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

Shares of PayPal Holdings, Inc. (NASDAQ:PYPL) were up 1.6% on Wednesday . The company traded as high as $41.76 and last traded at $41.45. Approximately 17,897,811 shares were traded during mid-day trading, a decline of 26% from the average daily volume of 24,335,680 shares. The stock had previously closed at $40.81.

Trending Headlines about PayPal

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: Bullish valuation thesis argues PYPL is materially undervalued after the recent sell?off; Seeking Alpha highlights durable businesses (Venmo, PSP, BNPL) and a $70 target despite short?term uncertainty. Read More.
• Positive Sentiment: PayPal announced a global partner agreement with OLB Group to integrate PayPal checkout/wallet into OLB’s gateway — incremental distribution that could modestly boost acceptance and volumes over time (more beneficial to OLB in the near term). Read More.
• Neutral Sentiment: Coverage piece on PayPal’s role in online casino payments — illustrates ongoing demand for digital payments but unlikely to move PYPL stock meaningfully on its own. Read More.
• Negative Sentiment: Numerous law firms have filed shareholder class actions or launched investigations alleging PayPal misstatements for the Feb 25, 2025–Feb 2, 2026 class period; multiple notices/lead?plaintiff deadlines are being publicized — a legal overhang that can pressure the stock and increase potential litigation costs. Read More.
• Negative Sentiment: PayPal’s CEO exit coincided with disappointing quarterly results and guidance, prompting investor concern over timing and succession; activist/investor investigations and a leadership transition raise near?term execution risk. Read More.
• Negative Sentiment: Truist cut estimates and slashed its PYPL price target to $39 (from $58), citing slower volume and take?rate compression — a clear analyst downgrade that reinforces downward pressure on investor sentiment. Read More.
• Negative Sentiment: Institutional selling: Gator Capital disclosed selling PYPL in Q4 2025 — another sign some funds are reducing exposure amid prolonged weakness. Read More.
• Negative Sentiment: Company fundamentals: Analysts note Q4 transaction revenue growth but a lower take?rate and flat TM$ outlook for 2026, clouding growth prospects and validating earnings/multiple compression concerns. Read More.

Analyst Ratings Changes

Several equities research analysts recently commented on PYPL shares. Daiwa Securities Group decreased their price objective on shares of PayPal from $61.00 to $42.00 and set a “neutral” rating on the stock in a research report on Tuesday, February 10th. Argus reduced their price target on shares of PayPal from $87.00 to $65.00 and set a “buy” rating on the stock in a report on Friday, February 6th. BNP Paribas Exane lowered their price target on shares of PayPal from $71.00 to $69.00 and set a “neutral” rating on the stock in a research report on Tuesday, December 2nd. KGI Securities cut their price objective on PayPal from $85.00 to $80.00 in a research report on Monday, November 10th. Finally, Bank of America reaffirmed a “neutral” rating and issued a $68.00 target price (down previously from $93.00) on shares of PayPal in a research note on Thursday, December 11th. Nine investment analysts have rated the stock with a Buy rating, thirty have assigned a Hold rating and five have given a Sell rating to the company’s stock. According to MarketBeat.com, the stock has an average rating of “Hold” and a consensus price target of $61.03.

PayPal Price Performance

The company’s 50 day simple moving average is $54.20 and its 200 day simple moving average is $62.67. The company has a current ratio of 1.29, a quick ratio of 1.29 and a debt-to-equity ratio of 0.49. The stock has a market capitalization of $38.16 billion, a PE ratio of 7.66, a PEG ratio of 1.04 and a beta of 1.43.

PayPal (NASDAQ:PYPL) last posted its quarterly earnings data 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 business had revenue of $8.68 billion for the quarter, compared to analyst estimates of $8.82 billion. PayPal had a return on equity of 25.42% and a net margin of 15.77%.PayPal’s revenue for the quarter was up 4.0% compared to the same quarter last year. During the same quarter last year, the business earned $1.19 EPS. On average, equities analysts anticipate that PayPal Holdings, Inc. will post 5.03 earnings per share for the current year.

PayPal Dividend Announcement

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

Insider Activity at PayPal

In other news, EVP Frank Keller sold 3,478 shares of the stock in a transaction dated Friday, February 6th. The shares were sold at an average price of $40.20, for a total transaction of $139,815.60. Following the transaction, the executive vice president directly owned 51,567 shares in the company, valued at $2,072,993.40. This represents a 6.32% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. 0.08% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On PayPal

A number of institutional investors have recently bought and sold shares of PYPL. Vanguard Group Inc. boosted its holdings in shares of PayPal by 6.5% in the 4th quarter. Vanguard Group Inc. now owns 90,376,927 shares of the credit services provider’s stock valued at $5,276,205,000 after purchasing an additional 5,534,462 shares during the last quarter. Capital Research Global Investors increased its holdings in shares of PayPal by 2.3% during the 3rd quarter. Capital Research Global Investors now owns 27,953,803 shares of the credit services provider’s stock worth $1,874,637,000 after buying an additional 636,441 shares during the last quarter. Norges Bank purchased a new position in shares of PayPal in the 4th quarter worth $949,758,000. Artisan Partners Limited Partnership boosted its holdings in PayPal by 1.6% in the second quarter. Artisan Partners Limited Partnership now owns 11,992,031 shares of the credit services provider’s stock valued at $891,248,000 after acquiring an additional 184,014 shares during the last quarter. Finally, Invesco Ltd. grew its position in PayPal by 10.9% during the third quarter. Invesco Ltd. now owns 11,131,949 shares of the credit services provider’s stock valued at $746,508,000 after acquiring an additional 1,093,365 shares during the period. 68.32% of the stock is currently owned by hedge funds and other institutional investors.

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.