Royal Bank Of Canada Cuts PayPal (NASDAQ:PYPL) Price Target to $59.00

PayPal (NASDAQ:PYPL) had its price objective reduced by Royal Bank Of Canada from $91.00 to $59.00 in a research note issued to investors on Wednesday morning, Marketbeat.com reports. They currently have an outperform rating on the credit services provider’s stock.

A number of other equities research analysts have also recently commented on the stock. Bank of America reaffirmed a “neutral” rating and issued a $68.00 target price (down from $93.00) on shares of PayPal in a report on Thursday, December 11th. Monness Crespi & Hardt downgraded PayPal from a “buy” rating to a “neutral” rating in a research note on Monday, January 5th. Robert W. Baird set a $52.00 target price on PayPal in a research note on Wednesday. Susquehanna cut their price target on PayPal from $94.00 to $90.00 and set a “positive” rating for the company in a research note on Thursday, January 8th. Finally, Raymond James Financial set a $48.00 price target on PayPal in a report on Tuesday. Ten research analysts have rated the stock with a Buy rating, thirty have assigned a Hold rating and four have issued a Sell rating to the company. Based on data from MarketBeat, PayPal presently has an average rating of “Hold” and a consensus target price of $64.28.

PayPal Stock Up 1.3%

Shares of NASDAQ PYPL opened at $40.42 on Wednesday. The business has a 50-day moving average price of $57.18 and a 200 day moving average price of $64.44. The stock has a market cap of $37.21 billion, a PE ratio of 7.47, a price-to-earnings-growth ratio of 0.77 and a beta of 1.43. The company has a quick ratio of 1.34, a current ratio of 1.29 and a debt-to-equity ratio of 0.49. PayPal has a 52-week low of $38.88 and a 52-week high of $79.50.

PayPal (NASDAQ:PYPL) last posted its quarterly earnings data on Tuesday, February 3rd. The credit services provider reported $1.23 earnings per share 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% compared to the same quarter last year. During the same period in the previous year, the company posted $1.19 earnings per share. Equities research analysts forecast that PayPal will post 5.03 earnings per share for the current year.

PayPal Dividend Announcement

The company 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. The ex-dividend date is Wednesday, March 4th. This represents a $0.56 annualized dividend and a dividend yield of 1.4%. PayPal’s payout ratio is currently 10.35%.

Insiders Place Their Bets

In related news, EVP Aaron Webster sold 9,282 shares of the business’s stock in a transaction dated Monday, November 10th. The shares were sold at an average price of $66.29, for a total transaction of $615,303.78. Following the sale, the executive vice president owned 35,699 shares of the company’s stock, valued at $2,366,486.71. The trade was a 20.64% 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, insider Suzan Kereere sold 4,162 shares of the firm’s stock in a transaction that occurred on Wednesday, November 19th. The shares were sold at an average price of $59.84, for a total transaction of $249,054.08. Following the transaction, the insider directly owned 30,983 shares of the company’s stock, valued at $1,854,022.72. This represents a 11.84% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 0.08% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On PayPal

Several hedge funds have recently added to or reduced their stakes in the stock. Norges Bank bought a new stake in PayPal during the 2nd quarter valued at about $921,570,000. Vanguard Group Inc. increased its position in shares of PayPal by 6.5% during the fourth quarter. Vanguard Group Inc. now owns 90,376,927 shares of the credit services provider’s stock valued at $5,276,205,000 after acquiring an additional 5,534,462 shares in the last quarter. Dimensional Fund Advisors LP lifted its position in PayPal by 35.9% in the 3rd quarter. Dimensional Fund Advisors LP now owns 8,177,536 shares of the credit services provider’s stock valued at $548,520,000 after acquiring an additional 2,160,227 shares in the last quarter. Lazard Asset Management LLC boosted its stake in PayPal by 1,066.0% during the 2nd quarter. Lazard Asset Management LLC now owns 2,106,215 shares of the credit services provider’s stock valued at $156,532,000 after purchasing an additional 1,925,583 shares during the last quarter. Finally, Two Sigma Investments LP bought a new stake in shares of PayPal in the 3rd quarter worth $97,794,000. 68.32% of the stock is owned by institutional investors.

More PayPal News

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: Deep-value case and buyback/dividend plan underpin a near-term bargain narrative; bulls point to low forward P/E, strong free cash flow and discretionary buybacks/new dividend as a potential floor. Read More.
• Positive Sentiment: Some investors view a new CEO as a catalyst — profiles of Enrique Lores suggest his turnaround/operational experience could help execution if appointed. Read More.
• Positive Sentiment: Several bullish commentaries argue long-term investors can be rewarded if PayPal stabilizes its product growth and execution — fueling bargain-hunting bounces. Read More.
• Neutral Sentiment: Compass Point moved to Neutral, reflecting that some uncertainty (CEO transition, guidance) is now priced in — not a clear buy/sell signal. Read More.
• Neutral Sentiment: Analysts are split: many cut targets and some keep “buy”/“outperform” calls, leaving consensus views mixed and volatility likely as estimates are re-worked. Read More.
• Negative Sentiment: Q4 results disappointed — EPS and revenue missed expectations and management issued lower 2026 guidance, which triggered the initial selloff and higher volatility. Read More.
• Negative Sentiment: CEO Alex Chriss was fired amid the branded-checkout slowdown and guidance cut; leadership turnover increases execution risk during a sensitive transition. Read More.
• Negative Sentiment: Regulatory/litigation risk surfaced: a securities investigation was announced into the gap between prior outlook and reported results, adding legal and disclosure uncertainty. Read More.
• Negative Sentiment: Heavy analyst price-target cuts, downgrades and visible insider selling amplified the selloff and investor caution this week. Read More.

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.