PayPal (NASDAQ:PYPL) Shares Down 4.2% – What’s Next?

PayPal Holdings, Inc. (NASDAQ:PYPL)’s stock price was down 4.2% during mid-day trading on Friday . The stock traded as low as $57.32 and last traded at $59.14. Approximately 7,097,888 shares were traded during trading, a decline of 37% from the average daily volume of 11,245,340 shares. The stock had previously closed at $61.71.

Analyst Ratings Changes

PYPL has been the subject of several research reports. BTIG Research reissued a “neutral” rating on shares of PayPal in a research note on Tuesday, February 4th. Barclays upped their target price on shares of PayPal from $92.00 to $110.00 and gave the company an “overweight” rating in a research report on Tuesday, December 17th. Arete Research set a $81.00 price target on shares of PayPal in a research note on Thursday, March 27th. Bank of America upgraded shares of PayPal from a “neutral” rating to a “buy” rating and increased their price objective for the company from $86.00 to $103.00 in a report on Monday, December 9th. Finally, JPMorgan Chase & Co. reissued an “overweight” rating on shares of PayPal in a research note on Tuesday, February 4th. Sixteen research analysts have rated the stock with a hold rating, twenty have given a buy rating and one has given a strong buy rating to the company. According to MarketBeat.com, PayPal currently has an average rating of “Moderate Buy” and an average target price of $89.13.

PayPal Stock Down 5.4 %

The company has a quick ratio of 1.26, a current ratio of 1.26 and a debt-to-equity ratio of 0.48. The firm has a 50 day moving average of $74.26 and a 200 day moving average of $80.61. The firm has a market cap of $57.73 billion, a price-to-earnings ratio of 14.55, a PEG ratio of 1.27 and a beta of 1.60.

PayPal (NASDAQ:PYPL) last released its quarterly earnings data on Tuesday, February 4th. The credit services provider reported $1.19 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.11 by $0.08. PayPal had a net margin of 13.04% and a return on equity of 23.67%. The company had revenue of $8.37 billion for the quarter, compared to analysts’ expectations of $8.27 billion. During the same quarter in the prior year, the firm earned $1.48 EPS. The business’s revenue was up 4.2% on a year-over-year basis. As a group, sell-side analysts predict that PayPal Holdings, Inc. will post 5.03 earnings per share for the current year.

Insider Buying and Selling at PayPal

In related news, Director Gail J. Mcgovern sold 2,446 shares of the business’s stock in a transaction dated Thursday, February 27th. The shares were sold at an average price of $72.15, for a total value of $176,478.90. Following the transaction, the director now directly owns 29,734 shares of the company’s stock, valued at approximately $2,145,308.10. The trade was a 7.60 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Company insiders own 0.14% of the company’s stock.

Institutional Investors Weigh In On PayPal

Institutional investors have recently added to or reduced their stakes in the business. Norges Bank bought a new stake in PayPal during the 4th quarter valued at $1,086,508,000. Capital Research Global Investors lifted its holdings in PayPal by 108.2% during the 4th quarter. Capital Research Global Investors now owns 17,924,106 shares of the credit services provider’s stock worth $1,529,823,000 after purchasing an additional 9,313,783 shares in the last quarter. Artisan Partners Limited Partnership boosted its stake in PayPal by 284.0% in the 4th quarter. Artisan Partners Limited Partnership now owns 7,804,334 shares of the credit services provider’s stock worth $666,100,000 after purchasing an additional 5,772,198 shares during the period. World Investment Advisors LLC bought a new stake in shares of PayPal during the third quarter valued at about $387,435,000. Finally, Robeco Institutional Asset Management B.V. boosted its position in shares of PayPal by 174.1% in the fourth quarter. Robeco Institutional Asset Management B.V. now owns 4,233,341 shares of the credit services provider’s stock valued at $361,316,000 after acquiring an additional 2,689,162 shares during the period. 68.32% of the stock is owned by hedge funds and other institutional investors.

About PayPal

PayPal Holdings, Inc operates a technology platform that enables digital payments on behalf of merchants and consumers worldwide. It operates a two-sided network at scale that connects merchants and consumers that enables its customers to connect, transact, and send and receive payments through online and in person, as well as transfer and withdraw funds using various funding sources, such as bank accounts, PayPal or Venmo account balance, PayPal and Venmo branded credit products comprising its installment products, credit and debit cards, and cryptocurrencies, as well as other stored value products, including gift cards and eligible rewards.