PayPal (NASDAQ:PYPL) Lowered to Sell Rating by Rothschild & Co Redburn

Rothschild & Co Redburn cut shares of PayPal (NASDAQ:PYPL) from a neutral rating to a sell rating in a research report sent to investors on Wednesday, MarketBeat.com reports. Rothschild & Co Redburn currently has $50.00 price target on the credit services provider’s stock.

Several other brokerages have also recently weighed in on PYPL. BNP Paribas Exane dropped their price target on shares of PayPal from $71.00 to $69.00 and set a “neutral” rating on the stock in a research report on Tuesday, December 2nd. Weiss Ratings reissued a “hold (c)” rating on shares of PayPal in a research note on Thursday, January 22nd. Morgan Stanley reaffirmed an “underweight” rating and set a $50.00 target price on shares of PayPal in a research report on Wednesday. Deutsche Bank Aktiengesellschaft decreased their price target on PayPal from $75.00 to $65.00 and set a “hold” rating for the company in a report on Friday, December 5th. Finally, Mizuho cut their price objective on shares of PayPal from $84.00 to $75.00 and set an “outperform” rating on the stock in a report on Monday, December 22nd. Twelve investment analysts have rated the stock with a Buy rating, twenty-four have issued a Hold rating and five have assigned a Sell rating to the stock. Based on data from MarketBeat.com, PayPal presently has an average rating of “Hold” and an average price target of $73.10.

PayPal Stock Performance

Shares of PYPL stock opened at $54.08 on Wednesday. The company has a current ratio of 1.34, a quick ratio of 1.34 and a debt-to-equity ratio of 0.56. The firm has a fifty day simple moving average of $59.29 and a two-hundred day simple moving average of $65.74. PayPal has a 12 month low of $53.65 and a 12 month high of $90.93. The firm has a market capitalization of $50.60 billion, a PE ratio of 10.84, a price-to-earnings-growth ratio of 0.69 and a beta of 1.42.

PayPal (NASDAQ:PYPL) last released its quarterly earnings data on Tuesday, October 28th. The credit services provider reported $1.34 earnings per share for the quarter, beating analysts’ consensus estimates of $1.20 by $0.14. The firm had revenue of $8.42 billion for the quarter, compared to analyst estimates of $8.21 billion. PayPal had a net margin of 14.96% and a return on equity of 25.64%. The business’s quarterly revenue was up 7.3% compared to the same quarter last year. During the same period last year, the firm earned $1.20 earnings per share. Analysts forecast that PayPal will post 5.03 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, insider Suzan Kereere sold 12,500 shares of the stock in a transaction dated Monday, November 3rd. The shares were sold at an average price of $68.87, for a total transaction of $860,875.00. Following the completion of the transaction, the insider owned 30,983 shares in the company, valued at approximately $2,133,799.21. This represents a 28.75% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP Aaron Webster sold 9,282 shares of the firm’s stock in a transaction dated Monday, November 10th. The stock was sold at an average price of $66.29, for a total transaction of $615,303.78. Following the sale, the executive vice president owned 35,699 shares of the company’s stock, valued at $2,366,486.71. This trade represents a 20.64% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 25,944 shares of company stock valued at $1,725,233 in the last 90 days. Corporate insiders own 0.08% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the stock. Wedmont Private Capital raised its holdings in shares of PayPal by 1.6% in the 3rd quarter. Wedmont Private Capital now owns 9,157 shares of the credit services provider’s stock worth $614,000 after purchasing an additional 142 shares during the period. Dakota Community Bank & Trust NA increased its position in PayPal by 8.7% in the second quarter. Dakota Community Bank & Trust NA now owns 1,840 shares of the credit services provider’s stock worth $137,000 after buying an additional 147 shares during the last quarter. Maia Wealth LLC raised its stake in shares of PayPal by 2.5% in the third quarter. Maia Wealth LLC now owns 6,404 shares of the credit services provider’s stock valued at $424,000 after buying an additional 155 shares during the period. Transatlantique Private Wealth LLC raised its stake in shares of PayPal by 2.9% in the third quarter. Transatlantique Private Wealth LLC now owns 5,698 shares of the credit services provider’s stock valued at $382,000 after buying an additional 159 shares during the period. Finally, WCG Wealth Advisors LLC grew its stake in shares of PayPal by 1.1% during the 2nd quarter. WCG Wealth Advisors LLC now owns 14,285 shares of the credit services provider’s stock worth $1,062,000 after acquiring an additional 162 shares during the period. 68.32% of the stock is owned by institutional investors.

PayPal News Summary

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: PayPal reported survey results showing rising merchant adoption of crypto payments (nearly 40% of U.S. merchants accept crypto), supporting PayPal’s payments/crypto strategy and potential revenue growth from new payment flows. Article Title
• Positive Sentiment: PayPal agreed to acquire e-commerce platform Cymbio to expand its agentic commerce push — an M&A move that could help broaden merchant services and drive long‑term GMV and revenue. Article Title
• Positive Sentiment: Coverage pieces note product expansion (gift cards, integrated tax filing) that could diversify revenue and increase engagement if executed well. Investors see this as incremental upside to payments and consumer services. Article Title
• Neutral Sentiment: Analysts expect Q4 results (reporting Feb 3). JPMorgan expects a revenue beat with in‑line earnings, so upcoming guidance and Q4 details will be closely watched. Article Title
• Neutral Sentiment: HSBC cut its price target from $93 to $72 but kept a Buy rating — a downgrade to the target that tempers upside expectations while still signaling conviction in the long term. Article Title
• Neutral Sentiment: Cantor Fitzgerald initiated coverage with a Neutral/Hold — another sign that some sell‑side desks view valuation and near‑term execution as balanced rather than a clear buy. Article Title
• Negative Sentiment: Rothschild & Co Redburn downgraded PayPal to Sell and cut the price target to $50, signaling near‑term downside risk (≈7–8% from current levels) and putting pressure on the stock ahead of earnings. Article Title
• Negative Sentiment: Critical analyst commentary and deep-dive pieces highlight a brutal competitive landscape and execution risks, which amplify investor concerns about growth sustainability and margin pressure. Article Title

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.