Cantor Fitzgerald Cuts PayPal (NASDAQ:PYPL) Price Target to $42.00

PayPal (NASDAQ:PYPL) had its price objective lowered by Cantor Fitzgerald from $60.00 to $42.00 in a report issued on Monday morning,Benzinga reports. Cantor Fitzgerald currently has a neutral rating on the credit services provider’s stock.

Several other equities research analysts have also commented on PYPL. Citizens Jmp reiterated a “market perform” rating on shares of PayPal in a research report on Wednesday, February 4th. UBS Group reaffirmed a “neutral” rating and issued a $44.00 price target on shares of PayPal in a report on Wednesday, February 4th. Mizuho set a $60.00 price objective on PayPal in a research report on Wednesday, February 4th. Argus lowered their target price on PayPal from $87.00 to $65.00 and set a “buy” rating on the stock in a report on Friday, February 6th. Finally, Royal Bank Of Canada cut their price target on PayPal from $91.00 to $59.00 and set an “outperform” rating for the company in a report on Wednesday, February 4th. Ten investment analysts have rated the stock with a Buy rating, thirty have given a Hold rating and four have given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average price target of $61.03.

PayPal Stock Down 2.4%

PYPL stock opened at $40.49 on Monday. The company has a current ratio of 1.29, a quick ratio of 1.29 and a debt-to-equity ratio of 0.49. The company’s 50-day moving average price is $55.91 and its 200 day moving average price is $63.59. PayPal has a 52 week low of $38.88 and a 52 week high of $79.50. The company has a market cap of $37.28 billion, a P/E ratio of 7.48, a P/E/G ratio of 1.07 and a beta of 1.43.

PayPal (NASDAQ:PYPL) last posted its quarterly earnings results on Tuesday, February 3rd. The credit services provider reported $1.23 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.29 by ($0.06). The company had revenue of $8.68 billion for the quarter, compared to analyst estimates of $8.82 billion. PayPal had a net margin of 15.77% and a return on equity of 25.42%. PayPal’s revenue was up 4.0% on a year-over-year basis. During the same quarter in the previous year, the business posted $1.19 earnings per share. On average, research analysts expect that PayPal will post 5.03 earnings per share for the current fiscal year.

PayPal Announces Dividend

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 given a dividend of $0.14 per share. The ex-dividend date is Wednesday, March 4th. This represents a $0.56 annualized dividend and a yield of 1.4%. PayPal’s dividend payout ratio is 10.35%.

Insider Activity

In related news, EVP Frank Keller sold 3,478 shares of the firm’s stock in a transaction that occurred on Friday, February 6th. The shares were sold at an average price of $40.20, for a total value of $139,815.60. Following the sale, the executive vice president directly owned 51,567 shares of the company’s stock, valued at approximately $2,072,993.40. This trade represents a 6.32% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Suzan Kereere sold 4,162 shares of the company’s stock in a transaction that occurred on Wednesday, November 19th. The stock was sold at an average price of $59.84, for a total transaction of $249,054.08. Following the transaction, the insider directly owned 30,983 shares of the company’s stock, valued at $1,854,022.72. This trade represents a 11.84% decrease in their position. The disclosure for this sale is available in the SEC filing. 0.08% of the stock is owned by insiders.

Hedge Funds Weigh In On PayPal

A number of hedge funds have recently made changes to their positions in PYPL. Primecap Management Co. CA increased its holdings in shares of PayPal by 22.3% during the 4th quarter. Primecap Management Co. CA now owns 8,168,490 shares of the credit services provider’s stock worth $476,876,000 after buying an additional 1,487,560 shares during the last quarter. Empowered Funds LLC grew its position in PayPal by 282.9% during the fourth quarter. Empowered Funds LLC now owns 391,469 shares of the credit services provider’s stock valued at $22,854,000 after acquiring an additional 289,232 shares during the period. Meeder Advisory Services Inc. increased its stake in PayPal by 8.2% during the fourth quarter. Meeder Advisory Services Inc. now owns 14,073 shares of the credit services provider’s stock worth $822,000 after acquiring an additional 1,061 shares during the last quarter. Inceptionr LLC raised its holdings in shares of PayPal by 88.0% in the 4th quarter. Inceptionr LLC now owns 7,229 shares of the credit services provider’s stock worth $422,000 after purchasing an additional 3,384 shares during the period. Finally, M Holdings Securities Inc. acquired a new position in shares of PayPal in the 4th quarter valued at about $2,246,000. Institutional investors and hedge funds own 68.32% of the company’s stock.

Key Headlines Impacting PayPal

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: New CEO / strategy reset — Coverage highlights Enrique Lores being tapped to steady the company and a push into embedded payments that could justify a re‑rating if execution improves. Read More.
• Positive Sentiment: Value/short‑cover narratives — Several writeups argue PYPL is oversold after the sell‑off and could attract value buyers or short‑squeeze activity if fundamentals or execution signals recover. Read More.
• Neutral Sentiment: Daiwa trims target but stays neutral — Daiwa cut its PT to $42 and kept a neutral rating, moderating upside expectations without adding a fresh sell signal. Read More.
• Neutral Sentiment: Zacks / other trackers boosting visibility — PYPL shows up on trending/most‑watched lists, which raises trading volume and volatility but doesn’t change core fundamentals. Read More.
• Negative Sentiment: Q4 earnings and guidance shock — PayPal reported Q4 EPS and revenue below Street expectations, which triggered the initial sell‑off and underpins near‑term skepticism about growth and execution. Read More.
• Negative Sentiment: Analyst downgrades and steep PT cuts — Multiple firms cut targets and issued sell/neutral calls (Rothschild & Co Redburn cut to $32 with a sell, Truist to $39 sell, Bernstein to $45, etc.), reinforcing downside pressure. Read More.
• Negative Sentiment: Securities‑investigation headlines — Litigation firms (Kessler Topaz and others) announced probes into PayPal related to the timing of the CEO change and the earnings shock, adding legal risk and prolonging volatility. Read More.
• Negative Sentiment: Critical commentary from ex‑management — Former PayPal president David Marcus publicly criticized execution and urged urgency on fixes, which amplifies investor concerns about governance and turnaround timelines. Read More.
• Negative Sentiment: Insider selling — An EVP disclosed a sale of shares last week, which some investors interpret as a modest negative signal amid the broader uncertainty. Read More.

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.