PayPal (NASDAQ:PYPL) Reaches New 1-Year Low on Analyst Downgrade

PayPal Holdings, Inc. (NASDAQ:PYPL) reached a new 52-week low during trading on Wednesday after Rothschild & Co Redburn downgraded the stock from a neutral rating to a sell rating. Rothschild & Co Redburn now has a $50.00 price target on the stock. PayPal traded as low as $54.61 and last traded at $54.4470, with a volume of 5975675 shares traded. The stock had previously closed at $55.51.

A number of other research analysts have also issued reports on PYPL. Citigroup cut their price target on shares of PayPal from $78.00 to $60.00 and set a “neutral” rating on the stock in a research note on Monday, January 5th. Canaccord Genuity Group upped their target price on PayPal from $96.00 to $100.00 and gave the company a “buy” rating in a research report on Wednesday, October 29th. Mizuho lowered their price target on PayPal from $84.00 to $75.00 and set an “outperform” rating for the company in a research report on Monday, December 22nd. Deutsche Bank Aktiengesellschaft dropped their price target on PayPal from $75.00 to $65.00 and set a “hold” rating on the stock in a research note on Friday, December 5th. Finally, Piper Sandler reduced their price objective on PayPal from $76.00 to $74.00 and set a “neutral” rating for the company in a research note on Wednesday, January 14th. Twelve investment analysts have rated the stock with a Buy rating, twenty-four have issued a Hold rating and five have issued a Sell rating to the company’s stock. According to MarketBeat.com, PayPal presently has an average rating of “Hold” and a consensus target price of $73.10.

Insider Transactions at PayPal

In other PayPal news, EVP Aaron Webster sold 9,282 shares of the company’s stock in a transaction that occurred on Monday, November 10th. The stock was sold at an average price of $66.29, for a total value of $615,303.78. Following the sale, the executive vice president owned 35,699 shares in the company, valued at approximately $2,366,486.71. This represents a 20.64% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Also, insider Suzan Kereere sold 4,162 shares of PayPal stock in a transaction that occurred on Wednesday, November 19th. The shares were sold at an average price of $59.84, for a total transaction of $249,054.08. Following the transaction, the insider directly owned 30,983 shares of the company’s stock, valued at approximately $1,854,022.72. This trade represents a 11.84% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 25,944 shares of company stock worth $1,725,233 in the last 90 days. Company insiders own 0.08% of the company’s stock.

PayPal News Roundup

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

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the company. Hilltop National Bank purchased a new position in shares of PayPal in the 2nd quarter valued at about $27,000. MUFG Securities EMEA plc grew its holdings in PayPal by 100.4% in the second quarter. MUFG Securities EMEA plc now owns 385 shares of the credit services provider’s stock valued at $29,000 after purchasing an additional 87,524 shares during the period. Cloud Capital Management LLC purchased a new stake in shares of PayPal in the third quarter valued at approximately $30,000. Kelleher Financial Advisors acquired a new position in shares of PayPal during the 3rd quarter worth approximately $30,000. Finally, True Wealth Design LLC lifted its position in shares of PayPal by 285.3% during the 3rd quarter. True Wealth Design LLC now owns 524 shares of the credit services provider’s stock valued at $35,000 after buying an additional 388 shares in the last quarter. Institutional investors and hedge funds own 68.32% of the company’s stock.

PayPal Stock Down 2.6%

The stock has a market cap 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. The business has a 50-day moving average price of $59.29 and a 200-day moving average price of $65.74. The company has a current ratio of 1.34, a quick ratio of 1.34 and a debt-to-equity ratio of 0.56.

PayPal (NASDAQ:PYPL) last posted its quarterly earnings data on Tuesday, October 28th. The credit services provider reported $1.34 earnings per share for the quarter, topping analysts’ consensus estimates of $1.20 by $0.14. PayPal had a net margin of 14.96% and a return on equity of 25.64%. The company had revenue of $8.42 billion during the quarter, compared to analysts’ expectations of $8.21 billion. During the same period in the prior year, the business posted $1.20 earnings per share. The firm’s revenue for the quarter was up 7.3% on a year-over-year basis. As a group, analysts forecast that PayPal Holdings, Inc. will post 5.03 earnings per share for the current year.

PayPal Company Profile

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.