PayPal (NASDAQ:PYPL – Get Free Report) had its target price decreased by equities research analysts at Bank of America from $55.00 to $53.00 in a note issued to investors on Wednesday,MarketScreener reports. The firm currently has a “neutral” rating on the credit services provider’s stock. Bank of America‘s target price would indicate a potential upside of 13.27% from the company’s current price.
PYPL has been the subject of several other reports. Wells Fargo & Company decreased their price target on shares of PayPal from $67.00 to $48.00 and set an “equal weight” rating for the company in a report on Wednesday, February 4th. Weiss Ratings reiterated a “hold (c)” rating on shares of PayPal in a research note on Thursday, January 22nd. William Blair restated a “market perform” rating on shares of PayPal in a research note on Tuesday, February 3rd. BMO Capital Markets initiated coverage on PayPal in a research note on Tuesday, April 21st. They issued a “market perform” rating and a $52.00 target price for the company. Finally, Daiwa Securities Group upgraded PayPal from a “hold” rating to an “outperform” rating in a research report on Wednesday. Eight research analysts have rated the stock with a Buy rating, thirty-two have issued a Hold rating and five have given a Sell rating to the company. According to MarketBeat, the stock has an average rating of “Hold” and an average price target of $56.42.
Read Our Latest Analysis on PYPL
PayPal Stock Performance
PayPal (NASDAQ:PYPL – Get Free Report) last released its quarterly earnings data on Tuesday, May 5th. The credit services provider reported $1.34 EPS for the quarter, topping analysts’ consensus estimates of $1.27 by $0.07. The firm had revenue of $8.35 billion during the quarter, compared to the consensus estimate of $8.05 billion. PayPal had a net margin of 15.00% and a return on equity of 25.02%. The firm’s revenue was up 7.2% on a year-over-year basis. During the same quarter in the previous year, the company posted $1.33 earnings per share. On average, equities research analysts predict that PayPal will post 5.31 earnings per share for the current fiscal year.
Insiders Place Their Bets
In other PayPal news, insider Suzan Kereere sold 37,613 shares of the firm’s stock in a transaction that occurred on Wednesday, February 18th. The shares were sold at an average price of $41.49, for a total value of $1,560,563.37. Following the sale, the insider owned 30,983 shares in the company, valued at approximately $1,285,484.67. This trade represents a 54.83% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP Frank Keller sold 29,581 shares of PayPal stock in a transaction that occurred on 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 approximately $2,373,113.34. This trade represents a 36.45% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders sold 99,677 shares of company stock worth $4,433,834. Insiders own 0.63% of the company’s stock.
Institutional Inflows and Outflows
Institutional investors and hedge funds have recently modified their holdings of the business. Vanguard Group Inc. boosted its position in shares of PayPal by 6.5% in the fourth quarter. Vanguard Group Inc. now owns 90,376,927 shares of the credit services provider’s stock valued at $5,276,205,000 after acquiring an additional 5,534,462 shares during the period. National Pension Service boosted its holdings in PayPal by 1.8% in the 3rd quarter. National Pension Service now owns 2,855,897 shares of the credit services provider’s stock valued at $191,516,000 after purchasing an additional 51,268 shares during the period. Nordea Investment Management AB grew its position in PayPal by 7.9% in the 3rd quarter. Nordea Investment Management AB now owns 4,292,583 shares of the credit services provider’s stock worth $291,338,000 after purchasing an additional 313,180 shares during the last quarter. Rakuten Investment Management Inc. bought a new position in shares of PayPal during the 3rd quarter worth about $13,210,000. Finally, NEOS Investment Management LLC raised its position in shares of PayPal by 47.8% during the third quarter. NEOS Investment Management LLC now owns 411,262 shares of the credit services provider’s stock valued at $27,579,000 after buying an additional 132,942 shares during the last quarter. Institutional investors own 68.32% of the company’s stock.
Key PayPal News
Here are the key news stories impacting PayPal this week:
- Positive Sentiment: Q1 beats on top and bottom line — PayPal reported $1.34 EPS (vs. $1.27 expected) and revenue strength with TPV growth, evidence the core payments business still has momentum. A Look At PayPal Holdings (PYPL) Valuation As Earnings Beat But Guidance Resets Expectations
- Positive Sentiment: Bullish analyst actions — Royal Bank of Canada reaffirmed an Outperform with a $59 target and Daiwa upgraded PYPL to Outperform, signaling some analysts see meaningful upside from current levels. PayPal (NASDAQ:PYPL) Given Outperform Rating at Royal Bank Of Canada
- Neutral Sentiment: AI and reorganization could matter long term — Management is reorganizing into three business units, pushing AI initiatives (PayPal Ads ID, Store Sync integrations) and positioning the company as more tech?centric; benefits will take time to materialize. Can PayPal’s AI Reset And Reorganization Revive Long Term Growth Potential
- Neutral Sentiment: Dividend maintained — PayPal declared a quarterly dividend (small yield ~1.2%), which supports income?oriented holders but is not a major growth catalyst. (Company release)
- Negative Sentiment: Soft guidance and profit reset drove the selloff — Despite the beat, management guided to weaker near?term profitability (management flagged ~9% decline in adjusted EPS) and warned margins/earnings will be pressured, which is the primary reason shares fell. PayPal shares fall as it signals profit decline ahead
- Negative Sentiment: Large cost cuts and layoffs increase near?term uncertainty — Management announced a workforce reduction of roughly 20% and a $1.5B cost?savings program; this reduces expense run?rate but raises execution and transition risk. PayPal layoffs: New CEO cuts 20% of workforce in Q1 2026
- Negative Sentiment: UK competition probe — The UK Financial Conduct Authority opened an investigation into PayPal and card networks over PayPal wallet funding/competition concerns, adding regulatory risk and potential future remediation costs. UK FCA opens competition investigation into PayPal, Visa and Mastercard
- Negative Sentiment: Some sell?side downgrades and lower targets — Goldman Sachs lowered its price target to $40, reflecting increased skepticism about the near?term outlook and reinforcing downward pressure from cautious analysts. PayPal (NASDAQ:PYPL) Price Target Lowered to $40.00 at The Goldman Sachs Group
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.
Further Reading
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