PayPal (NASDAQ:PYPL) Trading Up 1.6% – What’s Next?

PayPal Holdings, Inc. (NASDAQ:PYPL) shares shot up 1.6% during trading on Tuesday . The company traded as high as $46.98 and last traded at $46.13. 20,879,924 shares changed hands during trading, a decline of 16% from the average session volume of 24,986,244 shares. The stock had previously closed at $45.42.

PayPal News Roundup

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: PayPal expanded its PayPal USD (PYUSD) stablecoin to 70 markets, enabling faster settlement (reported 1-minute settlements in some coverage), lower cross-border costs and the ability for users to receive, hold and send PYUSD globally — a concrete product rollout that can drive payment volume and new fees. PAYPAL BRINGS PAYPAL USD TO USERS ACROSS 70 MARKETS
• Neutral Sentiment: Analysts and commentators note PYPL’s low valuation (single-digit P/E) and say the stock could rebound if execution improves; however, consensus is that the next earnings report (early May) will be the key catalyst to confirm any turnaround. Why PayPal’s Rally Faded—And What Could Restart It
• Negative Sentiment: Multiple securities class-action lawsuits have been filed and several law firms are soliciting lead plaintiffs (April 20 deadline), creating potential legal costs and management distraction that could pressure the stock. PayPal Holdings (PYPL) Faces Securities Class Action — Hagens Berman
• Negative Sentiment: Recent quarterly results missed estimates and management issued cautious guidance; the subsequent CEO exit has amplified uncertainty and was cited in coverage about the new lawsuits and market-cap decline. New Lawsuit Hits PayPal After CEO Exit

Analyst Upgrades and Downgrades

A number of equities analysts recently issued reports on PYPL shares. Piper Sandler decreased their target price on shares of PayPal from $76.00 to $74.00 and set a “neutral” rating for the company in a research report on Wednesday, January 14th. Cantor Fitzgerald decreased their price objective on shares of PayPal from $60.00 to $42.00 and set a “neutral” rating for the company in a report on Monday, February 9th. Monness Crespi & Hardt lowered shares of PayPal from a “buy” rating to a “neutral” rating in a research note on Monday, January 5th. JPMorgan Chase & Co. cut their target price on PayPal from $70.00 to $46.00 and set a “neutral” rating for the company in a research report on Wednesday, February 4th. Finally, Mizuho set a $60.00 price target on PayPal in a research note on Wednesday, February 4th. Eight investment analysts have rated the stock with a Buy rating, thirty-one have given a Hold rating and six have assigned a Sell rating to the company. Based on data from MarketBeat, the company presently has an average rating of “Hold” and a consensus target price of $59.03.

PayPal Stock Up 1.6%

The company has a debt-to-equity ratio of 0.49, a current ratio of 1.29 and a quick ratio of 1.29. The stock has a market capitalization of $42.47 billion, a P/E ratio of 8.53, a PEG ratio of 1.34 and a beta of 1.43. The stock’s fifty day moving average is $48.64 and its two-hundred day moving average is $59.50.

PayPal (NASDAQ:PYPL) last announced its quarterly earnings data on Tuesday, February 3rd. The credit services provider reported $1.23 EPS for the quarter, missing analysts’ consensus estimates of $1.29 by ($0.06). The company had revenue of $8.68 billion for the quarter, compared to analyst estimates of $8.82 billion. PayPal had a net margin of 15.77% and a return on equity of 25.42%. PayPal’s revenue was up 4.0% on a year-over-year basis. During the same quarter last year, the company posted $1.19 EPS. As a group, research analysts predict that PayPal Holdings, Inc. will post 5.03 earnings per share for the current fiscal year.

PayPal Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, March 25th. Investors of record on Wednesday, March 4th will be given a $0.14 dividend. The ex-dividend date is Wednesday, March 4th. This represents a $0.56 dividend on an annualized basis and a dividend yield of 1.2%. PayPal’s dividend payout ratio (DPR) is 10.35%.

Insider Buying and Selling

In other news, insider Suzan Kereere sold 37,613 shares of PayPal stock in a transaction that occurred on Wednesday, February 18th. The shares were sold at an average price of $41.49, for a total value of $1,560,563.37. Following the transaction, the insider directly owned 30,983 shares of the company’s stock, valued at $1,285,484.67. This trade represents a 54.83% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, CAO Chris Natali sold 2,208 shares of the company’s stock in a transaction that occurred on Tuesday, March 3rd. The shares were sold at an average price of $44.73, for a total transaction of $98,763.84. Following the completion of the sale, the chief accounting officer owned 1,140 shares of the company’s stock, valued at approximately $50,992.20. This trade represents a 65.95% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 87,608 shares of company stock valued at $3,831,535. 0.08% of the stock is owned by corporate insiders.

Institutional Trading of PayPal

Several large investors have recently added to or reduced their stakes in PYPL. Bard Associates Inc. acquired a new stake in shares of PayPal in the fourth quarter worth $25,000. Caitong International Asset Management Co. Ltd raised its position in PayPal by 15,233.3% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 460 shares of the credit services provider’s stock valued at $27,000 after buying an additional 457 shares during the period. Safe Harbor Fiduciary LLC purchased a new stake in PayPal in the 4th quarter worth about $28,000. Cloud Capital Management LLC acquired a new stake in PayPal during the 3rd quarter worth about $30,000. Finally, Kelleher Financial Advisors acquired a new stake in PayPal during the 3rd quarter worth about $30,000. 68.32% of the stock is owned by institutional investors and hedge funds.

About PayPal

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.