday, January 7th. Ten analysts have rated the stock with a Buy rating, thirty-one have issued a Hold rating and five have given a Sell rating to the company’s stock. According to MarketBeat.com, the company has an average rating of “Hold” and a consensus price target of $62.88.

Insider Transactions at PayPal

In other news, insider Suzan Kereere sold 4,162 shares of PayPal stock in a transaction that occurred on Wednesday, November 19th. The shares were sold at an average price of $59.84, for a total transaction of $249,054.08. Following the completion of the sale, the insider owned 30,983 shares of the company’s stock, valued at approximately $1,854,022.72. The trade was a 11.84% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, EVP Aaron Webster sold 9,282 shares of PayPal 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 trade represents a 20.64% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Company insiders own 0.08% of the company’s stock.

Institutional Trading of PayPal

Several hedge funds have recently modified their holdings of the company. Brighton Jones LLC grew its position in PayPal by 15.2% during the 4th quarter. Brighton Jones LLC now owns 6,989 shares of the credit services provider’s stock worth $596,000 after purchasing an additional 924 shares during the last quarter. Revolve Wealth Partners LLC purchased a new stake in shares of PayPal during the fourth quarter valued at $248,000. Sivia Capital Partners LLC grew its holdings in shares of PayPal by 41.5% during the second quarter. Sivia Capital Partners LLC now owns 4,470 shares of the credit services provider’s stock valued at $332,000 after buying an additional 1,310 shares during the last quarter. Wealthcare Advisory Partners LLC increased its position in shares of PayPal by 20.2% in the 2nd quarter. Wealthcare Advisory Partners LLC now owns 9,157 shares of the credit services provider’s stock valued at $681,000 after acquiring an additional 1,541 shares during the period. Finally, DAVENPORT & Co LLC raised its stake in PayPal by 11.1% in the 2nd quarter. DAVENPORT & Co LLC now owns 13,156 shares of the credit services provider’s stock worth $978,000 after acquiring an additional 1,311 shares during the last quarter. 68.32% of the stock is owned by hedge funds and other institutional investors.

PayPal Trading Down 2.8%

The company has a current ratio of 1.29, a quick ratio of 1.34 and a debt-to-equity ratio of 0.49. The stock has a 50-day simple moving average of $57.62 and a 200 day simple moving average of $64.67. The company has a market cap of $36.73 billion, a price-to-earnings ratio of 7.38, a PEG ratio of 0.64 and a beta of 1.43.

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.