PayPal (NASDAQ:PYPL) Shares Down 2.8% on Analyst Downgrade

PayPal Holdings, Inc. (NASDAQ:PYPL)’s share price was down 2.8% during trading on Thursday after Hsbc Global Res downgraded the stock from a strong-buy rating to a hold rating. The stock traded as low as $38.88 and last traded at $39.90. Approximately 42,411,972 shares were traded during mid-day trading, an increase of 75% from the average daily volume of 24,232,543 shares. The stock had previously closed at $41.03.

A number of other brokerages have also recently commented on PYPL. BTIG Research reiterated a “neutral” rating on shares of PayPal in a report on Tuesday. Dbs Bank cut their price objective on shares of PayPal from $75.00 to $70.00 and set a “hold” rating for the company in a research report on Thursday, November 13th. KeyCorp reiterated a “hold” rating on shares of PayPal in a report on Wednesday, October 22nd. Deutsche Bank Aktiengesellschaft decreased their target price on shares of PayPal from $75.00 to $65.00 and set a “hold” rating on the stock in a research report on Friday, December 5th. Finally, Citizens Jmp reissued a “market perform” rating on shares of PayPal in a research note on Wednesday. Ten equities research analysts have rated the stock with a Buy rating, thirty-one have assigned a Hold rating and five have issued a Sell rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus price target of $62.88.

Insider Buying and Selling at PayPal

In related news, EVP Aaron Webster sold 9,282 shares of the stock in a transaction dated Monday, November 10th. The stock was sold at an average price of $66.29, for a total value of $615,303.78. Following the completion of the transaction, the executive vice president owned 35,699 shares of the company’s stock, valued at approximately $2,366,486.71. This represents a 20.64% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this link. Also, insider Suzan Kereere sold 4,162 shares of PayPal stock in a transaction that occurred on Wednesday, November 19th. The stock was sold at an average price of $59.84, for a total value of $249,054.08. Following the sale, the insider owned 30,983 shares in the company, valued at $1,854,022.72. This represents a 11.84% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 0.08% of the stock is currently owned by corporate insiders.

Trending Headlines about PayPal

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: Company announced aggressive buybacks and a new quarterly dividend, which investors view as concrete capital-return support amid weak growth — this can limit downside and attract value/seeking-yield buyers. Double-Digit Buybacks Turn The Recent Crash Into An Opportunity
• Positive Sentiment: Some bullish commentators argue the share decline creates a deep-value opportunity for long-term investors if PayPal can stabilize execution — this narrative is attracting buy‑the‑dip interest. PayPal bulls set to win big as spooked investors ‘puke in the hole’: Analyst
• Neutral Sentiment: PayPal appointed HP veteran Enrique Lores as CEO — leadership change addresses board impatience but creates near-term uncertainty about strategic direction and execution. Market reaction has been mixed pending a clearer roadmap. PayPal names HP’s Enrique Lores to replace Alex Chriss as CEO
• Neutral Sentiment: Some firms trimmed targets but left ratings at Neutral/Hold (Compass Point, Citi adjustments), signaling that while downside is priced in, analysts await signs of a credible turnaround. PayPal faces Wall Street wrath as analysts slash price targets; retail calls PYPL ‘bruised’
• Negative Sentiment: Q4 results missed consensus (EPS and revenue) and management issued a weaker-than-expected 2026 profit outlook — that combination triggered the initial heavy sell-off and remains the primary short-term downward pressure. PayPal Stock Price Down 20.3% After Earnings Miss
• Negative Sentiment: Widespread analyst downgrades and price‑target cuts (JPMorgan, Citi, RBC, Morgan Stanley and others) followed the earnings/CEO news — analysts cite slowing checkout growth and execution issues, increasing selling pressure. PayPal Stock Forecast: Analysts Split As Growth Story Stalls
• Negative Sentiment: Regulatory/litigation risk has risen: two shareholder-law firms announced investigations into whether prior company guidance and results were inconsistent — this raises the prospect of legal overhang and additional reputational risk. PR Newswire: Investigation Examines Gap BusinessWire: Securities-Fraud Investigation Announced
• Negative Sentiment: Public criticism from former PayPal leaders and coverage arguing the company’s core “branded checkout” growth stalled add to investor skepticism about the firm’s ability to regain share. Former president slams the company Benzinga: Stock Of The Day

Institutional Investors Weigh In On PayPal

Institutional investors have recently made changes to their positions in the company. Norges Bank bought a new stake in PayPal during the second quarter valued at $921,570,000. Vanguard Group Inc. boosted its holdings in shares of PayPal by 6.5% during the fourth quarter. Vanguard Group Inc. now owns 90,376,927 shares of the credit services provider’s stock valued at $5,276,205,000 after acquiring an additional 5,534,462 shares during the period. Dimensional Fund Advisors LP lifted its position in PayPal by 35.9% in the 3rd quarter. Dimensional Fund Advisors LP now owns 8,177,536 shares of the credit services provider’s stock valued at $548,520,000 after purchasing an additional 2,160,227 shares during the last quarter. Lazard Asset Management LLC grew its position in PayPal by 1,066.0% in the 2nd quarter. Lazard Asset Management LLC now owns 2,106,215 shares of the credit services provider’s stock worth $156,532,000 after purchasing an additional 1,925,583 shares during the last quarter. Finally, Two Sigma Investments LP bought a new stake in shares of PayPal during the third quarter valued at approximately $97,794,000. 68.32% of the stock is currently owned by institutional investors.

PayPal Trading Down 2.8%

The firm has a 50-day moving average of $58.06 and a 200 day moving average of $64.85. The company has a current ratio of 1.29, a quick ratio of 1.34 and a debt-to-equity ratio of 0.49. The stock has a market capitalization of $37.33 billion, a price-to-earnings ratio of 7.38, a PEG ratio of 0.52 and a beta of 1.43.

PayPal (NASDAQ:PYPL) last released its quarterly earnings results on Tuesday, February 3rd. The credit services provider reported $1.23 EPS for the quarter, missing analysts’ consensus estimates of $1.29 by ($0.06). PayPal had a return on equity of 25.42% and a net margin of 15.77%.The company had revenue of $8.68 billion for the quarter, compared to the consensus estimate of $8.82 billion. During the same quarter last year, the firm posted $1.19 earnings per share. The firm’s quarterly revenue was up 4.0% compared to the same quarter last year. As a group, equities analysts predict that PayPal Holdings, Inc. will post 5.03 EPS for the current fiscal year.

PayPal Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, March 25th. Investors of record on Wednesday, March 4th will be issued a $0.14 dividend. This represents a $0.56 dividend on an annualized basis and a dividend yield of 1.4%. The ex-dividend date is Wednesday, March 4th. PayPal’s payout ratio is presently 10.35%.

About PayPal

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.