PayPal (NASDAQ:PYPL) Trading Up 3.9% Following Better-Than-Expected Earnings

PayPal Holdings, Inc. (NASDAQ:PYPL)’s share price was up 3.9% during trading on Tuesday after the company announced better than expected quarterly earnings. The company traded as high as $79.21 and last traded at $73.02. Approximately 83,056,755 shares were traded during trading, an increase of 597% from the average daily volume of 11,912,404 shares. The stock had previously closed at $70.25.

The credit services provider reported $1.34 EPS for the quarter, topping the consensus estimate of $1.20 by $0.14. The company had revenue of $8.42 billion for the quarter, compared to analyst estimates of $8.21 billion. PayPal had a return on equity of 25.35% and a net margin of 14.49%.The firm’s revenue was up 7.3% compared to the same quarter last year. During the same quarter in the previous year, the company posted $1.20 earnings per share. PayPal has set its Q4 2025 guidance at 1.270-1.310 EPS. FY 2025 guidance at 5.350-5.390 EPS.

Wall Street Analyst Weigh In

Several research analysts have commented on PYPL shares. JMP Securities cut their price target on PayPal from $110.00 to $100.00 and set a “market outperform” rating on the stock in a research report on Wednesday, July 30th. KeyCorp reiterated a “hold” rating on shares of PayPal in a research note on Wednesday, October 22nd. Wall Street Zen downgraded PayPal from a “buy” rating to a “hold” rating in a research note on Saturday, October 4th. Wells Fargo & Company upgraded PayPal to a “hold” rating in a research note on Wednesday, October 22nd. Finally, Piper Sandler set a $74.00 target price on PayPal in a research note on Tuesday, July 29th. Fifteen research analysts have rated the stock with a Buy rating, fourteen have given a Hold rating and three have assigned a Sell rating to the stock. According to data from MarketBeat, PayPal currently has a consensus rating of “Hold” and an average price target of $82.57.

Insider Activity at PayPal

In related news, CAO Chris Natali sold 7,102 shares of PayPal stock in a transaction that occurred on Thursday, July 31st. The stock was sold at an average price of $69.35, for a total value of $492,523.70. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, insider Suzan Kereere sold 4,162 shares of PayPal stock in a transaction that occurred on Tuesday, August 19th. The shares were sold at an average price of $69.39, for a total value of $288,801.18. Following the completion of the sale, the insider owned 48,483 shares in the company, valued at approximately $3,364,235.37. This trade represents a 7.91% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 15,102 shares of company stock worth $1,046,607 over the last three months. 0.08% of the stock is currently owned by corporate insiders.

Institutional Trading of PayPal

Institutional investors have recently modified their holdings of the business. AQR Capital Management LLC boosted its stake in shares of PayPal by 15.8% in the first quarter. AQR Capital Management LLC now owns 3,501,936 shares of the credit services provider’s stock valued at $224,001,000 after buying an additional 476,763 shares in the last quarter. Thompson Investment Management Inc. boosted its position in PayPal by 2.8% during the second quarter. Thompson Investment Management Inc. now owns 154,991 shares of the credit services provider’s stock worth $11,519,000 after purchasing an additional 4,165 shares in the last quarter. Kathmere Capital Management LLC purchased a new stake in PayPal during the second quarter worth $325,000. Allianz SE boosted its position in PayPal by 281.8% during the first quarter. Allianz SE now owns 30,338 shares of the credit services provider’s stock worth $1,980,000 after purchasing an additional 22,392 shares in the last quarter. Finally, Nuveen LLC purchased a new stake in PayPal during the first quarter worth $529,264,000. 68.32% of the stock is currently owned by hedge funds and other institutional investors.

PayPal Stock Performance

The stock has a 50-day simple moving average of $69.03 and a 200 day simple moving average of $70.01. The company has a debt-to-equity ratio of 0.56, a current ratio of 1.33 and a quick ratio of 1.33. The company has a market capitalization of $69.76 billion, a PE ratio of 15.60, a P/E/G ratio of 1.09 and a beta of 1.44.

About PayPal

PayPal Holdings, Inc operates a technology platform that enables digital payments on behalf of merchants and consumers worldwide. It operates a two-sided network at scale that connects merchants and consumers that enables its customers to connect, transact, and send and receive payments through online and in person, as well as transfer and withdraw funds using various funding sources, such as bank accounts, PayPal or Venmo account balance, PayPal and Venmo branded credit products comprising its installment products, credit and debit cards, and cryptocurrencies, as well as other stored value products, including gift cards and eligible rewards.