PayPal (NASDAQ:PYPL) Rating Lowered to Hold at Hsbc Global Res

PayPal (NASDAQ:PYPL) was downgraded by investment analysts at Hsbc Global Res from a “strong-buy” rating to a “hold” rating in a note issued to investors on Wednesday,Zacks.com reports.

A number of other analysts also recently issued reports on the stock. William Blair restated a “market perform” rating on shares of PayPal in a report on Tuesday. BTIG Research reissued a “neutral” rating on shares of PayPal in a research note on Tuesday. Macquarie set a $58.00 target price on PayPal in a research report on Wednesday. Susquehanna lowered their price target on PayPal from $90.00 to $63.00 and set a “positive” rating for the company in a report on Wednesday. Finally, The Goldman Sachs Group reduced their price objective on shares of PayPal from $64.00 to $41.00 and set a “sell” rating on the stock in a report on Wednesday. Ten analysts have rated the stock with a Buy rating, thirty-one have given a Hold rating and five have given a Sell rating to the company’s stock. According to MarketBeat.com, PayPal has an average rating of “Hold” and an average price target of $62.88.

PayPal Stock Down 2.8%

Shares of PYPL opened at $39.90 on Wednesday. PayPal has a 52-week low of $38.88 and a 52-week high of $79.74. The company has a quick ratio of 1.34, a current ratio of 1.29 and a debt-to-equity ratio of 0.49. The stock has a fifty day simple moving average of $57.62 and a two-hundred day simple moving average of $64.67. The company has a market capitalization of $36.73 billion, a PE ratio of 7.38, a price-to-earnings-growth ratio of 0.64 and a beta of 1.43.

PayPal (NASDAQ:PYPL) last announced its quarterly earnings data on Tuesday, February 3rd. The credit services provider reported $1.23 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.29 by ($0.06). PayPal had a net margin of 15.77% and a return on equity of 25.42%. The firm had revenue of $8.68 billion during the quarter, compared to analysts’ expectations of $8.82 billion. During the same period in the prior year, the company posted $1.19 EPS. The company’s revenue for the quarter was up 4.0% compared to the same quarter last year. As a group, equities analysts forecast that PayPal will post 5.03 EPS for the current year.

Insider Activity

In other news, EVP Aaron Webster sold 9,282 shares of the firm’s stock in a transaction that occurred on Monday, November 10th. The shares were sold at an average price of $66.29, for a total value of $615,303.78. Following the completion of the transaction, the executive vice president owned 35,699 shares of the company’s stock, valued at approximately $2,366,486.71. This trade represents a 20.64% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, insider Suzan Kereere sold 4,162 shares of the company’s stock in a transaction that occurred on Wednesday, November 19th. The stock was sold at an average price of $59.84, for a total transaction of $249,054.08. Following the sale, the insider directly owned 30,983 shares in the company, valued at approximately $1,854,022.72. The trade was a 11.84% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders own 0.08% of the company’s stock.

Hedge Funds Weigh In On PayPal

Several institutional investors have recently modified their holdings of the business. MUFG Securities EMEA plc raised its stake in shares of 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 acquiring an additional 87,524 shares in the last quarter. Cloud Capital Management LLC purchased a new stake in PayPal during the 3rd quarter worth about $30,000. Kelleher Financial Advisors acquired a new stake in PayPal in the 3rd quarter valued at about $30,000. Torren Management LLC purchased a new position in shares of PayPal in the 4th quarter valued at about $31,000. Finally, True Wealth Design LLC grew its position in shares of PayPal by 285.3% during the third quarter. True Wealth Design LLC now owns 524 shares of the credit services provider’s stock worth $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.

Key PayPal News

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: Company announced discretionary buybacks and a new dividend, which provide near-term support for the stock and signal management willingness to return capital to shareholders. PayPal: Double-Digit Buybacks…
• Positive Sentiment: Some value-focused analysts and commentary argue the stock is deeply oversold and presents a buying opportunity at current depressed multiples. Should You Buy The Dip In PayPal Stock?
• Neutral Sentiment: PayPal remains a core fintech name within the Nasdaq/sector narrative, meaning it could benefit from any tech/fintech rotation back into the space. PayPal Remains Central…
• Neutral Sentiment: Recent analyst research reports vary — some maintain Hold/Neutral with reduced targets while others keep positive stances after trimming forecasts; this divergence is contributing to volatile intraday trading. Analyst Report: PayPal Holdings Inc
• Negative Sentiment: Q4 results missed EPS and revenue expectations and management issued a materially lower 2026 profit outlook — the core catalyst that started the rout. PayPal Replaces CEO…
• Negative Sentiment: Board ousted CEO Alex Chriss and appointed new leadership (reports name HP’s Enrique Lores), creating near-term execution uncertainty. PayPal replaces CEO Alex Chriss…
• Negative Sentiment: Multiple firms cut price targets and downgraded the stock following the miss/CEO change — increasing selling pressure and reducing analyst support. These PayPal Analysts Downgrade…
• Negative Sentiment: Shareholder class-action / securities-fraud investigations have been announced by multiple law firms tied to the gap between prior guidance and results, which can increase legal overhang and investor risk. Investigation Examines Gap…
• Negative Sentiment: Momentum/technical damage: PYPL has hit multiyear lows, with heavy volume and a cascade of retail/quant selling amplifying downside. Reaches New 12-Month Low After Earnings Miss

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.