PayPal (NASDAQ:PYPL) Sets New 1-Year Low Following Analyst Downgrade

PayPal Holdings, Inc. (NASDAQ:PYPL)’s share price hit a new 52-week low during mid-day trading on Thursday after Zacks Research downgraded the stock from a hold rating to a strong sell rating. The company traded as low as $38.49 and last traded at $38.6710, with a volume of 13040611 shares changing hands. The stock had previously closed at $40.46.

Several other equities analysts also recently weighed in on PYPL. Argus dropped their price objective on PayPal from $87.00 to $65.00 and set a “buy” rating for the company in a research note on Friday, February 6th. Citigroup cut their price target on shares of PayPal from $60.00 to $42.00 and set a “neutral” rating on the stock in a research note on Wednesday, February 4th. Dbs Bank upgraded shares of PayPal to a “hold” rating in a research note on Friday, February 6th. JPMorgan Chase & Co. dropped their target price on PayPal from $70.00 to $46.00 and set a “neutral” rating on the stock in a report on Wednesday, February 4th. Finally, Wall Street Zen downgraded shares of PayPal from a “buy” rating to a “hold” rating in a research note on Sunday, January 18th. Ten investment analysts have rated the stock with a Buy rating, thirty have issued a Hold rating and five have given a Sell rating to the company’s stock. According to data from MarketBeat, the stock has a consensus rating of “Hold” and a consensus target price of $61.03.

Insider Activity at PayPal

In related news, insider Suzan Kereere sold 4,162 shares of the company’s stock in a transaction that occurred 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 sale, the insider directly 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 transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, EVP Frank Keller sold 3,478 shares of the firm’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 transaction, the executive vice president owned 51,567 shares in the company, valued at $2,072,993.40. This trade represents a 6.32% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Corporate insiders own 0.08% of the company’s stock.

Key Headlines Impacting PayPal

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: PayPal announced an agentic AI travel partnership with Sabre and Mindtrip — a move that highlights PayPal’s AI and commerce strategy and could expand payments volume in travel and bookings. Sabre, PayPal, and Mindtrip partner
• Positive Sentiment: Coverage notes Venmo momentum and PayPal’s AI investments as potential growth drivers vs. competitors — these business positives may support a longer-term recovery if execution improves. PayPal vs. Block
• Neutral Sentiment: Analysts and outlets are parsing next steps after the Q4 miss and CEO transition; pieces summarize strategic options but offer no immediate catalyst. What’s next after Q4 crash
• Negative Sentiment: Multiple law firms (Kessler Topaz; Pomerantz) have opened investor investigations into PayPal, increasing legal/liability risk and weighing on sentiment. Kessler Topaz investigation notice Pomerantz investor alert
• Negative Sentiment: Analysts have cut ratings and targets — Zacks moved PayPal to a “Strong Sell” and several firms trimmed EPS/price targets (e.g., Daiwa to $42) — pressuring the stock. Zacks downgrade Daiwa cuts price target
• Negative Sentiment: Market commentary highlights the scale of recent share losses and lingering execution issues; retail sentiment has turned bearish and shares have plunged year-to-date. Execution crisis coverage
• Negative Sentiment: Revenue missed expectations and management change was flagged after Q4, creating short-term uncertainty around guidance and execution. Revenue miss & CEO change

Institutional Investors Weigh In On PayPal

Institutional investors have recently modified their holdings of the business. National Pension Service grew its stake in PayPal by 1.8% during the third quarter. National Pension Service now owns 2,855,897 shares of the credit services provider’s stock worth $191,516,000 after purchasing an additional 51,268 shares during the period. Merit Financial Group LLC boosted its holdings in shares of PayPal by 15.5% during the 3rd quarter. Merit Financial Group LLC now owns 164,901 shares of the credit services provider’s stock worth $11,058,000 after buying an additional 22,139 shares in the last quarter. Nordea Investment Management AB grew its position in shares of PayPal by 7.9% during the 3rd quarter. Nordea Investment Management AB now owns 4,292,583 shares of the credit services provider’s stock worth $291,338,000 after buying an additional 313,180 shares during the period. Rakuten Investment Management Inc. bought a new stake in shares of PayPal in the 3rd quarter valued at $13,210,000. Finally, Ariose Capital Management Ltd lifted its position in shares of PayPal by 347.0% during the 3rd quarter. Ariose Capital Management Ltd now owns 193,100 shares of the credit services provider’s stock valued at $12,949,000 after acquiring an additional 149,898 shares during the period. Institutional investors own 68.32% of the company’s stock.

PayPal Stock Performance

The company has a quick ratio of 1.29, a current ratio of 1.29 and a debt-to-equity ratio of 0.49. The firm has a market capitalization of $37.09 billion, a P/E ratio of 7.45, a price-to-earnings-growth ratio of 1.01 and a beta of 1.43. The company’s 50 day moving average is $55.01 and its 200-day moving average is $63.16.

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 the consensus estimate of $1.29 by ($0.06). The company had revenue of $8.68 billion for the quarter, compared to analyst estimates of $8.82 billion. PayPal had a net margin of 15.77% and a return on equity of 25.42%. PayPal’s revenue for the quarter was up 4.0% on a year-over-year basis. During the same quarter in the prior year, the company posted $1.19 EPS. As a group, equities analysts anticipate that PayPal Holdings, Inc. will post 5.03 EPS for the current year.

PayPal Announces Dividend

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

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.