PayPal (NASDAQ:PYPL) Raised to “Outperform” at Daiwa Securities Group

PayPal (NASDAQ:PYPL) was upgraded by stock analysts at Daiwa Securities Group to an “outperform” rating in a research note issued on Wednesday,MarketScreener reports.

Several other analysts also recently commented on the stock. KGI Securities reaffirmed a “hold” rating and set a $55.00 target price on shares of PayPal in a report on Monday, March 2nd. Jefferies Financial Group reissued a “hold” rating on shares of PayPal in a report on Wednesday, January 7th. Dbs Bank raised PayPal to a “hold” rating in a report on Friday, February 6th. Rothschild & Co Redburn dropped their target price on PayPal from $50.00 to $32.00 and set a “sell” rating for the company in a report on Wednesday, February 11th. Finally, Argus cut their price objective on shares of PayPal from $87.00 to $65.00 and set a “buy” rating for the company in a report on Friday, February 6th. Eight research analysts have rated the stock with a Buy rating, thirty-two have issued a Hold rating and five have issued a Sell rating to the company’s stock. According to data from MarketBeat, PayPal currently has an average rating of “Hold” and a consensus price target of $56.53.

PayPal Trading Up 1.4%

PYPL opened at $47.15 on Wednesday. The company has a debt-to-equity ratio of 0.49, a quick ratio of 1.29 and a current ratio of 1.29. The firm has a market cap of $42.41 billion, a PE ratio of 8.71, a price-to-earnings-growth ratio of 1.45 and a beta of 1.39. PayPal has a twelve month low of $38.46 and a twelve month high of $79.50. The firm’s fifty day moving average is $46.73 and its two-hundred day moving average is $54.28.

PayPal (NASDAQ:PYPL) last released its earnings results on Tuesday, May 5th. The credit services provider reported $1.34 EPS for the quarter, beating the consensus estimate of $1.27 by $0.07. PayPal had a return on equity of 25.42% and a net margin of 15.77%.The firm had revenue of $8.35 billion for the quarter, compared to analysts’ expectations of $8.05 billion. During the same quarter in the previous year, the business posted $1.33 EPS. The business’s quarterly revenue was up 7.2% compared to the same quarter last year. Equities research analysts anticipate that PayPal will post 5.31 EPS for the current year.

Insider Buying and Selling

In other news, insider Suzan Kereere sold 13,515 shares of the firm’s stock in a transaction that occurred on Tuesday, March 3rd. The shares were sold at an average price of $46.02, for a total transaction of $621,960.30. Following the completion of the sale, the insider owned 30,983 shares of the company’s stock, valued at $1,425,837.66. This trade represents a 30.37% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this link. Also, insider Frank Keller sold 10,732 shares of PayPal stock in a transaction on Wednesday, April 29th. The shares were sold at an average price of $49.96, for a total transaction of $536,170.72. Following the completion of the sale, the insider directly owned 41,567 shares of the company’s stock, valued at approximately $2,076,687.32. This trade represents a 20.52% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 99,677 shares of company stock valued at $4,433,834 over the last 90 days. Company insiders own 0.63% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the stock. Allspring Global Investments Holdings LLC boosted its position in shares of PayPal by 8.5% during the 1st quarter. Allspring Global Investments Holdings LLC now owns 43,864 shares of the credit services provider’s stock valued at $1,958,000 after acquiring an additional 3,421 shares during the last quarter. Independent Financial Group LLC bought a new stake in shares of PayPal during the 1st quarter worth $275,000. Aware Super Pty Ltd as trustee of Aware Super purchased a new position in PayPal in the first quarter worth $25,205,000. Wealthfront Advisers LLC increased its stake in PayPal by 31.2% in the first quarter. Wealthfront Advisers LLC now owns 86,907 shares of the credit services provider’s stock valued at $3,931,000 after acquiring an additional 20,661 shares during the last quarter. Finally, Illinois Municipal Retirement Fund raised its position in PayPal by 12.2% during the first quarter. Illinois Municipal Retirement Fund now owns 83,547 shares of the credit services provider’s stock valued at $3,779,000 after purchasing an additional 9,114 shares in the last quarter. 68.32% of the stock is owned by institutional investors.

Trending Headlines about PayPal

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: Q1 beat on core metrics: PayPal reported higher-than-expected revenue and EPS, with TPV growth and revenue up year-over-year, showing platform momentum despite margin pressure. PayPal Reports First Quarter 2026 Results
• Positive Sentiment: Management is pushing an AI-led transformation and a reorganization into three business units (payments, ads/commerce, merchant connectivity) and launching commerce-focused AI products — moves that could restore growth if execution succeeds. PayPal says it’s ‘becoming a technology company again.’ That means AI.
• Positive Sentiment: Cost-cutting plan: PayPal targets at least $1.5B in savings over 2–3 years to offset margin pressure — a meaningful tempo for improving profitability if achieved. PayPal Q1 2026 net income drops 14% amid cost-savings push
• Neutral Sentiment: International opportunity: Industry reports note improving cross‑border payment rails (e.g., Nigeria) and local partnerships that could expand PayPal’s addressable market, but these are longer‑term tailwinds. Nigeria Cards and Payments Market Report 2026
• Neutral Sentiment: Dividend: PayPal announced a small quarterly dividend (annualized yield ~1.2%), a signal of capital return but not a major catalyst for growth investors.
• Negative Sentiment: Weak near-term outlook: Management flagged a significant near-term EPS decline (company expects lower non‑GAAP profit), and investors punished the stock despite the beat — a primary driver of the sell-off. PayPal shares fall as it signals profit decline ahead
• Negative Sentiment: User engagement and growth concerns plus restructuring/labor actions (layoffs reported) raise execution risk; several firms reiterated Sell/negative views, amplifying downside pressure. PayPal User Growth Stalls, Stock Plummets
• Negative Sentiment: Market volatility: unusually large options trades and analyst skepticism are increasing short-term volatility and limiting a quick rebound. Analysts Reiterated Sell Ratings Despite Q1 Beat

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.