PayPal (NASDAQ:PYPL) Stock Price Target Lowered at Citigroup

PayPal (NASDAQ:PYPL) had its target price cut by research analysts at Citigroup from $61.00 to $58.00 in a research report issued to clients and investors on Wednesday, Benzinga reports. The brokerage presently has a “neutral” rating on the credit services provider’s stock. Citigroup‘s price target indicates a potential upside of 2.53% from the company’s previous close.

Several other equities analysts have also weighed in on the company. Keefe, Bruyette & Woods lifted their price target on PayPal from $55.00 to $70.00 and gave the company an “outperform” rating in a research note on Wednesday, July 29th. The Goldman Sachs Group set a $50.00 price objective on PayPal in a report on Tuesday, July 28th. JPMorgan Chase & Co. boosted their price objective on PayPal from $46.00 to $65.00 and gave the company a “neutral” rating in a research report on Wednesday, July 29th. William Blair reaffirmed a “market perform” rating on shares of PayPal in a research note on Wednesday, July 15th. Finally, Barclays decreased their target price on PayPal from $57.00 to $56.00 and set an “equal weight” rating on the stock in a research report on Friday, October 9th. Nine investment analysts have rated the stock with a Buy rating, thirty-two have given a Hold rating and five have assigned a Sell rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Hold” and a consensus price target of $57.17.

PayPal Stock Performance

PYPL stock traded up $0.48 during midday trading on Wednesday, hitting $56.57. 7,208,241 shares of the stock traded hands, compared to its average volume of 17,195,203. PayPal has a 1-year low of $38.46 and a 1-year high of $72.73. The company has a debt-to-equity ratio of 0.55, a current ratio of 1.29 and a quick ratio of 1.29. The stock’s fifty day simple moving average is $55.63 and its 200-day simple moving average is $50.05. The firm has a market cap of $48.39 billion, a P/E ratio of 10.69, a PEG ratio of 1.27 and a beta of 1.27.

PayPal (NASDAQ:PYPL) last issued its quarterly earnings data on Tuesday, October 27th. The credit services provider reported $1.45 earnings per share for the quarter, topping analysts’ consensus estimates of $1.31 by $0.14. PayPal had a net margin of 14.36% and a return on equity of 24.39%. The business had revenue of $8.58 billion during the quarter, compared to the consensus estimate of $8.71 billion. During the same quarter in the prior year, the firm posted $1.34 earnings per share. The company’s revenue was up 2.0% compared to the same quarter last year. On average, analysts expect that PayPal will post 5.39 earnings per share for the current year.

Insiders Place Their Bets

In other news, insider Frank Keller sold 4,612 shares of PayPal stock in a transaction that occurred on Thursday, September 3rd. The stock was sold at an average price of $55.43, for a total value of $255,643.16. Following the sale, the insider directly owned 41,567 shares of the company’s stock, valued at $2,304,058.81. The trade was a 9.99% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Chris Natali sold 552 shares of the business’s stock in a transaction that occurred on Thursday, September 3rd. The stock was sold at an average price of $54.80, for a total value of $30,249.60. Following the sale, the chief accounting officer owned 2,400 shares of the company’s stock, valued at $131,520. The trade was a 18.70% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 12,705 shares of company stock worth $727,886. Corporate insiders own 0.63% of the company’s stock.

Institutional Investors Weigh In On PayPal

Large investors have recently modified their holdings of the business. Parcion Private Wealth LLC lifted its stake in shares of PayPal by 11.5% in the third quarter. Parcion Private Wealth LLC now owns 11,967 shares of the credit services provider’s stock worth $629,000 after buying an additional 1,233 shares in the last quarter. Partners Wealth Management LLC purchased a new stake in PayPal during the 3rd quarter valued at about $312,000. Soltis Investment Advisors LLC purchased a new stake in PayPal during the 3rd quarter valued at about $276,000. United Asset Strategies Inc. raised its holdings in PayPal by 2.1% in the 3rd quarter. United Asset Strategies Inc. now owns 33,185 shares of the credit services provider’s stock valued at $1,743,000 after acquiring an additional 670 shares during the last quarter. Finally, Choreo LLC raised its holdings in PayPal by 11.6% in the 3rd quarter. Choreo LLC now owns 18,843 shares of the credit services provider’s stock valued at $990,000 after acquiring an additional 1,962 shares during the last quarter. Hedge funds and other institutional investors own 68.32% of the company’s stock.

Key Headlines Impacting PayPal

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: PayPal reported third-quarter adjusted EPS of $1.45, above the $1.31 analyst consensus. Total payment volume increased 6% year over year to approximately $487.1 billion, while transaction revenue rose 3%. PayPal’s Q3 Earnings Beat, Transaction Revenues & TPV Rises Y/Y
• Positive Sentiment: Management raised its 2026 adjusted earnings outlook and transaction-margin-dollar guidance to $15.7 billion. Venmo, financial services, cost reductions and expanding operating margins are supporting the turnaround, with the company targeting roughly $700 million in cost savings by year-end. PayPal raises 2026 profit forecast as turnaround gains traction
• Positive Sentiment: PayPal returned about $1.5 billion to shareholders through repurchases and announced a quarterly dividend of $0.14 per share, equivalent to a $0.56 annualized payout and an approximately 1% yield. PayPal Holdings stock rises on strong payment growth, buybacks and dividend news
• Neutral Sentiment: Analyst reaction was mixed: some firms raised targets on expense control and improving execution, while others maintained “Hold” ratings or trimmed targets because structural growth concerns remain.
• Negative Sentiment: Third-quarter revenue of $8.58 billion rose only 2% year over year and missed the $8.71 billion consensus. Value-added-services revenue was weak, and branded checkout continues to face competitive and execution headwinds. PayPal raises profit forecast but revenue growth remains a concern
• Negative Sentiment: PayPal is expected to remain in an investment phase during fiscal 2027, with larger planned investments potentially limiting near-term margins and earnings leverage. Analysts generally view the turnaround as progressing, but believe meaningful operating leverage may not arrive until 2028.

About PayPal

PayPal Holdings, Inc operates a global digital payments platform that enables consumers and businesses to send, receive, and manage money online and through mobile devices. Its services support online checkout, peer-to-peer payments, money transfers, payment processing, invoicing, and other commerce-related transactions.

The company’s portfolio includes the PayPal and Venmo brands, Braintree’s payment processing technology, and Xoom’s international money transfer service. PayPal also offers merchant tools, digital wallets, payment solutions, and consumer financing products through its platform and related services.

PayPal traces its origins to 1998 and became an independent publicly traded company after separating from eBay in 2015.