PayPal Holdings, Inc. (NASDAQ:PYPL) Receives Average Rating of “Hold” from Analysts

PayPal Holdings, Inc. (NASDAQ:PYPL) has earned an average recommendation of “Hold” from the forty-five ratings firms that are covering the firm, MarketBeat Ratings reports. Six research analysts have rated the stock with a sell rating, thirty-two have assigned a hold rating and seven have assigned a buy rating to the company. The average twelve-month price objective among brokers that have updated their coverage on the stock in the last year is $53.9054.

PYPL has been the topic of a number of research reports. Cantor Fitzgerald boosted their target price on shares of PayPal from $42.00 to $54.00 and gave the stock a “neutral” rating in a research report on Tuesday, May 5th. Mizuho reissued a “neutral” rating and issued a $50.00 price target (down from $60.00) on shares of PayPal in a report on Thursday, April 16th. Piper Sandler dropped their price objective on shares of PayPal from $46.00 to $42.00 and set a “neutral” rating on the stock in a report on Monday, June 29th. Deutsche Bank Aktiengesellschaft cut their price objective on shares of PayPal from $50.00 to $45.00 in a research report on Monday, May 11th. Finally, BNP Paribas Exane increased their target price on shares of PayPal from $41.00 to $43.50 and gave the company a “neutral” rating in a research note on Friday, April 10th.

Key Stories Impacting PayPal

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: PayPal expanded PYUSD to Polygon, giving its stablecoin native access to a large settlement network and potentially improving transaction utility for merchants and users. PayPal boosts its stablecoin as banks prepare to launch a shared one
• Positive Sentiment: Analysts and market commentary suggest the PYUSD launch on Polygon is helping sentiment around PYPL, as the move could increase stablecoin adoption and reinforce PayPal’s crypto strategy. PayPal Stock (PYPL) Ticks Up as PYUSD Goes Native on Polygon
• Positive Sentiment: PayPal’s continued PYUSD expansion via Paxos and Polygon highlights efforts to build a broader stablecoin settlement network, which may support future growth in payments and fintech services. PayPal’s PYUSD Stablecoin Arrives Natively on Polygon via Paxos Partnership
• Neutral Sentiment: PayPal also received a bearish analyst initiation from Barclays, but the rating change does not appear to be the main driver of today’s trading action. PayPal Holdings (PYPL) Gets a Sell from Barclays
• Neutral Sentiment: Broader market risk-off pressure weighed on financial stocks after geopolitical headlines, which may have created some short-term volatility in PYPL. PayPal, Ameriprise Financial, and Ally Financial Shares Are Falling, What You Need To Know
• Neutral Sentiment: PayPal is also being discussed for its AI-driven cost savings and BNPL growth strategy, but these items are more long-term than immediate stock catalysts. PayPal AI Push: Will $1.5B Savings Drive Faster Growth Ahead?

PayPal Price Performance

Shares of NASDAQ:PYPL opened at $45.32 on Friday. The company has a market cap of $39.98 billion, a price-to-earnings ratio of 8.50, a PEG ratio of 1.11 and a beta of 1.33. The business has a 50 day moving average price of $44.10 and a 200 day moving average price of $47.48. The company has a quick ratio of 1.26, a current ratio of 1.26 and a debt-to-equity ratio of 0.47. PayPal has a twelve month low of $38.46 and a twelve month high of $79.50.

PayPal (NASDAQ:PYPL) last issued its quarterly earnings results on Tuesday, May 5th. The credit services provider reported $1.34 EPS for the quarter, topping the consensus estimate of $1.27 by $0.07. PayPal had a return on equity of 25.02% and a net margin of 15.00%.The company had revenue of $8.35 billion for the quarter, compared to the consensus estimate of $8.05 billion. During the same period in the previous year, the business posted $1.33 EPS. The company’s revenue for the quarter was up 7.2% on a year-over-year basis. Research analysts predict that PayPal will post 5.32 earnings per share for the current year.

PayPal Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, June 25th. Shareholders of record on Thursday, June 4th were issued a dividend of $0.14 per share. This represents a $0.56 dividend on an annualized basis and a yield of 1.2%. The ex-dividend date of this dividend was Thursday, June 4th. PayPal’s payout ratio is presently 10.51%.

Insider Activity

In other news, insider Frank Keller sold 4,612 shares of the stock in a transaction that occurred on Wednesday, June 3rd. The stock was sold at an average price of $42.54, for a total value of $196,194.48. Following the completion of the transaction, the insider directly owned 41,567 shares of the company’s stock, valued at approximately $1,768,260.18. This represents a 9.99% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Chris Natali sold 1,337 shares of the firm’s stock in a transaction that occurred on Wednesday, April 29th. The stock was sold at an average price of $49.46, for a total value of $66,128.02. Following the transaction, the chief accounting officer owned 1,586 shares of the company’s stock, valued at $78,443.56. This trade represents a 45.74% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 20,612 shares of company stock worth $966,623. Company insiders own 0.63% of the company’s stock.

Institutional Investors Weigh In On PayPal

Several large investors have recently made changes to their positions in PYPL. Brighton Jones LLC raised its stake in shares of PayPal by 15.2% in the fourth quarter. Brighton Jones LLC now owns 6,989 shares of the credit services provider’s stock valued at $596,000 after acquiring an additional 924 shares during the last quarter. Revolve Wealth Partners LLC bought a new stake in PayPal during the 4th quarter worth approximately $248,000. Sivia Capital Partners LLC grew its position in PayPal by 41.5% during the 2nd quarter. Sivia Capital Partners LLC now owns 4,470 shares of the credit services provider’s stock worth $332,000 after acquiring an additional 1,310 shares during the last quarter. United Bank increased its holdings in PayPal by 40.1% during the 2nd quarter. United Bank now owns 17,388 shares of the credit services provider’s stock valued at $1,292,000 after purchasing an additional 4,974 shares in the last quarter. Finally, Federated Hermes Inc. increased its holdings in PayPal by 17.9% during the 2nd quarter. Federated Hermes Inc. now owns 18,909 shares of the credit services provider’s stock valued at $1,405,000 after purchasing an additional 2,865 shares in the last quarter. Institutional investors own 68.32% of the company’s stock.

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.