PayPal (NASDAQ:PYPL) Trading Down 1.2% on Insider Selling

Shares of PayPal Holdings, Inc. (NASDAQ:PYPL) fell 1.2% during mid-day trading on Thursday following insider selling activity. The company traded as low as $56.66 and last traded at $57.65. Approximately 11,674,640 shares were traded during mid-day trading, a decline of 41% from the average session volume of 19,626,641 shares. The stock had previously closed at $58.35.

Specifically, insider Frank Keller sold 732 shares of the company’s stock in a transaction 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 sale, the insider directly owned 41,567 shares of the company’s stock, valued at approximately $2,415,042.70. This represents a 1.73% decrease in their position. The transaction 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, CAO Chris Natali sold 1,337 shares of the stock in a transaction on Wednesday, July 29th. The stock was sold at an average price of $58.10, for a total transaction of $77,679.70. Following the sale, the chief accounting officer owned 2,216 shares of the company’s stock, valued at approximately $128,749.60. This trade represents a 37.63% 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.

Wall Street Analysts Forecast Growth

Several research firms recently issued reports on PYPL. BMO Capital Markets assumed coverage on shares of PayPal in a report on Tuesday, April 21st. They issued a “market perform” rating and a $52.00 target price on the stock. Wells Fargo & Company increased their price target on PayPal from $48.00 to $56.00 and gave the stock an “equal weight” rating in a report on Wednesday. UBS Group set a $45.00 price objective on PayPal in a research report on Wednesday. Needham & Company LLC reissued a “hold” rating on shares of PayPal in a research note on Tuesday, May 5th. Finally, Canaccord Genuity Group restated a “hold” rating and set a $55.00 target price on shares of PayPal in a research report on Wednesday. Nine analysts have rated the stock with a Buy rating, thirty-four have issued a Hold rating and four have given a Sell rating to the company’s stock. According to MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus target price of $55.50.

Key PayPal News

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: PayPal’s second-quarter results exceeded expectations, with adjusted earnings per share of $1.38 versus the $1.28 consensus and revenue of $8.68 billion versus $8.47 billion expected. Management also raised its full-year outlook, citing improving branded checkout, Venmo expansion and cost savings. PayPal Shares Pause as Raised Guidance Validates Turnaround Narrative
• Positive Sentiment: Several analysts raised their price targets following the earnings report, including JPMorgan, TD Cowen, Citigroup and Keefe, Bruyette & Woods. The targets—ranging from the mid-$50s to $70—suggest some analysts see additional upside if PayPal sustains its operational improvements. JPMorgan Analyst Says PayPal Stock Could Rise
• Positive Sentiment: Value-focused commentary highlights PYPL’s relatively low earnings multiple, arguing that the valuation could provide support if the company converts its stronger guidance into consistent growth. PayPal: A Steal At Less Than 10x Earnings
• Neutral Sentiment: Analyst opinion remains mixed. Canaccord Genuity maintained a hold rating, while Wells Fargo increased its target to $56 but kept an equal-weight rating. The broader brokerage consensus remains “hold,” reflecting improved results but limited confidence in PayPal’s longer-term growth trajectory. Canaccord Gives PayPal a Hold Rating
• Neutral Sentiment: Speculation about takeover interest, including a reported bid involving Stripe and Advent International, could support valuation, but no transaction is confirmed and investors remain focused on PayPal’s standalone turnaround. Is Takeout Target PayPal a Buy?
• Negative Sentiment: Bearish analysis says PayPal’s substantial share-repurchase program has not translated into sustained stock-price gains, underscoring skepticism about capital allocation and the company’s growth prospects. PayPal’s $17 Billion Bet Against Wall Street
• Negative Sentiment: Investors continue to monitor margin pressure, branded-checkout execution and PayPal’s slower growth relative to major payments peers. Two insiders also sold shares under pre-arranged Rule 10b5-1 plans; the sales are relatively small but may add modest near-term caution. PayPal Insider Selling

PayPal Price Performance

The company has a debt-to-equity ratio of 0.55, a current ratio of 1.29 and a quick ratio of 1.26. The firm has a market capitalization of $48.94 billion, a price-to-earnings ratio of 10.81, a PEG ratio of 1.43 and a beta of 1.33. The business’s fifty day simple moving average is $47.03 and its 200 day simple moving average is $47.09.

PayPal (NASDAQ:PYPL) last announced its quarterly earnings data on Tuesday, July 28th. The credit services provider reported $1.38 earnings per share 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 net margin of 14.36% and a return on equity of 24.39%. The business’s quarterly revenue was up 4.8% compared to the same quarter last year. During the same quarter in the prior year, the business earned $1.40 earnings per share. On average, research analysts forecast that PayPal Holdings, Inc. will post 5.35 EPS for the current year.

PayPal Dividend Announcement

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

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Vanguard Group Inc. lifted its holdings in shares of PayPal by 6.5% in the 4th quarter. Vanguard Group Inc. now owns 90,376,927 shares of the credit services provider’s stock worth $5,276,205,000 after purchasing an additional 5,534,462 shares in the last quarter. Bank of America Corp DE raised its holdings in PayPal by 67.9% during the first quarter. Bank of America Corp DE now owns 25,614,720 shares of the credit services provider’s stock worth $1,158,554,000 after buying an additional 10,356,256 shares during the last quarter. Norges Bank bought a new position in shares of PayPal in the fourth quarter valued at $949,758,000. Amundi increased its position in shares of PayPal by 227.6% during the first quarter. Amundi now owns 13,804,208 shares of the credit services provider’s stock worth $624,364,000 after acquiring an additional 9,590,488 shares in the last quarter. Finally, Invesco Ltd. increased its position in shares of PayPal by 9.7% during the fourth quarter. Invesco Ltd. now owns 12,215,792 shares of the credit services provider’s stock worth $713,158,000 after acquiring an additional 1,083,843 shares in the last quarter. Institutional investors own 68.32% of the company’s stock.

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.