Paypal (NASDAQ:PYPL) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a note issued to investors on Thursday. The firm presently has a $90.00 price target on the credit services provider’s stock. Zacks Investment Research‘s price objective suggests a potential upside of 13.88% from the stock’s current price.
According to Zacks, “PayPal continues to witness expanding customer base with the help of its robust Venmo, Choice and One Touch. Also, the company’s tie-up with MasterCard is aiding the adoption rate of Venmo. Further, the company’s ongoing partnership with ShinhanCard remains positive for its presence in South Korea. Also, its extended partnership with Google and eBay will continue to strengthen its customer base further. This will keep adding strength to PayPal’s total payments volume. We believe an expanding product & services portfolio and global presence will continue to benefit the company’s market share. Notably, shares of PayPal have outperformed the industry it belongs to over a year. However, continuous exposure to foreign exchange and interest rate risks are major concerns. Also, intensifying competition from major players in the finance and payment industry poses a risk to the company’s market position.”
Other equities research analysts also recently issued research reports about the stock. Credit Suisse Group boosted their target price on shares of Paypal from $93.00 to $100.00 and gave the stock a “$87.38” rating in a research report on Thursday, July 19th. Morgan Stanley boosted their target price on shares of Paypal from $89.00 to $96.00 and gave the stock a “$87.38” rating in a research report on Thursday, July 19th. SunTrust Banks boosted their target price on shares of Paypal to $92.00 and gave the stock a “$88.22” rating in a research report on Wednesday, July 18th. Stephens reissued a “buy” rating and issued a $91.00 target price on shares of Paypal in a research report on Friday, July 13th. Finally, Jefferies Financial Group initiated coverage on shares of Paypal in a research report on Tuesday, July 10th. They issued a “buy” rating and a $98.00 target price for the company. One investment analyst has rated the stock with a sell rating, seven have assigned a hold rating and thirty-three have issued a buy rating to the company. The stock currently has an average rating of “Buy” and a consensus price target of $91.89.
Paypal stock traded up $3.13 during midday trading on Thursday, hitting $79.03. 13,964,698 shares of the stock were exchanged, compared to its average volume of 8,617,697. The company has a market capitalization of $103.97 billion, a price-to-earnings ratio of 56.86, a price-to-earnings-growth ratio of 2.86 and a beta of 1.31. Paypal has a 1 year low of $66.16 and a 1 year high of $93.70.
Paypal (NASDAQ:PYPL) last released its earnings results on Wednesday, July 25th. The credit services provider reported $0.58 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $0.41 by $0.17. The company had revenue of $3.86 billion during the quarter, compared to the consensus estimate of $3.81 billion. Paypal had a net margin of 14.02% and a return on equity of 12.91%. The company’s revenue was up 23.0% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.46 EPS. As a group, sell-side analysts predict that Paypal will post 1.73 earnings per share for the current year.
In other Paypal news, COO William J. Ready sold 38,878 shares of the business’s stock in a transaction dated Friday, July 27th. The shares were sold at an average price of $88.22, for a total transaction of $3,429,817.16. Following the completion of the transaction, the chief operating officer now directly owns 119,215 shares of the company’s stock, valued at approximately $10,517,147.30. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO John D. Rainey sold 5,462 shares of the business’s stock in a transaction dated Friday, July 27th. The shares were sold at an average price of $88.22, for a total transaction of $481,857.64. Following the transaction, the chief financial officer now directly owns 113,307 shares of the company’s stock, valued at $9,995,943.54. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 149,732 shares of company stock valued at $13,204,157. Insiders own 0.20% of the company’s stock.
Institutional investors have recently bought and sold shares of the business. First Republic Investment Management Inc. boosted its stake in Paypal by 35.9% during the 2nd quarter. First Republic Investment Management Inc. now owns 305,703 shares of the credit services provider’s stock valued at $25,455,000 after purchasing an additional 80,765 shares during the period. Weatherly Asset Management L. P. boosted its stake in Paypal by 0.8% during the 2nd quarter. Weatherly Asset Management L. P. now owns 87,418 shares of the credit services provider’s stock valued at $7,279,000 after purchasing an additional 656 shares during the period. Canada Pension Plan Investment Board boosted its stake in Paypal by 18.9% during the 2nd quarter. Canada Pension Plan Investment Board now owns 1,434,018 shares of the credit services provider’s stock valued at $119,411,000 after purchasing an additional 227,908 shares during the period. New England Research & Management Inc. boosted its stake in Paypal by 10.2% during the 3rd quarter. New England Research & Management Inc. now owns 11,300 shares of the credit services provider’s stock valued at $993,000 after purchasing an additional 1,050 shares during the period. Finally, Clinton Group Inc. acquired a new position in Paypal during the 3rd quarter valued at about $9,249,000. 79.59% of the stock is owned by hedge funds and other institutional investors.
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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