PayPal (NASDAQ:PYPL) Stock Price Down 2.1% – Here’s Why

PayPal Holdings, Inc. (NASDAQ:PYPL)’s stock price was down 2.1% during mid-day trading on Thursday. The company traded as low as $58.32 and last traded at $58.96. Approximately 11,170,795 shares changed hands during trading, a decline of 35% from the average session volume of 17,061,473 shares. The stock had previously closed at $60.20.

Key Headlines Impacting PayPal

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: PayPal was among the fintech names that advanced on Nov. 4 as the sector rallied after Block reported better-than-expected results and raised its outlook. The follow-through may be limited, however, as fintech shares came under pressure again the next day. Block Surges 16% on Earnings Beat and Raised Outlook; SoFi and PayPal Advance 4%
• Positive Sentiment: New PayPal data highlights demand from Singapore shoppers for gaming and fashion purchases from international businesses, including merchants in the U.S. and Germany and emerging markets such as Mexico and Vietnam. This suggests cross-border commerce opportunities ahead of the holiday season, though the data is not a report of PayPal’s financial results. New PayPal Data: Gaming and Fashion From Singapore Drive International Consumer Demand
• Neutral Sentiment: PayPal is holding up better than several fintech peers amid a selloff tied to falling cryptocurrency prices and potential policy uncertainty under a new Congress. The article frames this as relative resilience, not a company-specific catalyst. Fintech Stocks Fall as Bitcoin Slides and Congress Weighs on the Sector
• Negative Sentiment: Freedom Broker downgraded PayPal from Buy to Hold and cut its price target to $63 from $72, citing a failure by branded checkout to reaccelerate. This is the clearest company-specific negative catalyst in the recent coverage. Freedom Broker Cuts PayPal to Hold as Branded Checkout Stalls

Wall Street Analysts Forecast Growth

Several brokerages have recently weighed in on PYPL. BNP Paribas Exane raised their price target on PayPal from $43.50 to $52.00 and gave the company a “neutral” rating in a report on Tuesday, July 21st. William Blair reiterated a “market perform” rating on shares of PayPal in a research note on Wednesday, July 15th. Canaccord Genuity Group reiterated a “hold” rating and issued a $55.00 price target on shares of PayPal in a research note on Wednesday, October 28th. Royal Bank Of Canada raised their price objective on shares of PayPal from $65.00 to $70.00 and gave the company an “outperform” rating in a research note on Monday, August 31st. Finally, BTIG Research reaffirmed a “neutral” rating on shares of PayPal in a report on Tuesday, October 27th. Eight research analysts have rated the stock with a Buy rating, thirty-two have issued a Hold rating and six have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus price target of $55.94.

PayPal Stock Down 2.1%

The company has a 50 day moving average price of $55.20 and a two-hundred day moving average price of $50.07. The company has a debt-to-equity ratio of 0.56, a current ratio of 1.26 and a quick ratio of 1.26. The stock has a market cap of $48.98 billion, a PE ratio of 11.25, a PEG ratio of 1.20 and a beta of 1.33.

PayPal (NASDAQ:PYPL) last announced its quarterly earnings results on Tuesday, October 27th. The credit services provider reported $1.45 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.31 by $0.14. PayPal had a return on equity of 24.39% and a net margin of 13.78%. The firm had revenue of $8.58 billion for the quarter, compared to the consensus estimate of $8.71 billion. During the same period in the prior year, the company posted $1.34 earnings per share. The company’s quarterly revenue was up 2.0% on a year-over-year basis. Analysts expect that PayPal Holdings, Inc. will post 5.59 EPS for the current year.

PayPal Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, December 24th. Stockholders of record on Friday, December 4th will be paid a $0.14 dividend. The ex-dividend date is Friday, December 4th. This represents a $0.56 dividend on an annualized basis and a dividend yield of 0.9%. PayPal’s payout ratio is currently 10.69%.

Insider Activity

In other news, insider Suzan Kereere sold 4,162 shares of the business’s stock in a transaction that occurred on Tuesday, August 18th. The shares were sold at an average price of $60.96, for a total transaction of $253,715.52. Following the completion of the transaction, the insider directly owned 30,983 shares of the company’s stock, valued at $1,888,723.68. The trade was a 11.84% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Chris Natali sold 552 shares of the stock in a transaction that occurred on Thursday, September 3rd. The shares were sold at an average price of $54.80, for a total transaction of $30,249.60. Following the transaction, the chief accounting officer owned 2,400 shares in the company, valued at approximately $131,520. This trade represents a 18.70% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 13,437 shares of company stock valued at $768,417 over the last three months. Insiders own 0.63% of the company’s stock.

Hedge Funds Weigh In On PayPal

Several hedge funds and other institutional investors have recently modified their holdings of PYPL. Illinois Municipal Retirement Fund lifted its holdings in PayPal by 9.9% during the third quarter. Illinois Municipal Retirement Fund now owns 104,623 shares of the credit services provider’s stock worth $5,496,000 after buying an additional 9,424 shares during the period. Allspring Global Investments Holdings LLC increased its holdings in shares of PayPal by 4.0% in the 3rd quarter. Allspring Global Investments Holdings LLC now owns 42,741 shares of the credit services provider’s stock valued at $2,268,000 after acquiring an additional 1,654 shares during the period. International Assets Investment Management LLC raised its position in shares of PayPal by 47.1% in the 3rd quarter. International Assets Investment Management LLC now owns 76,000 shares of the credit services provider’s stock worth $3,992,000 after acquiring an additional 24,332 shares in the last quarter. Covestor Ltd raised its position in shares of PayPal by 35.8% in the 3rd quarter. Covestor Ltd now owns 3,949 shares of the credit services provider’s stock worth $207,000 after acquiring an additional 1,040 shares in the last quarter. Finally, Rakuten Investment Management Inc. lifted its stake in shares of PayPal by 7.4% during the 3rd quarter. Rakuten Investment Management Inc. now owns 226,620 shares of the credit services provider’s stock worth $12,213,000 after purchasing an additional 15,668 shares during the last quarter. 68.32% of the stock is owned by institutional investors.

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, payment processing, invoicing, and other commerce-related transactions.

The company’s portfolio includes the PayPal and Venmo brands, Braintree’s payment processing technology, and Xoom’s international money transfer service. PayPal also offers merchant tools, digital wallets, payment solutions, and consumer financing products through its platform and related services.

PayPal traces its origins to 1998 and became an independent publicly traded company after separating from eBay in 2015.