PayPal (NASDAQ:PYPL) Stock Price Up 1.3% – Still a Buy?

PayPal Holdings, Inc. (NASDAQ:PYPL)’s stock price was up 1.3% during trading on Tuesday . The stock traded as high as $41.60 and last traded at $40.81. Approximately 20,279,787 shares changed hands during mid-day trading, a decline of 17% from the average daily volume of 24,542,354 shares. The stock had previously closed at $40.29.

Key PayPal News

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: Analyst bullish case — a Seeking Alpha piece argues PayPal remains a “buy” at a reduced target, citing diversification across Venmo, PSP, Omni and BNPL, and very low valuation multiples (P/E ~7.5) that may offer downside protection and upside if execution stabilizes. PayPal: Despite Uncertainty, Stock Remains A Buy
• Neutral Sentiment: Partner integration news — OLB Group announced a global partner agreement to integrate PayPal checkout/wallet into its gateway; this expands distribution but is more meaningful for OLB than for PayPal’s core scale. OLB Group Stock Skyrockets On PayPal Partnership
• Neutral Sentiment: Mixed fundamentals read — Zacks highlights Q4 transaction revenue growth but a lower take rate and a flat 2026 total payment volume outlook, which clouds near?term growth expectations even as some margins/metrics remain attractive. PYPL’s Transaction Revenues: Will it Pave the Way or Hinder Growth?
• Neutral Sentiment: Comparative view — The Motley Fool piece frames PayPal as deep?value but higher risk versus faster?growth fintech peers; useful context for investors weighing valuation vs. execution risk. Better Fintech Stock: PayPal vs. SoFi
• Negative Sentiment: Multiple class?action and investigation notices — Several law firms (Levi & Korsinsky, Pomerantz, Robbins LLP, Howard G. Smith, RGRD Law and others) have filed or opened investigations and shareholder alerts alleging PayPal misled investors about revenue/growth projections for the Feb 25, 2025–Feb 2, 2026 class period; Levi & Korsinsky set an April 20, 2026 lead?plaintiff deadline. This litigation wave raises potential legal costs, distraction, and settlement risk that can pressure the stock. SHAREHOLDER ALERT-Levi-Korsinsky-LLP-Notifies-Investors-It-Has-Filed-a-Complaint… INVESTOR ALERT: PayPal Holdings, Inc. Investors with Substantial Losses Have Opportunity to Lead the PayPal Class Action Lawsuit – RGRD Law

Wall Street Analysts Forecast Growth

Several equities research analysts recently commented on the company. Stephens dropped their target price on PayPal from $65.00 to $45.00 and set an “equal weight” rating on the stock in a report on Wednesday, February 4th. HSBC downgraded shares of PayPal from a “buy” rating to a “hold” rating and set a $47.00 price objective for the company. in a research report on Wednesday, February 4th. Piper Sandler dropped their price objective on shares of PayPal from $76.00 to $74.00 and set a “neutral” rating on the stock in a research note on Wednesday, January 14th. Sanford C. Bernstein decreased their target price on shares of PayPal from $62.00 to $45.00 and set a “market perform” rating for the company in a research note on Monday, February 9th. Finally, William Blair reaffirmed a “market perform” rating on shares of PayPal in a report on Tuesday, February 3rd. Nine equities research analysts have rated the stock with a Buy rating, thirty have issued a Hold rating and five have assigned a Sell rating to the company. According to data from MarketBeat, the company currently has an average rating of “Hold” and an average price target of $61.03.

PayPal Trading Up 1.3%

The company has a market cap of $37.57 billion, a P/E ratio of 7.54, a P/E/G ratio of 1.04 and a beta of 1.43. The business has a fifty day simple moving average of $54.60 and a 200 day simple moving average of $62.85. 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 posted its quarterly 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). PayPal had a net margin of 15.77% and a return on equity of 25.42%. The firm had revenue of $8.68 billion for the quarter, compared to analyst estimates of $8.82 billion. During the same period in the prior year, the company posted $1.19 earnings per share. The business’s revenue was up 4.0% on a year-over-year basis. Analysts anticipate that PayPal Holdings, Inc. will post 5.03 earnings per share for the current fiscal year.

PayPal Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, March 25th. Stockholders of record on Wednesday, March 4th will be issued a $0.14 dividend. The ex-dividend date of this dividend is Wednesday, March 4th. This represents a $0.56 annualized dividend and a dividend yield of 1.4%. PayPal’s payout ratio is 10.35%.

Insider Transactions at PayPal

In related news, EVP Frank Keller sold 3,478 shares of the business’s stock in a transaction that occurred on Friday, February 6th. The stock was sold at an average price of $40.20, for a total transaction of $139,815.60. Following the completion of the transaction, the executive vice president owned 51,567 shares in the company, valued at $2,072,993.40. The trade was a 6.32% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Suzan Kereere sold 4,162 shares of the company’s stock in a transaction on Wednesday, November 19th. The stock was 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 approximately $1,854,022.72. The trade was a 11.84% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 0.08% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On PayPal

Several hedge funds and other institutional investors have recently modified their holdings of PYPL. Wedmont Private Capital lifted its position in PayPal by 1.6% in the 3rd quarter. Wedmont Private Capital now owns 9,157 shares of the credit services provider’s stock valued at $614,000 after purchasing an additional 142 shares during the last quarter. Dakota Community Bank & Trust NA raised its holdings in shares of PayPal by 8.7% during the second quarter. Dakota Community Bank & Trust NA now owns 1,840 shares of the credit services provider’s stock valued at $137,000 after buying an additional 147 shares during the last quarter. Maia Wealth LLC raised its holdings in shares of PayPal by 2.5% during the third quarter. Maia Wealth LLC now owns 6,404 shares of the credit services provider’s stock valued at $424,000 after buying an additional 155 shares during the last quarter. Transatlantique Private Wealth LLC boosted its position in shares of PayPal by 2.9% during the third quarter. Transatlantique Private Wealth LLC now owns 5,698 shares of the credit services provider’s stock worth $382,000 after buying an additional 159 shares during the period. Finally, WCG Wealth Advisors LLC increased its position in PayPal by 1.1% in the 2nd quarter. WCG Wealth Advisors LLC now owns 14,285 shares of the credit services provider’s stock valued at $1,062,000 after acquiring an additional 162 shares during the period. Institutional investors and hedge funds own 68.32% of the company’s stock.

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.