PayPal (NASDAQ:PYPL) Trading Down 1.8% on Analyst Downgrade

PayPal Holdings, Inc. (NASDAQ:PYPL)’s stock price traded down 1.8% during mid-day trading on Thursday after Rothschild Redb downgraded the stock from a hold rating to a strong sell rating. The stock traded as low as $52.53 and last traded at $53.11. 19,392,082 shares traded hands during trading, an increase of 26% from the average session volume of 15,445,856 shares. The stock had previously closed at $54.08.

A number of other brokerages also recently issued reports on PYPL. Redburn Partners set a $50.00 price objective on PayPal in a research report on Wednesday. Monness Crespi & Hardt lowered shares of PayPal from a “buy” rating to a “neutral” rating in a report on Monday, January 5th. Sanford C. Bernstein restated a “market perform” rating on shares of PayPal in a research report on Wednesday, December 17th. Weiss Ratings reissued a “hold (c)” rating on shares of PayPal in a report on Thursday, January 22nd. Finally, Canaccord Genuity Group lifted their price objective on PayPal from $96.00 to $100.00 and gave the stock a “buy” rating in a research report on Wednesday, October 29th. Twelve research analysts have rated the stock with a Buy rating, twenty-four have assigned a Hold rating and six have given a Sell rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average price target of $73.10.

Insider Activity at PayPal

In related news, EVP Aaron Webster sold 9,282 shares of the stock in a transaction 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 $2,366,486.71. This trade represents a 20.64% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, insider Suzan Kereere sold 12,500 shares of the company’s stock in a transaction dated Monday, November 3rd. The shares were sold at an average price of $68.87, for a total transaction of $860,875.00. Following the transaction, the insider owned 30,983 shares in the company, valued at $2,133,799.21. This represents a 28.75% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 25,944 shares of company stock worth $1,725,233. Insiders own 0.08% of the company’s stock.

Key Stories Impacting PayPal

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: Cantor Fitzgerald upgraded PayPal, offering a near-term supportive data point that some investors may view as a counterbalance to recent negative analyst actions. PayPal (NASDAQ:PYPL) Upgraded at Cantor Fitzgerald
• Positive Sentiment: Bullish commentary (The Motley Fool) argues 2026 could be a breakout year for PayPal driven by a large new partnership and product momentum—this is a thematic positive for longer-term investor sentiment. Prediction: 2026 Will Be the Year of PayPal
• Neutral Sentiment: Analysts and previews emphasize that PayPal’s Q4 earnings (Feb. 3) and forward guidance are the next major catalysts — results could swing the stock either way depending on volumes, margins and guidance. Paypal (PYPL) Q4 Earnings Preview: What You Should Know Beyond the Headline Estimates
• Neutral Sentiment: Coverage highlighting PayPal’s role in shaping the Nasdaq-100 digital commerce narrative underscores strategic importance but is not an immediate price driver. PayPal (NASDAQ:PYPL) Shapes Nasdaq 100 Index Narrative on Digital Commerce
• Neutral Sentiment: Macro and industry discussions (e.g., bitcoin commentary from a former PayPal executive) are interesting context but have limited direct impact on PYPL near-term performance. Bitcoin Could Hit $1.1 Million To $1.5M, Former PayPal President Says
• Negative Sentiment: Rothschild & Co Redburn downgraded PayPal to a Sell/strong-sell stance — a high-profile downgrade that has been cited as a primary driver of the intraday weakness. Rothschild & Co Redburn Downgrades PayPal (NASDAQ:PYPL) to Sell
• Negative Sentiment: Multiple firms have trimmed targets or warned on volumes (HSBC cut its price target; Truist lowered its PT and flagged difficult volume comps), increasing downward pressure on consensus expectations. HSBC Lowers PayPal (NASDAQ:PYPL) Price Target to $72.00
• Negative Sentiment: Analyst-driven sell-side momentum has pushed shares to a new 52-week low and produced several short-term sell calls — accelerating the decline and higher trading volume. PayPal (NASDAQ:PYPL) Hits New 52-Week Low on Analyst Downgrade
• Negative Sentiment: Analysts and commentators note a ~23% three‑month slide driven by competition, tariffs and rising expenses; while product initiatives offer hope, near-term operational headwinds are pressuring multiples. PayPal Plunges 23.3% in 3 Months: Time to Buy, Sell or Hold the Stock?

Institutional Trading of PayPal

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. Hilltop National Bank bought a new position in PayPal in the 2nd quarter worth $27,000. MUFG Securities EMEA plc raised its position in PayPal by 100.4% during the second 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 period. Kelleher Financial Advisors purchased a new stake in PayPal during the 3rd quarter valued at $30,000. Cloud Capital Management LLC purchased a new stake in shares of PayPal in the third quarter valued at $30,000. Finally, VSM Wealth Advisory LLC purchased a new stake in PayPal in the 2nd quarter worth about $36,000. Hedge funds and other institutional investors own 68.32% of the company’s stock.

PayPal Stock Performance

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 firm has a fifty day moving average price of $59.03 and a two-hundred day moving average price of $65.50. The stock has a market capitalization of $49.30 billion, a PE ratio of 10.56, a P/E/G ratio of 0.66 and a beta of 1.42.

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

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.