Zacks Investment Research Lowers PayPal (PYPL) to Sell

PayPal (NASDAQ:PYPL) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued to clients and investors on Friday.

According to Zacks, “PayPal’s top-line is likely to get hurt as a result of eBay’s partnership discontinuation and selection of Adyen as its new primary payment processor. Notably, eBay accounts for 13% of PayPal’s total payment volume (TPV), thereby contributing a major portion to its total revenues. Moreover, continuous exposure to foreign exchange rate fluctuations and interest rate risks remain a concern. Further, rising competition in the global payment industry might affect the market position of the company. However, ongoing strategic partnerships of PayPal with Visa and MasterCard offer great flexibility to the customers and this remain positive. Notably, shares of the company have outperformed the industry it belongs to over a year.”

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Several other equities analysts have also issued reports on PYPL. Goldman Sachs reaffirmed a “buy” rating and issued a $90.00 price target (up previously from $80.00) on shares of PayPal in a research report on Thursday, December 21st. BidaskClub lowered PayPal from a “strong-buy” rating to a “buy” rating in a research report on Monday, December 25th. Vetr raised PayPal from a “buy” rating to a “strong-buy” rating and set a $82.59 price target for the company in a research report on Monday, January 1st. Mizuho reiterated a “hold” rating and issued a $75.00 price objective on shares of PayPal in a report on Thursday, January 4th. Finally, Cowen upgraded PayPal from a “market perform” rating to an “outperform” rating and lifted their price objective for the stock from $79.05 to $88.00 in a report on Tuesday, January 9th. One research analyst has rated the stock with a sell rating, nine have assigned a hold rating, thirty-three have given a buy rating and one has given a strong buy rating to the company’s stock. The stock currently has a consensus rating of “Buy” and an average target price of $78.28.

PayPal stock traded down $0.77 on Friday, hitting $78.92. 1,733,703 shares of the stock traded hands, compared to its average volume of 9,348,936. The firm has a market capitalization of $95,378.12, a P/E ratio of 56.77, a P/E/G ratio of 2.65 and a beta of 1.28. PayPal has a 1 year low of $43.60 and a 1 year high of $86.32.

PayPal (NASDAQ:PYPL) last posted its quarterly earnings results on Wednesday, January 31st. The credit services provider reported $0.55 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.52 by $0.03. The firm had revenue of $3.74 billion during the quarter, compared to analyst estimates of $3.64 billion. PayPal had a return on equity of 11.59% and a net margin of 13.71%. PayPal’s quarterly revenue was up 25.6% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.42 EPS. equities analysts expect that PayPal will post 1.73 EPS for the current year.

In other PayPal news, CFO John D. Rainey sold 50,977 shares of the business’s stock in a transaction dated Friday, February 2nd. The stock was sold at an average price of $77.68, for a total transaction of $3,959,893.36. Following the completion of the sale, the chief financial officer now directly owns 114,020 shares in the company, valued at approximately $8,857,073.60. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, COO William J. Ready sold 60,000 shares of the business’s stock in a transaction that occurred on Friday, February 2nd. The shares were sold at an average price of $77.68, for a total value of $4,660,800.00. Following the transaction, the chief operating officer now owns 95,944 shares of the company’s stock, valued at $7,452,929.92. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 222,413 shares of company stock valued at $17,321,428. Corporate insiders own 6.00% of the company’s stock.

Large investors have recently made changes to their positions in the stock. Arcadia Investment Management Corp MI grew its stake in shares of PayPal by 230.4% during the 4th quarter. Arcadia Investment Management Corp MI now owns 1,434 shares of the credit services provider’s stock valued at $106,000 after acquiring an additional 1,000 shares during the period. Truewealth LLC bought a new position in shares of PayPal during the 4th quarter valued at approximately $106,000. Front Row Advisors LLC bought a new position in shares of PayPal during the 4th quarter valued at approximately $111,000. Risk Paradigm Group LLC grew its stake in shares of PayPal by 282.5% during the 4th quarter. Risk Paradigm Group LLC now owns 1,530 shares of the credit services provider’s stock valued at $113,000 after acquiring an additional 1,130 shares during the period. Finally, D Orazio & Associates Inc. grew its stake in shares of PayPal by 142.9% during the 4th quarter. D Orazio & Associates Inc. now owns 1,700 shares of the credit services provider’s stock valued at $125,000 after acquiring an additional 1,000 shares during the period. Institutional investors own 80.58% of the company’s stock.

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PayPal Company Profile

PayPal Holdings, Inc operates as a technology platform company that enables digital and mobile payments on behalf of consumers and merchants worldwide. Its payment solutions include PayPal, PayPal Credit, Braintree, Venmo, Xoom, and Paydiant products. The company's platform allows consumers to shop by sending payments, withdraw funds to their bank accounts, and hold balances in their PayPal accounts in various currencies.

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