PayPal (NASDAQ:PYPL) Stock Price Down 2.1% – Here’s Why

PayPal Holdings, Inc. (NASDAQ:PYPL)’s share price traded down 2.1% during trading on Thursday. The company traded as low as $58.32 and last traded at $58.96. Approximately 11,170,795 shares traded hands during mid-day trading, a decline of 35% from the average session volume of 17,061,473 shares. The stock had previously closed at $60.20.

Key Headlines Impacting PayPal

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: PayPal was among the fintech names that advanced on Nov. 4 as the sector rallied after Block reported better-than-expected results and raised its outlook. The follow-through may be limited, however, as fintech shares came under pressure again the next day. Block Surges 16% on Earnings Beat and Raised Outlook; SoFi and PayPal Advance 4%
• Positive Sentiment: New PayPal data highlights demand from Singapore shoppers for gaming and fashion purchases from international businesses, including merchants in the U.S. and Germany and emerging markets such as Mexico and Vietnam. This suggests cross-border commerce opportunities ahead of the holiday season, though the data is not a report of PayPal’s financial results. New PayPal Data: Gaming and Fashion From Singapore Drive International Consumer Demand
• Neutral Sentiment: PayPal is holding up better than several fintech peers amid a selloff tied to falling cryptocurrency prices and potential policy uncertainty under a new Congress. The article frames this as relative resilience, not a company-specific catalyst. Fintech Stocks Fall as Bitcoin Slides and Congress Weighs on the Sector
• Negative Sentiment: Freedom Broker downgraded PayPal from Buy to Hold and cut its price target to $63 from $72, citing a failure by branded checkout to reaccelerate. This is the clearest company-specific negative catalyst in the recent coverage. Freedom Broker Cuts PayPal to Hold as Branded Checkout Stalls

Analyst Upgrades and Downgrades

PYPL has been the topic of a number of recent analyst reports. Deutsche Bank Aktiengesellschaft restated a “hold” rating and issued a $55.00 price target on shares of PayPal in a report on Friday, September 25th. Susquehanna boosted their price objective on shares of PayPal from $63.00 to $67.00 and gave the stock a “positive” rating in a research note on Wednesday, July 29th. Wells Fargo & Company increased their target price on shares of PayPal from $48.00 to $56.00 and gave the company an “equal weight” rating in a research report on Wednesday, July 29th. Morgan Stanley raised their target price on shares of PayPal from $45.00 to $46.00 and gave the company an “underweight” rating in a research note on Wednesday, October 28th. Finally, William Blair reaffirmed a “market perform” rating on shares of PayPal in a report on Wednesday, July 15th. Eight research analysts have rated the stock with a Buy rating, thirty-two have issued a Hold rating and six have given a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock has an average rating of “Hold” and a consensus target price of $55.94.

PayPal Stock Performance

The business has a 50 day simple moving average of $55.20 and a 200 day simple moving average of $50.07. The company has a quick ratio of 1.26, a current ratio of 1.26 and a debt-to-equity ratio of 0.56. The company has a market capitalization of $48.98 billion, a PE ratio of 11.25, a PEG ratio of 1.20 and a beta of 1.33.

PayPal (NASDAQ:PYPL) last issued its quarterly earnings results on Tuesday, October 27th. The credit services provider reported $1.45 earnings per share for the quarter, topping the consensus estimate of $1.31 by $0.14. PayPal had a return on equity of 24.39% and a net margin of 13.78%. The business had revenue of $8.58 billion during the quarter, compared to the consensus estimate of $8.71 billion. During the same quarter last year, the company earned $1.34 earnings per share. The company’s quarterly revenue was up 2.0% on a year-over-year basis. Equities research analysts predict that PayPal Holdings, Inc. will post 5.59 EPS for the current fiscal year.

PayPal Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, December 24th. Investors of record on Friday, December 4th will be given a $0.14 dividend. This represents a $0.56 annualized dividend and a dividend yield of 0.9%. The ex-dividend date of this dividend is Friday, December 4th. PayPal’s dividend payout ratio (DPR) is presently 10.69%.

Insider Buying and Selling

In other PayPal news, insider Suzan Kereere sold 3,379 shares of the company’s stock in a transaction that occurred on Thursday, September 3rd. The shares were sold at an average price of $55.72, for a total transaction of $188,277.88. Following the transaction, the insider owned 30,983 shares in the company, valued at approximately $1,726,372.76. This represents a 9.83% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Chris Natali sold 552 shares of the firm’s stock in a transaction on Thursday, September 3rd. The stock was sold at an average price of $54.80, for a total transaction of $30,249.60. Following the completion of the transaction, the chief accounting officer directly owned 2,400 shares of the company’s stock, valued at approximately $131,520. This represents a 18.70% decrease in their position. 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 13,437 shares of company stock worth $768,417 in the last three months. Corporate insiders own 0.63% of the company’s stock.

Institutional Investors Weigh In On PayPal

A number of large investors have recently made changes to their positions in the stock. BlackRock Inc. acquired a new stake in PayPal during the 2nd quarter worth about $3,236,989,000. Bank of America Corp DE acquired a new position in shares of PayPal in the second quarter valued at about $975,563,000. Primecap Management Co. CA acquired a new position in shares of PayPal in the second quarter valued at about $422,092,000. Corient Private Wealth LP purchased a new position in shares of PayPal in the second quarter worth about $20,758,000. Finally, Amundi raised its stake in shares of PayPal by 227.6% in the first quarter. Amundi now owns 13,804,208 shares of the credit services provider’s stock worth $624,364,000 after purchasing an additional 9,590,488 shares during the last quarter. 68.32% of the stock is owned by hedge funds and other institutional investors.

About PayPal

PayPal Holdings, Inc operates a global digital payments platform that enables consumers and businesses to send, receive, and manage money online and through mobile devices. Its services support online checkout, peer-to-peer payments, money transfers, payment processing, invoicing, and other commerce-related transactions.

The company’s portfolio includes the PayPal and Venmo brands, Braintree’s payment processing technology, and Xoom’s international money transfer service. PayPal also offers merchant tools, digital wallets, payment solutions, and consumer financing products through its platform and related services.

PayPal traces its origins to 1998 and became an independent publicly traded company after separating from eBay in 2015.