Rothschild & Co Redburn Issues Pessimistic Forecast for PayPal (NASDAQ:PYPL) Stock Price

PayPal (NASDAQ:PYPL) had its target price lowered by equities research analysts at Rothschild & Co Redburn from $50.00 to $32.00 in a report issued on Wednesday,MarketScreener reports. The brokerage currently has a “sell” rating on the credit services provider’s stock. Rothschild & Co Redburn’s price objective indicates a potential downside of 18.12% from the company’s current price.

Several other equities analysts have also issued reports on PYPL. Wells Fargo & Company reduced their target price on PayPal from $67.00 to $48.00 and set an “equal weight” rating for the company in a report on Wednesday, February 4th. Weiss Ratings restated a “hold (c)” rating on shares of PayPal in a research note on Thursday, January 22nd. Jefferies Financial Group reiterated a “hold” rating on shares of PayPal in a research note on Wednesday, January 7th. Stephens reduced their price target on shares of PayPal from $65.00 to $45.00 and set an “equal weight” rating for the company in a research report on Wednesday, February 4th. Finally, Argus decreased their price objective on shares of PayPal from $87.00 to $65.00 and set a “buy” rating for the company in a report on Friday, February 6th. Ten research analysts have rated the stock with a Buy rating, thirty have issued a Hold rating and four have assigned a Sell rating to the company. According to MarketBeat, the stock has an average rating of “Hold” and a consensus price target of $61.03.

PayPal Stock Performance

NASDAQ PYPL opened at $39.08 on Wednesday. The company has a fifty day moving average price of $55.45 and a 200-day moving average price of $63.42. The firm has a market cap of $35.98 billion, a price-to-earnings ratio of 7.22, a PEG ratio of 1.05 and a beta of 1.43. The company has a debt-to-equity ratio of 0.49, a current ratio of 1.29 and a quick ratio of 1.29. PayPal has a 1 year low of $38.46 and a 1 year high of $79.50.

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

Insider Activity at PayPal

In related news, 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 value of $249,054.08. Following the completion of the transaction, 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 position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, EVP Frank Keller sold 3,478 shares of the stock in a transaction on Friday, February 6th. The stock was sold at an average price of $40.20, for a total value of $139,815.60. Following the sale, the executive vice president owned 51,567 shares in the company, valued at approximately $2,072,993.40. This represents a 6.32% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 0.08% of the company’s stock.

Hedge Funds Weigh In On PayPal

Several hedge funds have recently made changes to their positions in the stock. Wedmont Private Capital grew its holdings in 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 in the last quarter. Dakota Community Bank & Trust NA grew its stake in PayPal by 8.7% during 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 increased its holdings in PayPal by 2.5% during the 3rd quarter. Maia Wealth LLC now owns 6,404 shares of the credit services provider’s stock worth $424,000 after acquiring an additional 155 shares during the period. Transatlantique Private Wealth LLC lifted its stake in PayPal by 2.9% in the 3rd quarter. Transatlantique Private Wealth LLC now owns 5,698 shares of the credit services provider’s stock worth $382,000 after purchasing an additional 159 shares in the last quarter. Finally, WCG Wealth Advisors LLC lifted its stake in PayPal by 1.1% in the 2nd 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. 68.32% of the stock is currently owned by hedge funds and other institutional investors.

PayPal News Roundup

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: Strategic AI partnership — PayPal announced a collaboration with Sabre and Mindtrip to build an end‑to‑end agentic AI offering for travel, which could expand payments volume and embed PayPal into travel bookings. Read More.
• Neutral Sentiment: Leadership change and strategy push — PayPal named Enrique Lores (ex‑HP) as CEO amid a broader push into embedded/automotive payments; the move brings experienced leadership but also signals executive turnover during a tough performance period. Read More.
• Negative Sentiment: Investor litigation risk — Multiple law firms (Pomerantz LLP and Kessler Topaz) have opened investigations into PayPal on behalf of shareholders, increasing legal overhang and potential costs or distraction. Read More. Read More.
• Negative Sentiment: Analyst downgrades and price‑target cuts — Rothschild & Co. Redburn cut its price target to $32 and kept a sell rating; Zacks has also moved PYPL to a Strong Sell and trimmed EPS estimates after the earnings miss, increasing sell‑side pressure. Read More. Read More.
• Negative Sentiment: Underlying business weakness — Q4 results showed an EPS and revenue shortfall relative to consensus, analysts cut 2026–27 estimates, and several firms (Truist, Cantor Fitzgerald) issued pessimistic outlooks; commentary highlights near‑term execution and growth concerns. Read More.

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.