PayPal (NASDAQ:PYPL) Stock Price Up 1.8% – Time to Buy?

PayPal Holdings, Inc. (NASDAQ:PYPL)’s stock price traded up 1.8% on Friday . The stock traded as high as $62.31 and last traded at $61.66. 15,452,050 shares changed hands during trading, a decline of 18% from the average daily volume of 18,888,129 shares. The stock had previously closed at $60.59.

Key Stories Impacting PayPal

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: Renewed takeover discussions provided the main catalyst. PayPal is reportedly in early negotiations to sell itself to a group involving Stripe and private-equity firm Advent International. The parties are said to be considering a higher valuation than an earlier offer, although discussions remain preliminary and no deal is assured. PayPal Stock Rises on Report of Stripe, Advent Buyout Talks
• Positive Sentiment: A $1.5 billion cost-savings plan could support earnings. PayPal intends to use artificial intelligence, operational changes and a simpler organizational structure to reduce expenses, potentially improving profitability while freeing resources for future growth. PayPal Cost Savings: Will $1.5B Plan Reshape Profitability?
• Positive Sentiment: Venmo remains a potential growth and monetization engine. Venmo is generating mid-teens total payment volume growth, but the investment case increasingly depends on PayPal converting expanding user activity and product adoption into revenue. PayPal’s Venmo: Can Monetization Sustain Its Mid-Teens Growth?
• Neutral Sentiment: Recent profit improvement may already be reflected in company disclosures. Commentary highlighted a shift toward businesses that are supporting PayPal’s recovery, but suggested the underlying drivers were previously identified in management reports rather than representing a wholly new development. PayPal Stock Surged On a Profit Shift Management Had Already Spelled Out
• Negative Sentiment: Longer-term investor concerns remain. Despite recurring payment-volume growth, PayPal’s shares remain far below their record level, reflecting doubts about revenue conversion, competitive pressure and the company’s ability to sustain growth. PayPal Grows Its Volume Every Year. Here’s Why the Stock Doesn’t Always Follow

Wall Street Analyst Weigh In

PYPL has been the topic of a number of research analyst reports. Citigroup upped their price target on shares of PayPal from $48.00 to $61.00 and gave the stock a “neutral” rating in a report on Wednesday, July 29th. Mizuho lifted their price objective on shares of PayPal from $50.00 to $60.00 and gave the company a “neutral” rating in a report on Wednesday, July 29th. Deutsche Bank Aktiengesellschaft reissued a “hold” rating and issued a $45.00 price objective on shares of PayPal in a research report on Wednesday, July 29th. Needham & Company LLC restated a “hold” rating on shares of PayPal in a research note on Tuesday, May 5th. Finally, Susquehanna raised their target price on shares of PayPal from $63.00 to $67.00 and gave the stock a “positive” rating in a research report on Wednesday, July 29th. Nine analysts have rated the stock with a Buy rating, thirty-four have issued a Hold rating and four have assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average price target of $55.72.

PayPal Stock Performance

The company has a quick ratio of 1.29, a current ratio of 1.29 and a debt-to-equity ratio of 0.55. The firm has a 50 day moving average price of $50.13 and a 200 day moving average price of $47.28. The stock has a market cap of $52.76 billion, a PE ratio of 11.66, a price-to-earnings-growth ratio of 1.51 and a beta of 1.30.

PayPal (NASDAQ:PYPL) last released its quarterly earnings data on Tuesday, July 28th. The credit services provider reported $1.38 earnings per share for the quarter, topping analysts’ consensus estimates of $1.28 by $0.10. PayPal had a net margin of 14.36% and a return on equity of 24.39%. The company had revenue of $8.68 billion during the quarter, compared to analyst estimates of $8.47 billion. During the same period in the prior year, the firm earned $1.40 earnings per share. The firm’s revenue for the quarter was up 4.8% compared to the same quarter last year. As a group, research analysts forecast that PayPal Holdings, Inc. will post 5.37 earnings per share for the current year.

PayPal Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, September 25th. Stockholders of record on Friday, September 4th will be given a $0.14 dividend. This represents a $0.56 annualized dividend and a dividend yield of 0.9%. The ex-dividend date of this dividend is Friday, September 4th. PayPal’s dividend payout ratio is presently 10.59%.

Insider Transactions at PayPal

In related news, insider Frank Keller sold 732 shares of the business’s stock in a transaction that occurred on Wednesday, July 29th. The shares were sold at an average price of $58.10, for a total value of $42,529.20. Following the completion of the transaction, the insider owned 41,567 shares of the company’s stock, valued at $2,415,042.70. The trade was a 1.73% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Suzan Kereere sold 3,379 shares of the business’s stock in a transaction that occurred on Wednesday, June 3rd. The stock was sold at an average price of $42.79, for a total transaction of $144,587.41. Following the completion of the transaction, the insider directly owned 30,983 shares of the company’s stock, valued at $1,325,762.57. This trade represents a 9.83% 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. In the last quarter, insiders sold 10,612 shares of company stock valued at $484,534. Company insiders own 0.63% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in PYPL. Bard Associates Inc. purchased a new stake in shares of PayPal during the 4th quarter worth $25,000. Allied Private Wealth LLC purchased a new position in PayPal in the second quarter valued at about $25,000. Robinswood Financial LLC purchased a new position in PayPal in the first quarter valued at about $26,000. Caitong International Asset Management Co. Ltd raised 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 purchasing an additional 457 shares in the last quarter. Finally, Mowery & Schoenfeld Wealth Management LLC bought a new position in PayPal in the second quarter worth about $27,000. 68.32% of the stock is currently owned by hedge funds and other institutional investors.

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.