PayPal Holdings, Inc. (NASDAQ:PYPL) Receives $56.28 Average Price Target from Brokerages

PayPal Holdings, Inc. (NASDAQ:PYPL) has been given a consensus recommendation of “Hold” by the forty-seven brokerages that are presently covering the stock, MarketBeat Ratings reports. Four analysts have rated the stock with a sell rating, thirty-four have assigned a hold rating and nine have given a buy rating to the company. The average 1 year price target among analysts that have issued ratings on the stock in the last year is $56.1389.

A number of brokerages have issued reports on PYPL. Daiwa Securities Group upgraded shares of PayPal from a “hold” rating to an “outperform” rating in a research note on Wednesday, May 6th. Cantor Fitzgerald lifted their price objective on shares of PayPal from $54.00 to $60.00 and gave the stock a “neutral” rating in a research note on Monday, August 3rd. Clear Str raised shares of PayPal to a “hold” rating in a report on Thursday, July 16th. TD Cowen upped their target price on PayPal from $48.00 to $59.00 and gave the company a “hold” rating in a research report on Wednesday, July 29th. Finally, Susquehanna raised their target price on PayPal from $63.00 to $67.00 and gave the stock a “positive” rating in a research note on Wednesday, July 29th.

PayPal Price Performance

Shares of NASDAQ PYPL opened at $53.66 on Monday. The company has a debt-to-equity ratio of 0.55, a quick ratio of 1.29 and a current ratio of 1.29. The company has a market cap of $45.90 billion, a PE ratio of 10.14, a P/E/G ratio of 1.50 and a beta of 1.30. The business has a 50-day simple moving average of $53.88 and a two-hundred day simple moving average of $48.11. PayPal has a fifty-two week low of $38.46 and a fifty-two week high of $79.21.

PayPal (NASDAQ:PYPL) last posted its quarterly earnings data on Tuesday, July 28th. The credit services provider reported $1.38 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.28 by $0.10. The firm had revenue of $8.68 billion for the quarter, compared to the consensus estimate of $8.47 billion. PayPal had a net margin of 14.36% and a return on equity of 24.39%. The company’s revenue for the quarter was up 4.8% compared to the same quarter last year. During the same quarter in the prior year, the company posted $1.40 earnings per share. As a group, equities analysts expect that PayPal will post 5.38 EPS for the current fiscal year.

PayPal Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, September 25th. Stockholders of record on Friday, September 4th will be issued a $0.14 dividend. The ex-dividend date of this dividend is Friday, September 4th. This represents a $0.56 dividend on an annualized basis and a dividend yield of 1.0%. PayPal’s dividend payout ratio is currently 10.59%.

Insider Transactions at PayPal

In other news, insider Frank Keller sold 4,612 shares of the firm’s stock in a transaction dated Wednesday, June 3rd. The stock was sold at an average price of $42.54, for a total value of $196,194.48. Following the completion of the transaction, the insider directly owned 41,567 shares in the company, valued at $1,768,260.18. This trade represents a 9.99% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Suzan Kereere sold 4,162 shares of the company’s stock in a transaction that occurred on Tuesday, August 18th. The shares were sold at an average price of $60.96, for a total value of $253,715.52. Following the completion of the sale, the insider owned 30,983 shares in the company, valued at approximately $1,888,723.68. This represents a 11.84% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 14,774 shares of company stock worth $738,249 over the last three months. 0.63% of the stock is currently owned by insiders.

Institutional Trading of PayPal

Several large investors have recently made changes to their positions in PYPL. Bard Associates Inc. acquired a new position in PayPal during the fourth quarter valued at $25,000. Allied Private Wealth LLC acquired a new stake in PayPal during the 2nd quarter worth about $25,000. Robinswood Financial LLC acquired a new stake in PayPal during the 1st quarter worth about $26,000. Caitong International Asset Management Co. Ltd raised its stake in shares of PayPal by 15,233.3% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 460 shares of the credit services provider’s stock valued at $27,000 after buying an additional 457 shares during the last quarter. Finally, Mowery & Schoenfeld Wealth Management LLC purchased a new position in shares of PayPal during the 2nd quarter valued at about $27,000. 68.32% of the stock is owned by hedge funds and other institutional investors.

Key Stories Impacting PayPal

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: Some market observers argue that PayPal’s board protected potentially greater long-term shareholder value by rejecting the reported $60.50-per-share offer, which valued the company at approximately $53 billion. Options pricing also continues to indicate a bullish bias among some traders. PayPal Drops 12% Overnight on Dead Stripe Deal
• Positive Sentiment: PayPal remains an independent turnaround story, with recent initiatives expanding PayPal and Venmo tuition-payment integrations through campus platforms. Investors will now focus more closely on whether management can improve growth and execution without takeover support. PayPal Tuition Payment Push
• Neutral Sentiment: The failed transaction removes a major change-of-control catalyst and returns attention to PayPal’s standalone fundamentals. The company recently exceeded quarterly earnings and revenue expectations, but revenue growth remained modest and earnings per share declined year over year, leaving execution of its turnaround as the key valuation driver.
• Negative Sentiment: The reported withdrawal eliminates the takeover premium that had supported PYPL during weeks of deal speculation. Reports cited valuation concerns, regulatory hurdles and a breakdown in negotiations; the abrupt reversal has therefore prompted investors to reassess PayPal at its lower standalone valuation. PayPal Shares Fall After Consortium Abandons Takeover Pursuit
• Negative Sentiment: Analysts, including Mizuho, are highlighting risks facing PayPal after the deal collapsed. The heavy trading volume and test of the 50-day moving average indicate heightened uncertainty as investors await evidence that the company can generate sufficient growth independently. Why PayPal Stock Is Down and What Mizuho Thinks Comes Next

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.