PayPal (NASDAQ:PYPL) Stock Price Down 2.4% on Analyst Downgrade

PayPal Holdings, Inc. (NASDAQ:PYPL) shares traded down 2.4% during mid-day trading on Wednesday after Rothschild & Co Redburn lowered their price target on the stock from $50.00 to $32.00. Rothschild & Co Redburn currently has a sell rating on the stock. PayPal traded as low as $40.01 and last traded at $40.4920. 21,474,677 shares changed hands during mid-day trading, a decline of 13% from the average session volume of 24,549,203 shares. The stock had previously closed at $41.49.

A number of other research analysts have also issued reports on PYPL. Needham & Company LLC reiterated a “hold” rating on shares of PayPal in a research note on Tuesday, February 3rd. Canaccord Genuity Group reaffirmed a “hold” rating and issued a $42.00 price objective (down previously from $100.00) on shares of PayPal in a report on Wednesday, February 4th. Raymond James Financial set a $48.00 target price on PayPal in a research report on Tuesday, February 3rd. HSBC cut PayPal from a “buy” rating to a “hold” rating and set a $47.00 price target for the company. in a report on Wednesday, February 4th. Finally, Truist Financial decreased their price target on PayPal from $58.00 to $39.00 and set a “sell” rating on the stock in a research note on Tuesday. Ten analysts have rated the stock with a Buy rating, thirty have issued a Hold rating and four have assigned a Sell rating to the company’s stock. According to data from MarketBeat, the company currently has a consensus rating of “Hold” and a consensus price target of $61.03.

Insider Buying and Selling

In other PayPal news, EVP Frank Keller sold 3,478 shares of the company’s stock in a transaction on Friday, February 6th. The stock was sold at an average price of $40.20, for a total value of $139,815.60. Following the sale, the executive vice president owned 51,567 shares of the company’s stock, valued at approximately $2,072,993.40. This represents a 6.32% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Suzan Kereere sold 4,162 shares of the firm’s stock in a transaction on Wednesday, November 19th. The shares were sold at an average price of $59.84, for a total value of $249,054.08. Following the completion of the transaction, the insider owned 30,983 shares of the company’s stock, valued at approximately $1,854,022.72. This represents a 11.84% decrease in their position. The SEC filing for this sale provides additional information. Corporate insiders own 0.08% of the company’s stock.

PayPal News Roundup

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.

Hedge Funds Weigh In On PayPal

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. MUFG Securities EMEA plc raised its position in shares of PayPal by 100.4% during the 2nd quarter. MUFG Securities EMEA plc now owns 385 shares of the credit services provider’s stock worth $29,000 after purchasing an additional 87,524 shares during the last quarter. Cloud Capital Management LLC purchased a new position in PayPal during the third quarter worth $30,000. Kelleher Financial Advisors acquired a new position in shares of PayPal in the third quarter worth $30,000. Advocate Investing Services LLC acquired a new position in shares of PayPal in the fourth quarter worth $30,000. Finally, Torren Management LLC acquired a new position in shares of PayPal in the fourth quarter worth $31,000. Institutional investors and hedge funds own 68.32% of the company’s stock.

PayPal Price Performance

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 market capitalization of $35.98 billion, a PE ratio of 7.22, a P/E/G ratio of 1.05 and a beta of 1.43. The company has a 50-day moving average price of $55.45 and a 200-day moving average price of $63.42.

PayPal (NASDAQ:PYPL) last posted its quarterly earnings data on Tuesday, February 3rd. The credit services provider reported $1.23 EPS for the quarter, missing analysts’ consensus estimates of $1.29 by ($0.06). The company had revenue of $8.68 billion for 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 quarter in the prior year, the business posted $1.19 EPS. Sell-side analysts forecast that PayPal Holdings, Inc. will post 5.03 EPS for the current year.

PayPal Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, March 25th. Investors of record on Wednesday, March 4th will be paid a $0.14 dividend. This represents a $0.56 annualized dividend and a yield of 1.4%. The ex-dividend date is Wednesday, March 4th. PayPal’s dividend payout ratio is presently 10.35%.

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.