PayPal (NASDAQ:PYPL) Stock Price Down 3.8% – Should You Sell?

PayPal Holdings, Inc. (NASDAQ:PYPL) fell 3.8% during trading on Thursday . The company traded as low as $44.50 and last traded at $45.53. 47,705,962 shares changed hands during mid-day trading, an increase of 73% from the average session volume of 27,632,223 shares. The stock had previously closed at $47.32.

PayPal News Summary

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: Early takeover interest from Stripe briefly re-rated PayPal — the February report triggered a trading halt and a multi-percent rally as markets priced in a potential strategic bid that could unlock large upside. Stripe Report (TechCrunch)
• Positive Sentiment: Options and heavy call-buying show traders are still positioned for upside or event-driven volatility (consistent with takeover/arbitrage speculation), supporting intraday bids when news is constructive. MarketBeat: Halt & Options Flow
• Neutral Sentiment: Leadership transition (new CEO starts March 1) keeps strategic direction uncertain — this can either deter bidders or prompt near-term board action; investors are watching for how the new CEO addresses value/defensive positioning. MarketBeat: Leadership Context
• Negative Sentiment: Multiple reports over the last day say Stripe is not in takeover talks and PayPal confirmed it isn’t engaged in acquisition discussions — that pulled back the takeover premium and pressured the stock. Blockonomi: No Acquisition Talks
• Negative Sentiment: Several law firms and investor-rights groups have filed or announced class actions and investigations related to disclosures, prompting litigation risk and potential settlement exposure; multiple deadlines for lead-plaintiff motions are driving headlines. Pomerantz Class Action Alert
• Negative Sentiment: Analyst skepticism and recent fundamentals: a prior Q4 EPS/revenue miss and caution on 2026 guidance weigh on sentiment; Morgan Stanley’s maintained bearish view and other sell-side skepticism add pressure. Zacks: Guidance & Sentiment
• Negative Sentiment: Rising short interest and heightened volume amplify downside risk when positive headlines fade — short positions and fast news-flow can accelerate declines on negative follow-ups. MarketBeat: Short Interest & Volume

Analyst Upgrades and Downgrades

Several research firms recently commented on PYPL. Zacks Research cut PayPal from a “hold” rating to a “strong sell” rating in a research note on Wednesday, February 11th. Rothschild & Co Redburn lowered their target price on shares of PayPal from $50.00 to $32.00 and set a “sell” rating on the stock in a report on Wednesday, February 11th. William Blair reissued a “market perform” rating on shares of PayPal in a research report on Tuesday, February 3rd. KGI Securities dropped their target price on shares of PayPal from $85.00 to $80.00 in a research report on Monday, November 10th. Finally, Wall Street Zen cut PayPal from a “buy” rating to a “hold” rating in a research note on Sunday, January 18th. Nine investment analysts have rated the stock with a Buy rating, thirty have assigned a Hold rating and six have issued a Sell rating to the stock. According to data from MarketBeat, the stock presently has an average rating of “Hold” and an average price target of $61.03.

PayPal Trading Down 3.8%

The stock has a market cap of $41.92 billion, a PE ratio of 8.42, a PEG ratio of 1.22 and a beta of 1.43. 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 firm has a fifty day simple moving average of $52.13 and a two-hundred day simple moving average of $61.68.

PayPal (NASDAQ:PYPL) last released its quarterly earnings results 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). PayPal had a return on equity of 25.42% and a net margin of 15.77%.The company had revenue of $8.68 billion during the quarter, compared to analysts’ expectations of $8.82 billion. During the same period in the prior year, the firm earned $1.19 EPS. PayPal’s quarterly revenue was up 4.0% on a year-over-year basis. As a group, equities analysts expect that PayPal Holdings, Inc. will post 5.03 earnings per share for the current fiscal year.

PayPal Announces Dividend

The company also recently announced 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. The ex-dividend date of this dividend is Wednesday, March 4th. This represents a $0.56 annualized dividend and a yield of 1.2%. PayPal’s dividend payout ratio is currently 10.35%.

Insider Activity at PayPal

In related news, EVP Frank Keller sold 3,478 shares of the stock in a transaction on 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 owned 51,567 shares of the company’s stock, valued at approximately $2,072,993.40. This trade represents a 6.32% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, insider Suzan Kereere sold 37,613 shares of PayPal stock in a transaction dated Wednesday, February 18th. The stock was sold at an average price of $41.49, for a total value of $1,560,563.37. Following the completion of the transaction, the insider owned 30,983 shares in the company, valued at approximately $1,285,484.67. This represents a 54.83% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 42,304 shares of company stock valued at $1,749,493. Insiders own 0.08% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of PYPL. Bard Associates Inc. bought a new position in PayPal in the 4th quarter worth $25,000. Caitong International Asset Management Co. Ltd boosted its holdings in PayPal by 15,233.3% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 460 shares of the credit services provider’s stock worth $27,000 after acquiring an additional 457 shares in the last quarter. Safe Harbor Fiduciary LLC purchased a new stake in PayPal during the 4th quarter valued at about $28,000. MUFG Securities EMEA plc increased its position in shares of PayPal by 100.4% during the second quarter. MUFG Securities EMEA plc now owns 385 shares of the credit services provider’s stock valued at $29,000 after acquiring an additional 87,524 shares in the last quarter. Finally, Cloud Capital Management LLC purchased a new position in shares of PayPal in the third quarter worth $30,000. Institutional investors 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.