PayPal (NASDAQ:PYPL) Downgraded to Strong Sell Rating by Rothschild Redb

PayPal (NASDAQ:PYPL) was downgraded by Rothschild Redb from a “hold” rating to a “strong sell” rating in a research report issued on Wednesday,Zacks.com reports.

PYPL has been the subject of several other reports. UBS Group dropped their target price on PayPal from $80.00 to $65.00 in a report on Wednesday, December 24th. Daiwa Capital Markets downgraded shares of PayPal from an “outperform” rating to a “neutral” rating and reduced their target price for the stock from $77.00 to $61.00 in a research note on Tuesday, January 13th. Rothschild & Co Redburn cut shares of PayPal from a “neutral” rating to a “sell” rating and set a $50.00 price target for the company. in a research note on Wednesday. Susquehanna reduced their price target on shares of PayPal from $94.00 to $90.00 and set a “positive” rating on the stock in a research report on Thursday, January 8th. Finally, Macquarie upped their price objective on PayPal from $95.00 to $100.00 and gave the company an “outperform” rating in a report on Wednesday, October 29th. Twelve analysts have rated the stock with a Buy rating, twenty-four have assigned a Hold rating and six have issued a Sell rating to the company. According to data from MarketBeat.com, PayPal has an average rating of “Hold” and an average price target of $73.10.

PayPal Price Performance

Shares of NASDAQ PYPL opened at $54.08 on Wednesday. The firm has a 50-day simple moving average of $59.29 and a 200-day simple moving average of $65.74. The company has a quick ratio of 1.34, a current ratio of 1.34 and a debt-to-equity ratio of 0.56. The stock has a market capitalization of $50.60 billion, a price-to-earnings ratio of 10.84, a price-to-earnings-growth ratio of 0.69 and a beta of 1.42. PayPal has a 52 week low of $53.65 and a 52 week high of $90.93.

PayPal (NASDAQ:PYPL) last released its quarterly earnings data on Tuesday, October 28th. The credit services provider reported $1.34 EPS for the quarter, beating analysts’ consensus estimates of $1.20 by $0.14. The company had revenue of $8.42 billion during the quarter, compared to the consensus estimate of $8.21 billion. PayPal had a net margin of 14.96% and a return on equity of 25.64%. PayPal’s quarterly revenue was up 7.3% on a year-over-year basis. During the same quarter in the prior year, the firm earned $1.20 EPS. On average, equities analysts predict that PayPal will post 5.03 earnings per share for the current fiscal year.

Insider Activity at PayPal

In related news, EVP Aaron Webster sold 9,282 shares of the stock in a transaction dated Monday, November 10th. The stock was sold at an average price of $66.29, for a total transaction of $615,303.78. Following the transaction, the executive vice president owned 35,699 shares of the company’s stock, valued at approximately $2,366,486.71. This represents a 20.64% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Suzan Kereere sold 4,162 shares of the firm’s stock in a transaction dated Wednesday, November 19th. The shares were sold at an average price of $59.84, for a total value of $249,054.08. Following the transaction, the insider owned 30,983 shares of the company’s stock, valued at $1,854,022.72. This trade represents a 11.84% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 25,944 shares of company stock valued at $1,725,233 in the last quarter. 0.08% of the stock is owned by insiders.

Institutional Trading of PayPal

Several hedge funds have recently made changes to their positions in PYPL. Norges Bank purchased a new stake in PayPal during the 2nd quarter worth approximately $921,570,000. Dimensional Fund Advisors LP grew its stake in shares of PayPal by 35.9% in the third quarter. Dimensional Fund Advisors LP now owns 8,177,536 shares of the credit services provider’s stock worth $548,520,000 after acquiring an additional 2,160,227 shares in the last quarter. Lazard Asset Management LLC grew its stake in shares of PayPal by 1,066.0% in the second quarter. Lazard Asset Management LLC now owns 2,106,215 shares of the credit services provider’s stock worth $156,532,000 after acquiring an additional 1,925,583 shares in the last quarter. Two Sigma Investments LP purchased a new stake in shares of PayPal during the third quarter worth $97,794,000. Finally, Arrowstreet Capital Limited Partnership raised its stake in shares of PayPal by 45.0% in the second quarter. Arrowstreet Capital Limited Partnership now owns 3,569,023 shares of the credit services provider’s stock valued at $265,250,000 after acquiring an additional 1,107,202 shares in the last quarter. Institutional investors and hedge funds own 68.32% of the company’s stock.

PayPal News Roundup

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: Bull case: The Motley Fool argues a recent strategic partnership and product rollout could materially accelerate PayPal’s growth in 2026, a view that supports upside beyond current levels. Prediction: 2026 Will Be the Year of PayPal
• Positive Sentiment: Merchant adoption of crypto at checkout is rising per PayPal/NCA data — ~40% of U.S. merchants accept crypto and many expect it to become common, which reinforces PayPal’s payments/crypto strategy and longer‑term TAM. PayPal and NCA Survey Shows Rising Merchant Adoption of Cryptocurrency Payments
• Positive Sentiment: Q4 revenue setup: JPMorgan (via Benzinga preview) expects PayPal to likely beat revenue consensus and deliver in‑line EPS — a beat would be a short‑term positive catalyst. PayPal Q4 Preview: Analyst Expects Revenue Beat, In-Line Earnings
• Neutral Sentiment: Cantor Fitzgerald initiated coverage with a neutral/hold — adds institutional attention but not an endorsement that would move the stock materially by itself. Cantor Fitzgerald initiates coverage of PayPal
• Neutral Sentiment: HSBC trimmed its price target from $93 to $72 but maintained a buy rating — lowers upside math but keeps a constructive medium‑term view. HSBC Lowers PayPal (NASDAQ:PYPL) Price Target to $72.00
• Negative Sentiment: Sell-side pressure: Rothschild & Co Redburn downgraded PayPal to Sell (PT $50) and Truist cut its PT and assigned a Sell — these downgrades and warnings about tough volume comps ahead of Q4 are directly pressuring the stock. “Heads Up, Investors,” PayPal Stock (PYPL) Hit with Sell Rating and Price Target Cut ahead of Q4 Earnings
• Negative Sentiment: Near‑term selling: Multiple outlets report shares slipping after analyst downgrades and pre‑earnings caution, increasing short‑term volatility into the Feb 3 earnings release. PayPal (NASDAQ:PYPL) Shares Down 1.9% on Analyst Downgrade

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.