PayPal (NASDAQ:PYPL) Shares Down 1.7% – Here’s What Happened

PayPal Holdings, Inc. (NASDAQ:PYPL) was down 1.7% during trading on Tuesday . The company traded as low as $55.00 and last traded at $55.85. Approximately 14,147,331 shares changed hands during trading, a decline of 29% from the average session volume of 19,817,729 shares. The stock had previously closed at $56.82.

Key Stories Impacting PayPal

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: Takeover talk from Stripe and Advent is fueling the view that PayPal could be worth more than the current bid, potentially supporting the shares if negotiations continue or a higher offer emerges. PayPal Says a $53 Billion Takeover Offer from Stripe Undervalues It. How to Play PYPL Stock Here.
• Positive Sentiment: Commentary from market observers suggests PayPal is at a strategic crossroads, and new leadership or restructuring could unlock value for shareholders. Analyst Stays on Sidelines for PYPL Despite Stripe, Advent Buyout Offer
• Neutral Sentiment: Wall Street expects a modest earnings decline in the upcoming quarter, which keeps attention on whether PayPal can stabilize growth. Earnings Preview: Paypal (PYPL) Q2 Earnings Expected to Decline
• Neutral Sentiment: Broader coverage notes that PayPal remains a heavily watched stock, but investor sentiment is being driven more by takeover headlines than by fresh operating updates. PayPal Holdings, Inc. (PYPL) Is a Trending Stock: Facts to Know Before Betting on It
• Negative Sentiment: Reports that PayPal has lost share to competitors like Apple Pay highlight ongoing competitive pressure and help explain why the market is cautious about the company’s long-term standalone outlook. How PayPal went from Wall Street favorite to unwilling merger target

Wall Street Analyst Weigh In

PYPL has been the topic of a number of recent analyst reports. Weiss Ratings reissued a “hold (c-)” rating on shares of PayPal in a research note on Friday, May 8th. Zacks Research upgraded PayPal from a “strong sell” rating to a “hold” rating in a research note on Friday, April 17th. Daiwa Securities Group raised PayPal from a “hold” rating to an “outperform” rating in a report on Wednesday, May 6th. Deutsche Bank Aktiengesellschaft reduced their price target on shares of PayPal from $50.00 to $45.00 in a research report on Monday, May 11th. Finally, Piper Sandler decreased their price objective on shares of PayPal from $46.00 to $42.00 and set a “neutral” rating on the stock in a report on Monday, June 29th. Seven investment analysts have rated the stock with a Buy rating, thirty-four have given a Hold rating and five have given a Sell rating to the company. According to MarketBeat, PayPal presently has an average rating of “Hold” and an average target price of $54.61.

PayPal Price Performance

The stock has a 50-day simple moving average of $44.83 and a 200 day simple moving average of $47.13. The stock has a market capitalization of $49.27 billion, a P/E ratio of 10.48, a price-to-earnings-growth ratio of 1.41 and a beta of 1.33. The company has a debt-to-equity ratio of 0.47, a quick ratio of 1.26 and a current ratio of 1.26.

PayPal (NASDAQ:PYPL) last released its earnings results on Tuesday, May 5th. The credit services provider reported $1.34 earnings per share for the quarter, topping analysts’ consensus estimates of $1.27 by $0.07. PayPal had a return on equity of 25.02% and a net margin of 15.00%.The company had revenue of $8.35 billion during the quarter, compared to the consensus estimate of $8.05 billion. During the same quarter in the previous year, the company posted $1.33 earnings per share. The firm’s quarterly revenue was up 7.2% on a year-over-year basis. On average, equities analysts forecast that PayPal Holdings, Inc. will post 5.32 earnings per share for the current fiscal year.

PayPal Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, June 25th. Shareholders of record on Thursday, June 4th were issued a dividend of $0.14 per share. This represents a $0.56 annualized dividend and a yield of 1.0%. The ex-dividend date of this dividend was Thursday, June 4th. PayPal’s payout ratio is currently 10.51%.

Insider Buying and Selling at PayPal

In related news, insider Frank Keller sold 10,732 shares of the business’s stock in a transaction that occurred on Wednesday, April 29th. The shares were sold at an average price of $49.96, for a total transaction of $536,170.72. Following the completion of the sale, the insider directly owned 41,567 shares of the company’s stock, valued at $2,076,687.32. The trade was a 20.52% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Suzan Kereere sold 3,379 shares of the stock in a transaction that occurred on Wednesday, June 3rd. The shares were sold at an average price of $42.79, for a total transaction of $144,587.41. Following the completion of the transaction, the insider owned 30,983 shares in the company, valued at $1,325,762.57. This represents a 9.83% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 20,612 shares of company stock worth $966,623. Company insiders own 0.63% of the company’s stock.

Institutional Trading of PayPal

Institutional investors have recently bought and sold shares of the business. Maia Wealth LLC grew its holdings in PayPal by 2.5% in the third quarter. Maia Wealth LLC now owns 6,404 shares of the credit services provider’s stock valued at $424,000 after purchasing an additional 155 shares during the period. GeoWealth Management LLC raised its stake in shares of PayPal by 6.2% during the 3rd quarter. GeoWealth Management LLC now owns 3,214 shares of the credit services provider’s stock worth $216,000 after buying an additional 188 shares during the period. Harrell Investment Partners LLC raised its stake in shares of PayPal by 2.1% during the 4th quarter. Harrell Investment Partners LLC now owns 9,374 shares of the credit services provider’s stock worth $547,000 after buying an additional 189 shares during the period. Formidable Asset Management LLC lifted its position in shares of PayPal by 0.8% during the 1st quarter. Formidable Asset Management LLC now owns 25,937 shares of the credit services provider’s stock valued at $1,173,000 after buying an additional 205 shares in the last quarter. Finally, KPP Advisory Services LLC lifted its position in shares of PayPal by 3.3% during the 1st quarter. KPP Advisory Services LLC now owns 6,625 shares of the credit services provider’s stock valued at $300,000 after buying an additional 214 shares in the last quarter. Institutional investors and hedge funds own 68.32% of the company’s stock.

PayPal Company Profile

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.