PayPal (NASDAQ:PYPL) Trading Down 1.3% – Should You Sell?

PayPal Holdings, Inc. (NASDAQ:PYPL) fell 1.3% during mid-day trading on Monday . The company traded as low as $44.64 and last traded at $45.63. 17,291,588 shares traded hands during trading, a decline of 37% from the average session volume of 27,314,887 shares. The stock had previously closed at $46.21.

PayPal News Roundup

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: Partnership to speed freight invoice settlements — PayPal’s collaboration with TCS Blockchain to enable digital-asset settlement for freight invoices promises faster, cheaper settlement for carriers, a tangible revenue/utility push into logistics payments. TCS Blockchain and PayPal Drive Financial Innovation
• Positive Sentiment: Expanded merchant integrations — CellPoint Digital integration broadens PayPal’s merchant reach in travel and retail, easing adoption friction and potentially boosting TPV and checkout share. CellPoint Digital and PayPal Partner
• Positive Sentiment: Contrarian bullish research — at least one sell-side/independent piece argues valuation and catalysts make PYPL attractive, offering a counter-narrative that can support upside interest from value/seeking investors. PayPal Is Attractive At $70
• Neutral Sentiment: Buyout/takeover speculation persists — market chatter about potential acquirers (e.g., Stripe interest) adds M&A optionality but is uncertain; such rumors can boost trading but bring little near-term clarity. PayPal Buyout Rumors
• Negative Sentiment: Wave of securities class-action filings — multiple law firms have filed or solicited lead plaintiffs alleging misleading guidance and projections tied to an FY/Q4 shortfall; legal risk increases headline volatility and potential costs. Levi & Korsinsky Announces Filing
• Negative Sentiment: Recent Q4 miss and share weakness — PayPal’s Q4 revenue and EPS missed estimates, sparking a 12?month low and fresh investor concern about growth trajectory and execution on branded checkout. PayPal Shares Plunge to 12-Month Low
• Negative Sentiment: Analyst caution — Bernstein and other boutiques are cautious/neutral (Bernstein reaffirmed Market Perform with a ~$45 target), citing deteriorating pricing power; downgrades or low price targets limit near-term upside. Bernstein Sees Limited Upside

Analyst Upgrades and Downgrades

A number of analysts have weighed in on PYPL shares. Daiwa Securities Group lowered their target price on PayPal from $61.00 to $42.00 and set a “neutral” rating for the company in a report on Tuesday, February 10th. BNP Paribas Exane dropped their price objective on PayPal from $71.00 to $69.00 and set a “neutral” rating on the stock in a research report on Tuesday, December 2nd. Canaccord Genuity Group reiterated a “hold” rating and issued a $42.00 target price (down from $100.00) on shares of PayPal in a research note on Wednesday, February 4th. Deutsche Bank Aktiengesellschaft decreased their price target on shares of PayPal from $75.00 to $65.00 and set a “hold” rating for the company in a research report on Friday, December 5th. Finally, TD Cowen reaffirmed a “hold” rating on shares of PayPal in a research report on Tuesday, February 3rd. Eight investment analysts have rated the stock with a Buy rating, thirty-one have issued a Hold rating and six have issued a Sell rating to the stock. According to MarketBeat.com, the company has a consensus rating of “Hold” and a consensus target price of $59.55.

PayPal Price Performance

The stock’s 50 day simple moving average is $51.03 and its 200-day simple moving average is $60.99. The firm has a market cap of $43.04 billion, a price-to-earnings ratio of 8.64, a price-to-earnings-growth ratio of 1.19 and a beta of 1.43. The company has a debt-to-equity ratio of 0.49, a quick ratio of 1.29 and a current ratio of 1.29.

PayPal (NASDAQ:PYPL) last released its earnings results on Tuesday, February 3rd. The credit services provider reported $1.23 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.29 by ($0.06). The firm had revenue of $8.68 billion during 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 period in the previous year, the company earned $1.19 earnings per share. Equities research analysts anticipate that PayPal Holdings, Inc. will post 5.03 EPS for the current fiscal year.

PayPal Dividend Announcement

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 dividend of $0.14 per share. This represents a $0.56 annualized dividend and a yield of 1.2%. The ex-dividend date is Wednesday, March 4th. PayPal’s dividend payout ratio (DPR) is currently 10.35%.

Insiders Place Their Bets

In other news, CAO Chris Natali sold 1,213 shares of the firm’s stock in a transaction that occurred on Tuesday, February 17th. The shares were sold at an average price of $40.49, for a total transaction of $49,114.37. Following the sale, the chief accounting officer owned 404 shares of the company’s stock, valued at $16,357.96. This trade represents a 75.02% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, insider Suzan Kereere sold 37,613 shares of the stock in a transaction on Wednesday, February 18th. The stock was sold at an average price of $41.49, for a total transaction of $1,560,563.37. Following the sale, the insider directly owned 30,983 shares in the company, valued at $1,285,484.67. This trade represents a 54.83% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 42,304 shares of company stock worth $1,749,493. Corporate insiders own 0.08% of the company’s stock.

Institutional Investors Weigh In On PayPal

Several institutional investors have recently bought and sold shares of the company. AG Campbell Advisory LLC acquired a new position in PayPal in the 4th quarter valued at $47,000. SHP Wealth Management purchased a new stake in PayPal during the 4th quarter valued at about $42,000. Caitong International Asset Management Co. Ltd grew its stake in PayPal by 15,233.3% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 460 shares of the credit services provider’s stock valued at $27,000 after acquiring an additional 457 shares in the last quarter. Reflection Asset Management acquired a new stake in PayPal in the 4th quarter valued at about $74,000. Finally, Sankala Group LLC purchased a new position in PayPal in the 4th quarter worth approximately $132,000. 68.32% of the stock is currently owned by institutional investors and hedge funds.

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.