PayPal (NASDAQ:PYPL) Stock Price Expected to Rise, Keefe, Bruyette & Woods Analyst Says

PayPal (NASDAQ:PYPL) had its target price hoisted by analysts at Keefe, Bruyette & Woods from $55.00 to $70.00 in a report issued on Wednesday,Benzinga reports. The brokerage presently has an “outperform” rating on the credit services provider’s stock. Keefe, Bruyette & Woods’ price objective suggests a potential upside of 20.03% from the stock’s previous close.

A number of other research analysts also recently issued reports on the stock. BTIG Research reiterated a “neutral” rating on shares of PayPal in a research report on Wednesday, July 15th. Citigroup upgraded shares of PayPal from a “neutral” rating to a “hold” rating in a report on Monday. Needham & Company LLC restated a “hold” rating on shares of PayPal in a research note on Tuesday, May 5th. Weiss Ratings reaffirmed a “hold (c-)” rating on shares of PayPal in a research note on Friday, May 8th. Finally, William Blair reiterated a “market perform” rating on shares of PayPal in a report on Wednesday, July 15th. Ten analysts have rated the stock with a Buy rating, thirty-three have assigned a Hold rating and four have given a Sell rating to the company. According to MarketBeat.com, the company has an average rating of “Hold” and a consensus price target of $54.96.

PayPal Trading Up 4.0%

NASDAQ PYPL opened at $58.32 on Wednesday. The stock has a market capitalization of $51.44 billion, a P/E ratio of 10.94, a P/E/G ratio of 1.40 and a beta of 1.33. The business has a 50 day simple moving average of $46.22 and a 200 day simple moving average of $47.02. The company has a debt-to-equity ratio of 0.47, a current ratio of 1.26 and a quick ratio of 1.26. PayPal has a one year low of $38.46 and a one year high of $79.21.

PayPal (NASDAQ:PYPL) last issued its quarterly earnings results 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 analyst estimates of $8.47 billion. PayPal had a return on equity of 25.02% and a net margin of 15.00%.The company’s revenue was up 4.8% compared to the same quarter last year. During the same period in the previous year, the firm earned $1.40 earnings per share. Research analysts expect that PayPal will post 5.32 earnings per share for the current year.

Insider Transactions at PayPal

In related news, insider Suzan Kereere sold 3,379 shares of the firm’s stock in a transaction dated Wednesday, June 3rd. The shares were sold at an average price of $42.79, for a total value of $144,587.41. Following the transaction, the insider owned 30,983 shares of the company’s stock, valued at approximately $1,325,762.57. This trade represents a 9.83% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Frank Keller sold 4,612 shares of PayPal stock in a transaction dated Wednesday, June 3rd. The shares were sold at an average price of $42.54, for a total value of $196,194.48. Following the transaction, the insider owned 41,567 shares of the company’s stock, valued at $1,768,260.18. This trade represents a 9.99% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 8,543 shares of company stock worth $364,325 in the last 90 days. 0.63% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On PayPal

Several institutional investors have recently bought and sold shares of the stock. Cary Street Partners Financial LLC lifted its stake in PayPal by 20.1% during the 2nd quarter. Cary Street Partners Financial LLC now owns 4,809 shares of the credit services provider’s stock valued at $208,000 after acquiring an additional 805 shares in the last quarter. Hickory Point Bank & Trust lifted its position in shares of PayPal by 137.9% during the second quarter. Hickory Point Bank & Trust now owns 690 shares of the credit services provider’s stock valued at $30,000 after purchasing an additional 400 shares in the last quarter. Formidable Asset Management LLC lifted its position in shares of PayPal by 17.3% during the second quarter. Formidable Asset Management LLC now owns 30,436 shares of the credit services provider’s stock valued at $1,377,000 after purchasing an additional 4,499 shares in the last quarter. Ballentine Partners LLC boosted its holdings in PayPal by 9.5% during the second quarter. Ballentine Partners LLC now owns 8,686 shares of the credit services provider’s stock worth $375,000 after purchasing an additional 753 shares during the last quarter. Finally, Camelot Portfolios LLC grew its position in PayPal by 14.6% in the 2nd quarter. Camelot Portfolios LLC now owns 24,120 shares of the credit services provider’s stock worth $1,042,000 after purchasing an additional 3,080 shares in the last quarter. Institutional investors own 68.32% of the company’s stock.

PayPal News Summary

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: Q2 earnings beat expectations: PayPal reported adjusted EPS of $1.38 versus the $1.28 consensus and revenue of $8.68 billion versus estimates of $8.47 billion. Revenue rose 4.8% year over year, supported by growth at Venmo and Braintree. PayPal’s Q2 Earnings Beat Estimates on TPV & Revenue Growth
• Positive Sentiment: Improved outlook and operating momentum: Management raised its 2026 adjusted EPS forecast to $5.38 and increased transaction-margin guidance. Total payment volume climbed 10% to $486.4 billion, transactions rose 8%, and PayPal generated $1.8 billion in free cash flow while repurchasing approximately $1.5 billion of stock. PayPal presses on with turnaround as sale questions linger
• Positive Sentiment: Takeover premium remains in focus: Stripe and Advent International reportedly offered $60.50 per share, valuing PayPal at roughly $53 billion. The board reportedly viewed the offer as too low, while CEO Enrique Lores left the door open to a higher bid. This supports investor hopes for either a sweetened offer or a stronger standalone recovery. Once high-flying PayPal becomes a takeover target
• Neutral Sentiment: Turnaround execution is still being tested: PayPal is investing in checkout modernization, artificial-intelligence tools, digital identity and stablecoins. Management says the strategic reorganization is progressing, but investors are waiting for stronger branded-checkout growth and evidence that cost savings can improve profitability.
• Negative Sentiment: Margin and near-term growth concerns remain: Higher investment spending pressured margins, GAAP profit declined year over year, and some reports characterized third-quarter guidance as soft. Analysts have largely retained Hold ratings because competitive pressure and limited branded-checkout momentum could restrain the recovery. X’s new Visa-supported X Money service also adds another competitive threat in digital payments. PayPal delivers Q2 earnings beat with soft Q3 guidance

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.