Daiwa Securities Group Cuts PayPal (NASDAQ:PYPL) Price Target to $42.00

PayPal (NASDAQ:PYPL) had its target price trimmed by Daiwa Securities Group from $61.00 to $42.00 in a research report sent to investors on Tuesday morning,MarketScreener reports. The brokerage currently has a neutral rating on the credit services provider’s stock.

A number of other research analysts have also weighed in on PYPL. HSBC lowered PayPal from a “buy” rating to a “hold” rating and set a $47.00 price objective for the company. in a research report on Wednesday, February 4th. Evercore cut their target price on PayPal from $65.00 to $40.00 and set an “in-line” rating on the stock in a research note on Tuesday, February 3rd. BTIG Research restated a “neutral” rating on shares of PayPal in a report on Tuesday, February 3rd. Morgan Stanley lowered their price target on PayPal from $50.00 to $34.00 and set an “underweight” rating for the company in a research report on Wednesday, February 4th. Finally, Truist Financial dropped their price target on shares of PayPal from $58.00 to $39.00 and set a “sell” rating on the stock in a research note on Tuesday. Ten research analysts have rated the stock with a Buy rating, thirty have given a Hold rating and four have issued a Sell rating to the stock. According to data from MarketBeat.com, PayPal currently has a consensus rating of “Hold” and an average price target of $61.03.

PayPal Trading Down 3.4%

Shares of NASDAQ PYPL opened at $39.08 on Tuesday. PayPal has a 1 year low of $38.46 and a 1 year high of $79.50. The company has a debt-to-equity ratio of 0.49, a current ratio of 1.29 and a quick ratio of 1.29. The firm has a 50-day moving average of $55.45 and a 200 day moving average of $63.42. The stock has a market cap of $35.98 billion, a P/E ratio of 7.22, a price-to-earnings-growth ratio of 1.05 and a beta of 1.43.

PayPal (NASDAQ:PYPL) last announced its quarterly earnings data 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). PayPal had a return on equity of 25.42% and a net margin of 15.77%.The business had revenue of $8.68 billion during the quarter, compared to analysts’ expectations of $8.82 billion. During the same quarter last year, the company posted $1.19 EPS. PayPal’s revenue for the quarter was up 4.0% compared to the same quarter last year. As a group, sell-side analysts expect that PayPal will post 5.03 EPS for the current fiscal year.

PayPal Announces Dividend

The firm 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 annualized dividend and a dividend yield of 1.4%. PayPal’s dividend payout ratio (DPR) is 10.35%.

Insider Transactions at PayPal

In other news, EVP Frank Keller sold 3,478 shares of PayPal stock in a transaction that occurred on Friday, February 6th. The shares were sold at an average price of $40.20, for a total value of $139,815.60. Following the completion of the sale, the executive vice president directly owned 51,567 shares in the company, valued at $2,072,993.40. The trade was a 6.32% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, insider Suzan Kereere sold 4,162 shares of the business’s 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 transaction, the insider directly owned 30,983 shares of the company’s stock, valued at $1,854,022.72. The trade was a 11.84% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 0.08% of the stock is currently owned by insiders.

Institutional Investors Weigh In On PayPal

Large investors have recently added to or reduced their stakes in the stock. MUFG Securities EMEA plc boosted its stake in shares of PayPal by 100.4% in the 2nd quarter. MUFG Securities EMEA plc now owns 385 shares of the credit services provider’s stock worth $29,000 after buying an additional 87,524 shares during the last quarter. Cloud Capital Management LLC purchased a new stake in PayPal during the third quarter valued at $30,000. Kelleher Financial Advisors bought a new position in PayPal in the third quarter valued at about $30,000. Advocate Investing Services LLC purchased a new position in PayPal in the fourth quarter worth about $30,000. Finally, Torren Management LLC purchased a new position in PayPal in the fourth quarter worth about $31,000. Institutional investors own 68.32% of the company’s stock.

PayPal News Summary

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: Strategic AI partnership — PayPal announced a collaboration with Sabre and Mindtrip to build an end‑to‑end agentic AI offering for travel, which could expand payments volume and embed PayPal into travel bookings. Read More.
• Neutral Sentiment: Leadership change and strategy push — PayPal named Enrique Lores (ex‑HP) as CEO amid a broader push into embedded/automotive payments; the move brings experienced leadership but also signals executive turnover during a tough performance period. Read More.
• Negative Sentiment: Investor litigation risk — Multiple law firms (Pomerantz LLP and Kessler Topaz) have opened investigations into PayPal on behalf of shareholders, increasing legal overhang and potential costs or distraction. Read More. Read More.
• Negative Sentiment: Analyst downgrades and price‑target cuts — Rothschild & Co. Redburn cut its price target to $32 and kept a sell rating; Zacks has also moved PYPL to a Strong Sell and trimmed EPS estimates after the earnings miss, increasing sell‑side pressure. Read More. Read More.
• Negative Sentiment: Underlying business weakness — Q4 results showed an EPS and revenue shortfall relative to consensus, analysts cut 2026–27 estimates, and several firms (Truist, Cantor Fitzgerald) issued pessimistic outlooks; commentary highlights near‑term execution and growth concerns. Read More.

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.