PayPal (NASDAQ:PYPL) Shares Down 1.9% on Analyst Downgrade

PayPal Holdings, Inc. (NASDAQ:PYPL) was down 1.9% during trading on Tuesday after Rothschild & Co Redburn downgraded the stock from a neutral rating to a sell rating. Rothschild & Co Redburn now has a $50.00 price target on the stock. PayPal traded as low as $55.21 and last traded at $55.51. Approximately 14,186,462 shares traded hands during mid-day trading, a decline of 5% from the average daily volume of 14,988,712 shares. The stock had previously closed at $56.60.

Several other analysts also recently issued reports on PYPL. KGI Securities cut their target price on shares of PayPal from $85.00 to $80.00 in a research note on Monday, November 10th. Needham & Company LLC reissued a “hold” rating on shares of PayPal in a research note on Tuesday, October 28th. Truist Financial set a $58.00 price objective on shares of PayPal in a report on Tuesday, January 20th. Keefe, Bruyette & Woods upped their target price on PayPal from $85.00 to $90.00 and gave the stock an “outperform” rating in a research report on Wednesday, October 29th. Finally, HSBC decreased their price target on shares of PayPal from $93.00 to $72.00 and set a “buy” rating for the company in a report on Tuesday. Twelve analysts have rated the stock with a Buy rating, twenty-four have issued a Hold rating and five have given a Sell rating to the stock. Based on data from MarketBeat.com, PayPal has an average rating of “Hold” and an average price target of $73.10.

Insider Buying and Selling

In other PayPal news, EVP Aaron Webster sold 9,282 shares of PayPal stock in a transaction that occurred on Monday, November 10th. The stock was sold at an average price of $66.29, for a total transaction 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. The trade was a 20.64% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Suzan Kereere sold 4,162 shares of the stock in a transaction that occurred on Wednesday, November 19th. The stock was sold at an average price of $59.84, for a total value of $249,054.08. Following the completion of the transaction, the insider directly 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 disclosure for this sale is available in the SEC filing. Insiders have sold 25,944 shares of company stock worth $1,725,233 over the last ninety days. Company insiders own 0.08% of the company’s stock.

More PayPal News

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: PayPal reported survey results showing rising merchant adoption of crypto payments (nearly 40% of U.S. merchants accept crypto), supporting PayPal’s payments/crypto strategy and potential revenue growth from new payment flows. Article Title
• Positive Sentiment: PayPal agreed to acquire e-commerce platform Cymbio to expand its agentic commerce push — an M&A move that could help broaden merchant services and drive long‑term GMV and revenue. Article Title
• Positive Sentiment: Coverage pieces note product expansion (gift cards, integrated tax filing) that could diversify revenue and increase engagement if executed well. Investors see this as incremental upside to payments and consumer services. Article Title
• Neutral Sentiment: Analysts expect Q4 results (reporting Feb 3). JPMorgan expects a revenue beat with in‑line earnings, so upcoming guidance and Q4 details will be closely watched. Article Title
• Neutral Sentiment: HSBC cut its price target from $93 to $72 but kept a Buy rating — a downgrade to the target that tempers upside expectations while still signaling conviction in the long term. Article Title
• Neutral Sentiment: Cantor Fitzgerald initiated coverage with a Neutral/Hold — another sign that some sell‑side desks view valuation and near‑term execution as balanced rather than a clear buy. Article Title
• Negative Sentiment: Rothschild & Co Redburn downgraded PayPal to Sell and cut the price target to $50, signaling near‑term downside risk (≈7–8% from current levels) and putting pressure on the stock ahead of earnings. Article Title
• Negative Sentiment: Critical analyst commentary and deep-dive pieces highlight a brutal competitive landscape and execution risks, which amplify investor concerns about growth sustainability and margin pressure. Article Title

Hedge Funds Weigh In On PayPal

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Hilltop National Bank bought a new position in shares of PayPal in the second quarter valued at approximately $27,000. MUFG Securities EMEA plc raised its position in PayPal by 100.4% in the 2nd quarter. MUFG Securities EMEA plc now owns 385 shares of the credit services provider’s stock valued at $29,000 after purchasing an additional 87,524 shares during the last quarter. Cloud Capital Management LLC acquired a new position in PayPal in the third quarter worth $30,000. Kelleher Financial Advisors acquired a new position in PayPal in the third quarter worth $30,000. Finally, True Wealth Design LLC grew its holdings in shares of PayPal by 285.3% during the third quarter. True Wealth Design LLC now owns 524 shares of the credit services provider’s stock worth $35,000 after purchasing an additional 388 shares during the last quarter. 68.32% of the stock is currently owned by institutional investors and hedge funds.

PayPal Stock Performance

The stock has a 50 day moving average price of $59.29 and a two-hundred day moving average price of $65.74. The company has a debt-to-equity ratio of 0.56, a current ratio of 1.34 and a quick ratio of 1.34. The company has a market capitalization of $50.60 billion, a price-to-earnings ratio of 10.84, a price-to-earnings-growth ratio of 0.69 and a beta of 1.42.

PayPal (NASDAQ:PYPL) last issued its quarterly earnings results on Tuesday, October 28th. The credit services provider reported $1.34 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.20 by $0.14. The business had revenue of $8.42 billion for the quarter, compared to the consensus estimate of $8.21 billion. PayPal had a net margin of 14.96% and a return on equity of 25.64%. The firm’s quarterly revenue was up 7.3% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.20 EPS. On average, analysts predict that PayPal Holdings, Inc. will post 5.03 EPS for the current fiscal year.

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.