PayPal (NASDAQ:PYPL) Research Coverage Started at Bank of America

Bank of America started coverage on shares of PayPal (NASDAQ:PYPL) in a research note issued to investors on Thursday. The firm issued an underperform rating on the credit services provider’s stock.

Several other research firms also recently issued reports on PYPL. Morgan Stanley set a $45.00 price target on PayPal in a research note on Wednesday, July 29th. Loop Capital dropped their target price on PayPal from $62.00 to $50.00 and set a “hold” rating for the company in a research note on Friday, August 28th. Mizuho set a $51.00 price target on shares of PayPal in a research note on Friday, August 28th. Piper Sandler lifted their price objective on PayPal from $42.00 to $59.00 and gave the company a “neutral” rating in a research note on Monday, August 17th. Finally, Truist Financial decreased their price target on PayPal from $62.00 to $53.00 and set a “hold” rating for the company in a report on Monday, August 31st. Nine investment analysts have rated the stock with a Buy rating, thirty-three have issued a Hold rating and five have issued a Sell rating to the company. According to MarketBeat.com, PayPal has an average rating of “Hold” and a consensus target price of $56.28.

PayPal Stock Performance

Shares of PayPal stock opened at $56.70 on Thursday. The company has a quick ratio of 1.29, a current ratio of 1.29 and a debt-to-equity ratio of 0.55. The firm’s 50 day moving average is $56.00 and its two-hundred day moving average is $50.55. The firm has a market capitalization of $48.50 billion, a P/E ratio of 10.72, a P/E/G ratio of 1.21 and a beta of 1.27. PayPal has a 52 week low of $38.46 and a 52 week high of $79.21.

PayPal (NASDAQ:PYPL) last announced 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 return on equity of 24.39% and a net margin of 14.36%. The firm had revenue of $8.68 billion during the quarter, compared to analysts’ expectations of $8.47 billion. During the same period in the prior year, the firm earned $1.40 EPS. The business’s revenue was up 4.8% on a year-over-year basis. Research analysts forecast that PayPal will post 5.38 EPS for the current fiscal year.

PayPal Announces Dividend

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

Insider Activity

In related news, CAO Chris Natali sold 552 shares of the stock in a transaction on Thursday, September 3rd. The stock was sold at an average price of $54.80, for a total value of $30,249.60. Following the completion of the transaction, the chief accounting officer owned 2,400 shares in the company, valued at $131,520. This trade represents a 18.70% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Frank Keller sold 4,612 shares of PayPal stock in a transaction dated Thursday, September 3rd. The stock was sold at an average price of $55.43, for a total value of $255,643.16. Following the completion of the transaction, the insider directly owned 41,567 shares in the company, valued at $2,304,058.81. This represents a 9.99% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 14,774 shares of company stock worth $848,095. Insiders own 0.63% of the company’s stock.

Institutional Trading of PayPal

Several institutional investors and hedge funds have recently bought and sold shares of PYPL. Mitsubishi UFJ Asset Management Co. Ltd. purchased a new stake in PayPal in the 2nd quarter worth about $97,372,000. S&CO Inc. bought a new stake in PayPal during the 2nd quarter worth approximately $18,827,000. Swiss National Bank raised its position in shares of PayPal by 4.9% in the first quarter. Swiss National Bank now owns 2,608,600 shares of the credit services provider’s stock worth $117,987,000 after buying an additional 121,400 shares in the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its position in shares of PayPal by 2.0% during the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 6,593,196 shares of the credit services provider’s stock valued at $284,694,000 after acquiring an additional 128,426 shares during the last quarter. Finally, International Assets Investment Management LLC grew its stake in PayPal by 76.0% in the 1st quarter. International Assets Investment Management LLC now owns 54,458 shares of the credit services provider’s stock worth $2,430,000 after buying an additional 23,516 shares in the last quarter. Institutional investors and hedge funds own 68.32% of the company’s stock.

Key PayPal News

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: AI-shopping partnership expands PayPal’s growth opportunity. PayPal is partnering with Glance to integrate agentic commerce tools, AI-powered product discovery, virtual try-ons, real-time product information and native checkout. The service is expected to reach tens of millions of U.S. consumers across mobile and TV devices, potentially increasing transaction volume and merchant adoption. PayPal Teams Up with Glance to Turn AI Shopping Discovery into Instant Purchases
• Positive Sentiment: Value-oriented investors may see upside. PayPal is trading at less than 10 times expected earnings, while the company continues to generate respectable growth. Greenlight Capital’s David Einhorn also reportedly established a new position, providing a favorable signal from a prominent activist-oriented investor. Is PayPal Stock a Buy at Less Than 10 Times Next Year’s Earnings Guidance?
• Neutral Sentiment: Recent market performance was positive but not a fundamental catalyst. PayPal outperformed the broader market in the latest reported session, although the move largely reflects trading performance rather than a new earnings announcement. PayPal Outperforms Broader Market
• Negative Sentiment: Bank of America resumed coverage with an Underperform/Sell-equivalent rating and a $53 price target. The target implies approximately 5.5% downside from the recently reported trading level, adding analyst pressure to the shares. BofA Issues Sell Rating on PayPal
• Negative Sentiment: Investors remain concerned about PayPal’s long-term competitive position. Commentary points to the stock’s substantial decline from its 2021 peak and the increasing use of alternative payment platforms, which could limit growth despite the company’s attractive valuation. Is PayPal Stock a Buy, Sell, or Hold?

PayPal Company Profile

PayPal Holdings, Inc operates a global digital payments platform that enables consumers and businesses to send, receive, and manage money online and through mobile devices. Its services support online checkout, peer-to-peer payments, money transfers, digital wallets, and payment processing for merchants.

The company’s principal consumer brands include PayPal and Venmo, while its merchant and commerce offerings include Braintree, PayPal Zettle, and PayPal Complete Payments. PayPal also operates Xoom, a service for international money transfers, and Honey, a shopping and rewards platform.