PayPal (NASDAQ:PYPL) Shares Down 1.2% After Insider Selling

PayPal Holdings, Inc. (NASDAQ:PYPL) fell 1.2% on Thursday after an insider sold shares in the company. The stock traded as low as $56.66 and last traded at $57.65. 11,674,640 shares traded hands during mid-day trading, a decline of 41% from the average session volume of 19,626,641 shares. The stock had previously closed at $58.35.

Specifically, insider Frank Keller sold 732 shares of the stock in a transaction dated Wednesday, July 29th. The shares were sold at an average price of $58.10, for a total value of $42,529.20. Following the completion of the transaction, the insider directly owned 41,567 shares of the company’s stock, valued at approximately $2,415,042.70. This trade represents a 1.73% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Chris Natali sold 1,337 shares of PayPal stock in a transaction that occurred on Wednesday, July 29th. The shares were sold at an average price of $58.10, for a total transaction of $77,679.70. Following the sale, the chief accounting officer owned 2,216 shares of the company’s stock, valued at approximately $128,749.60. The trade was a 37.63% 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.

Wall Street Analyst Weigh In

PYPL has been the topic of a number of research reports. Piper Sandler lowered their price target on PayPal from $46.00 to $42.00 and set a “neutral” rating on the stock in a report on Monday, June 29th. Barclays lifted their price objective on PayPal from $55.00 to $57.00 and gave the stock an “equal weight” rating in a report on Wednesday. William Blair reiterated a “market perform” rating on shares of PayPal in a research report on Wednesday, July 15th. Bank of America lowered their target price on PayPal from $55.00 to $53.00 and set a “neutral” rating on the stock in a report on Wednesday, May 6th. Finally, Wells Fargo & Company raised their price target on PayPal from $48.00 to $56.00 and gave the company an “equal weight” rating in a research report on Wednesday. Nine investment analysts have rated the stock with a Buy rating, thirty-four have given a Hold rating and four have issued a Sell rating to the company. According to data from MarketBeat, the stock presently has an average rating of “Hold” and an average target price of $55.50.

PayPal News Summary

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: PayPal’s second-quarter results exceeded expectations, with adjusted earnings per share of $1.38 versus the $1.28 consensus and revenue of $8.68 billion versus $8.47 billion expected. Management also raised its full-year outlook, citing improving branded checkout, Venmo expansion and cost savings. PayPal Shares Pause as Raised Guidance Validates Turnaround Narrative
• Positive Sentiment: Several analysts raised their price targets following the earnings report, including JPMorgan, TD Cowen, Citigroup and Keefe, Bruyette & Woods. The targets—ranging from the mid-$50s to $70—suggest some analysts see additional upside if PayPal sustains its operational improvements. JPMorgan Analyst Says PayPal Stock Could Rise
• Positive Sentiment: Value-focused commentary highlights PYPL’s relatively low earnings multiple, arguing that the valuation could provide support if the company converts its stronger guidance into consistent growth. PayPal: A Steal At Less Than 10x Earnings
• Neutral Sentiment: Analyst opinion remains mixed. Canaccord Genuity maintained a hold rating, while Wells Fargo increased its target to $56 but kept an equal-weight rating. The broader brokerage consensus remains “hold,” reflecting improved results but limited confidence in PayPal’s longer-term growth trajectory. Canaccord Gives PayPal a Hold Rating
• Neutral Sentiment: Speculation about takeover interest, including a reported bid involving Stripe and Advent International, could support valuation, but no transaction is confirmed and investors remain focused on PayPal’s standalone turnaround. Is Takeout Target PayPal a Buy?
• Negative Sentiment: Bearish analysis says PayPal’s substantial share-repurchase program has not translated into sustained stock-price gains, underscoring skepticism about capital allocation and the company’s growth prospects. PayPal’s $17 Billion Bet Against Wall Street
• Negative Sentiment: Investors continue to monitor margin pressure, branded-checkout execution and PayPal’s slower growth relative to major payments peers. Two insiders also sold shares under pre-arranged Rule 10b5-1 plans; the sales are relatively small but may add modest near-term caution. PayPal Insider Selling

PayPal Trading Down 0.8%

The business has a 50-day moving average of $47.03 and a 200 day moving average of $47.09. The stock has a market cap of $48.94 billion, a PE ratio of 10.81, a PEG ratio of 1.43 and a beta of 1.33. The company has a debt-to-equity ratio of 0.55, a quick ratio of 1.26 and a current ratio of 1.29.

PayPal (NASDAQ:PYPL) last released its earnings results on Tuesday, July 28th. The credit services provider reported $1.38 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.28 by $0.10. PayPal had a net margin of 14.36% and a return on equity of 24.39%. The company had revenue of $8.68 billion for the quarter, compared to analyst estimates of $8.47 billion. During the same period in the prior year, the firm earned $1.40 EPS. The firm’s quarterly revenue was up 4.8% on a year-over-year basis. Equities research analysts predict that PayPal Holdings, Inc. will post 5.35 EPS for the current fiscal year.

PayPal Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, September 25th. Stockholders of record on Friday, September 4th will be given a $0.14 dividend. This represents a $0.56 dividend on an annualized basis and a dividend yield of 1.0%. The ex-dividend date of this dividend is Friday, September 4th. PayPal’s payout ratio is currently 10.59%.

Hedge Funds Weigh In On PayPal

Institutional investors and hedge funds have recently modified their holdings of the company. Brighton Jones LLC raised its holdings in PayPal by 15.2% in the 4th quarter. Brighton Jones LLC now owns 6,989 shares of the credit services provider’s stock valued at $596,000 after acquiring an additional 924 shares during the last quarter. Revolve Wealth Partners LLC purchased a new position in shares of PayPal during the 4th quarter worth $248,000. Sivia Capital Partners LLC boosted its holdings in shares of PayPal by 41.5% during the second quarter. Sivia Capital Partners LLC now owns 4,470 shares of the credit services provider’s stock worth $332,000 after purchasing an additional 1,310 shares during the last quarter. United Bank boosted its holdings in shares of PayPal by 40.1% during the second quarter. United Bank now owns 17,388 shares of the credit services provider’s stock worth $1,292,000 after purchasing an additional 4,974 shares during the last quarter. Finally, Federated Hermes Inc. grew its position in shares of PayPal by 17.9% in the second quarter. Federated Hermes Inc. now owns 18,909 shares of the credit services provider’s stock valued at $1,405,000 after purchasing an additional 2,865 shares during the period. Hedge funds and other institutional investors 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.