PayPal (NASDAQ:PYPL) Shares Up 2.5% – Should You Buy?

PayPal Holdings, Inc. (NASDAQ:PYPL)’s stock price shot up 2.5% during trading on Monday . The company traded as high as $45.02 and last traded at $44.67. 15,893,141 shares were traded during mid-day trading, a decline of 34% from the average session volume of 24,236,242 shares. The stock had previously closed at $43.59.

Key Headlines Impacting PayPal

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: Venmo expansion and monetization upside — Venmo’s user base surpassing 100M, rising TPV and PayPal’s push to turn Venmo into a global commerce engine (launch into ~90 markets) could lift revenue growth and improve monetization over time. This is the primary near-term upside narrative for PYPL. PayPal Expands Venmo
• Neutral Sentiment: Increased investor attention — Zacks notes heightened searches and interest in PYPL, which can amplify volatility but does not by itself change fundamentals. Monitor flows and news volume. PayPal Attracting Investor Attention
• Neutral Sentiment: Competitive landscape — coverage on BNPL rival Affirm and other fintechs highlights competitive risks to PayPal’s consumer-finance products; this is a watch item for margins and market share but not an immediate company-specific shock. Affirm: A Solid Footing or More Volatility Ahead?
• Negative Sentiment: Multiple securities class-action notices — several law firms (Schall, Portnoy, DJS, Rosen, Faruqi & Faruqi) have filed or solicited lead-plaintiff roles alleging securities-law violations for purchases between Feb 25, 2025 and Feb 2, 2026. This increases legal and settlement risk and can pressure sentiment and valuation. Schall Law Firm Notice
• Negative Sentiment: FTC warning over account moderation and “debanking” — the FTC has flagged PayPal’s moderation/policy practices and warned of potential enforcement, adding regulatory risk around core customer access rules. This could prompt policy changes, fines, or operational constraints. FTC Warning Puts PayPal Policies
• Negative Sentiment: Congressional probe into SEC crypto enforcement pullbacks — Senator Blumenthal is seeking SEC records after enforcement changes and the abrupt resignation of the SEC enforcement chief; shifting crypto enforcement dynamics could affect PayPal’s growing crypto/stablecoin initiatives and add regulatory uncertainty. Senator Blumenthal Probes SEC Crypto Case Pullback

Analysts Set New Price Targets

Several research firms have issued reports on PYPL. Zacks Research cut PayPal from a “hold” rating to a “strong sell” rating in a research report on Wednesday, February 11th. BNP Paribas Exane reduced their price target on PayPal from $71.00 to $69.00 and set a “neutral” rating for the company in a report on Tuesday, December 2nd. Susquehanna decreased their price target on PayPal from $90.00 to $63.00 and set a “positive” rating on the stock in a research note on Wednesday, February 4th. UBS Group reiterated a “neutral” rating and issued a $44.00 price objective on shares of PayPal in a research report on Wednesday, February 4th. Finally, Rothschild & Co Redburn reduced their target price on PayPal from $50.00 to $32.00 and set a “sell” rating for the company in a report on Wednesday, February 11th. Eight research analysts have rated the stock with a Buy rating, thirty have given a Hold rating and six have issued a Sell rating to the company’s stock. Based on data from MarketBeat, the company has an average rating of “Hold” and a consensus price target of $58.43.

PayPal Price Performance

The firm has a market cap of $41.13 billion, a PE ratio of 8.26, a price-to-earnings-growth ratio of 1.30 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 company has a 50 day moving average price of $46.29 and a 200 day moving average price of $57.99.

PayPal (NASDAQ:PYPL) last released 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 analysts’ expectations of $8.82 billion. PayPal had a net margin of 15.77% and a return on equity of 25.42%. The business’s revenue for the quarter was up 4.0% on a year-over-year basis. During the same period in the previous year, the business earned $1.19 earnings per share. On average, sell-side analysts expect that PayPal Holdings, Inc. will post 5.03 EPS for the current year.

PayPal Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, March 25th. Stockholders of record on Wednesday, March 4th were paid a dividend of $0.14 per share. This represents a $0.56 annualized dividend and a dividend yield of 1.3%. The ex-dividend date of this dividend was Wednesday, March 4th. PayPal’s payout ratio is 10.35%.

Insider Buying and Selling

In related news, EVP Frank Keller sold 29,581 shares of the business’s stock in a transaction dated Tuesday, March 3rd. The shares were sold at an average price of $46.02, for a total value of $1,361,317.62. Following the sale, the executive vice president directly owned 51,567 shares in the company, valued at $2,373,113.34. The trade was a 36.45% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Suzan Kereere sold 13,515 shares of the stock in a transaction dated Tuesday, March 3rd. The shares were sold at an average price of $46.02, for a total transaction of $621,960.30. Following the completion of the sale, the insider directly owned 30,983 shares in the company, valued at approximately $1,425,837.66. The trade was a 30.37% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 87,608 shares of company stock worth $3,831,535 in the last three months. Corporate insiders own 0.08% of the company’s stock.

Institutional Investors Weigh In On PayPal

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Brighton Jones LLC raised its holdings in shares of PayPal by 15.2% in the fourth quarter. Brighton Jones LLC now owns 6,989 shares of the credit services provider’s stock worth $596,000 after acquiring an additional 924 shares during the last quarter. Revolve Wealth Partners LLC acquired a new stake in shares of PayPal during the fourth quarter valued at $248,000. Sivia Capital Partners LLC increased its position in PayPal by 41.5% during the 2nd quarter. Sivia Capital Partners LLC now owns 4,470 shares of the credit services provider’s stock worth $332,000 after purchasing an additional 1,310 shares in the last quarter. United Bank raised its stake in PayPal by 40.1% in the 2nd quarter. United Bank now owns 17,388 shares of the credit services provider’s stock valued at $1,292,000 after purchasing an additional 4,974 shares during the last quarter. Finally, Boston Partners acquired a new position in PayPal in the 2nd quarter valued at about $939,000. Hedge funds and other institutional investors own 68.32% of the company’s stock.

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.