PayPal (NASDAQ:PYPL) Raised to Equal Weight at Barclays

PayPal (NASDAQ:PYPL) was upgraded by equities research analysts at Barclays from an “underweight” rating to an “equal weight” rating in a research report issued on Thursday, Marketbeat Ratings reports. The brokerage presently has a $55.00 price objective on the credit services provider’s stock, up from their previous price objective of $42.00. Barclays‘s price target indicates a potential downside of 2.76% from the stock’s current price.

Several other brokerages have also recently weighed in on PYPL. Daiwa Securities Group raised PayPal from a “hold” rating to an “outperform” rating in a report on Wednesday, May 6th. Citigroup raised their target price on shares of PayPal from $42.00 to $48.00 and gave the company a “neutral” rating in a research note on Wednesday, April 8th. Deutsche Bank Aktiengesellschaft lowered their price target on shares of PayPal from $50.00 to $45.00 in a research report on Monday, May 11th. Loop Capital started coverage on shares of PayPal in a research note on Tuesday, March 31st. They set a “hold” rating and a $46.00 price target for the company. Finally, Cantor Fitzgerald restated a “neutral” rating on shares of PayPal in a report on Thursday. Seven analysts have rated the stock with a Buy rating, thirty-four have issued a Hold rating and five have issued a Sell rating to the stock. According to MarketBeat, the stock presently has an average rating of “Hold” and a consensus price target of $54.61.

PayPal Stock Down 0.3%

Shares of PYPL opened at $56.56 on Thursday. The business’s fifty day moving average price is $44.60 and its two-hundred day moving average price is $47.23. The firm has a market capitalization of $49.89 billion, a price-to-earnings ratio of 10.61, a PEG ratio of 1.42 and a beta of 1.33. PayPal has a 52 week low of $38.46 and a 52 week high of $79.50. The company has a debt-to-equity ratio of 0.47, a quick ratio of 1.26 and a current ratio of 1.26.

PayPal (NASDAQ:PYPL) last released its earnings results on Tuesday, May 5th. The credit services provider reported $1.34 earnings per share for the quarter, topping analysts’ consensus estimates of $1.27 by $0.07. The company had revenue of $8.35 billion during the quarter, compared to the consensus estimate of $8.05 billion. PayPal had a return on equity of 25.02% and a net margin of 15.00%.The firm’s quarterly revenue was up 7.2% on a year-over-year basis. During the same quarter in the previous year, the company posted $1.33 earnings per share. On average, analysts predict that PayPal will post 5.32 earnings per share for the current year.

Insider Activity

In related news, CAO Chris Natali sold 1,337 shares of the business’s stock in a transaction that occurred on Wednesday, April 29th. The shares were sold at an average price of $49.46, for a total transaction of $66,128.02. Following the completion of the transaction, the chief accounting officer owned 1,586 shares in the company, valued at approximately $78,443.56. The trade was a 45.74% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Suzan Kereere sold 3,379 shares of PayPal stock in a transaction on Wednesday, June 3rd. The stock was sold at an average price of $42.79, for a total transaction of $144,587.41. Following the transaction, the insider directly owned 30,983 shares in the company, valued at approximately $1,325,762.57. This represents a 9.83% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 20,612 shares of company stock valued at $966,623 in the last ninety days. 0.63% of the stock is owned by insiders.

Institutional Trading of PayPal

Several hedge funds have recently added to or reduced their stakes in the business. Bard Associates Inc. bought a new stake in shares of PayPal in the fourth quarter worth about $25,000. Allied Private Wealth LLC acquired a new position in shares of PayPal in the 2nd quarter valued at approximately $25,000. Robinswood Financial LLC acquired a new position in shares of PayPal in the 1st quarter valued at approximately $26,000. Caitong International Asset Management Co. Ltd increased its stake in PayPal by 15,233.3% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 460 shares of the credit services provider’s stock worth $27,000 after purchasing an additional 457 shares in the last quarter. Finally, Safe Harbor Fiduciary LLC acquired a new stake in PayPal during the 4th quarter worth approximately $28,000. Institutional investors and hedge funds own 68.32% of the company’s stock.

Trending Headlines about PayPal

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: The reported takeover interest from Stripe and Advent has fueled speculation that PayPal could be worth more than the current offer, with several analysts and investors arguing the bid is too low. Reuters: PayPal board sees Stripe-Advent offer as inadequate, sources say
• Positive Sentiment: Some market commentary suggests the bid could force a higher valuation for PYPL, potentially supporting further upside if negotiations continue or a competing offer emerges. Yahoo Finance: Cantor sees potential for higher PayPal offer as analysis suggests $70/share value
• Neutral Sentiment: PayPal’s board has reportedly not formally responded yet, so the deal is still early-stage and subject to negotiation, financing, and regulatory risk. Yahoo Finance weekly review
• Negative Sentiment: The board is said to view the $53 billion proposal as inadequate, which could mean a longer path to any deal or no deal at all if a higher price does not materialize. PYMNTS: PayPal Board Calls $53 Billion Stripe-Advent Bid Inadequate

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.