PayPal (NASDAQ:PYPL) Stock Price Down 2.8% on Analyst Downgrade

PayPal Holdings, Inc. (NASDAQ:PYPL) dropped 2.8% during mid-day trading on Thursday after Hsbc Global Res downgraded the stock from a strong-buy rating to a hold rating. The company traded as low as $38.88 and last traded at $39.90. Approximately 42,411,972 shares were traded during trading, an increase of 75% from the average daily volume of 24,232,543 shares. The stock had previously closed at $41.03.

PYPL has been the topic of several other research reports. Morgan Stanley decreased their price objective on PayPal from $50.00 to $34.00 and set an “underweight” rating on the stock in a report on Wednesday. KeyCorp reissued a “hold” rating on shares of PayPal in a research note on Wednesday, October 22nd. Royal Bank Of Canada lowered their price target on PayPal from $91.00 to $59.00 and set an “outperform” rating for the company in a report on Wednesday. KGI Securities cut their price objective on shares of PayPal from $85.00 to $80.00 in a report on Monday, November 10th. Finally, BNP Paribas Exane decreased their target price 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. Ten research analysts have rated the stock with a Buy rating, thirty-one have assigned a Hold rating and five have assigned a Sell rating to the company. According to data from MarketBeat.com, PayPal presently has a consensus rating of “Hold” and a consensus price target of $62.88.

Insider Transactions at PayPal

In related news, EVP Aaron Webster sold 9,282 shares of the stock in a transaction that occurred on Monday, November 10th. The shares were sold at an average price of $66.29, for a total transaction of $615,303.78. Following the completion of the sale, the executive vice president owned 35,699 shares of the company’s stock, 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 Securities & Exchange Commission, which can be accessed through the SEC website. 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 in the company, valued at approximately $1,854,022.72. This trade represents a 11.84% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 0.08% of the stock is currently owned by insiders.

More 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

Institutional Inflows and Outflows

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

PayPal Stock Down 2.8%

The firm’s 50 day moving average price is $57.62 and its two-hundred day moving average price is $64.67. The firm has a market capitalization of $36.73 billion, a PE ratio of 7.38, a P/E/G ratio of 0.64 and a beta of 1.43. The company has a quick ratio of 1.34, a current ratio of 1.29 and a debt-to-equity ratio of 0.49.

PayPal (NASDAQ:PYPL) last released its quarterly earnings results on Tuesday, February 3rd. The credit services provider reported $1.23 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.29 by ($0.06). The firm had revenue of $8.68 billion for the quarter, compared to analysts’ expectations of $8.82 billion. PayPal had a return on equity of 25.42% and a net margin of 15.77%.The business’s quarterly revenue was up 4.0% on a year-over-year basis. During the same period last year, the firm earned $1.19 EPS. As a group, research analysts forecast that PayPal Holdings, Inc. will post 5.03 EPS for the current fiscal year.

PayPal Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, March 25th. Investors of record on Wednesday, March 4th will be paid a $0.14 dividend. The ex-dividend date is Wednesday, March 4th. This represents a $0.56 annualized dividend and a dividend yield of 1.4%. PayPal’s payout ratio is 10.35%.

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.