PayPal (NASDAQ:PYPL) Upgraded by Truist Financial to Hold Rating

Truist Financial upgraded shares of PayPal (NASDAQ:PYPL) from a sell rating to a hold rating in a research note released on Friday morning, MarketBeat Ratings reports. Truist Financial currently has $57.00 price objective on the credit services provider’s stock, up from their prior price objective of $44.00.

Several other research analysts have also issued reports on PYPL. Deutsche Bank Aktiengesellschaft cut their price target on PayPal from $50.00 to $45.00 in a report on Monday, May 11th. Piper Sandler lowered their target price on PayPal from $46.00 to $42.00 and set a “neutral” rating on the stock in a research report on Monday, June 29th. Weiss Ratings reiterated a “hold (c-)” rating on shares of PayPal in a report on Friday, May 8th. Daiwa Securities Group raised shares of PayPal from a “hold” rating to an “outperform” rating in a research report on Wednesday, May 6th. Finally, Needham & Company LLC restated a “hold” rating on shares of PayPal in a research note on Tuesday, May 5th. Nine investment analysts have rated the stock with a Buy rating, thirty-four have issued a Hold rating and four have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, PayPal presently has a consensus rating of “Hold” and a consensus target price of $54.96.

PayPal Price Performance

Shares of NASDAQ PYPL opened at $56.15 on Friday. The firm has a market capitalization of $49.53 billion, a P/E ratio of 10.53, a P/E/G ratio of 1.40 and a beta of 1.33. The firm’s 50-day moving average price is $45.70 and its 200-day moving average price is $47.14. The company has a current ratio of 1.26, a quick ratio of 1.26 and a debt-to-equity ratio of 0.47. PayPal has a 1-year low of $38.46 and a 1-year high of $79.50.

PayPal (NASDAQ:PYPL) last issued its earnings results on Tuesday, May 5th. The credit services provider reported $1.34 EPS for the quarter, beating the consensus estimate of $1.27 by $0.07. PayPal had a return on equity of 25.02% and a net margin of 15.00%.The company had revenue of $8.35 billion during the quarter, compared to the consensus estimate of $8.05 billion. During the same period last year, the business posted $1.33 EPS. The firm’s revenue for the quarter was up 7.2% compared to the same quarter last year. Equities research analysts anticipate that PayPal will post 5.32 earnings per share for the current fiscal year.

PayPal Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Thursday, June 25th. Stockholders of record on Thursday, June 4th were issued a $0.14 dividend. This represents a $0.56 dividend on an annualized basis and a dividend yield of 1.0%. The ex-dividend date was Thursday, June 4th. PayPal’s dividend payout ratio (DPR) is currently 10.51%.

Insider Activity

In related news, insider Suzan Kereere sold 3,379 shares of the stock in a transaction on Wednesday, June 3rd. The stock was sold at an average price of $42.79, for a total value of $144,587.41. Following the completion of the sale, the insider directly owned 30,983 shares of the company’s stock, valued at approximately $1,325,762.57. This represents a 9.83% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Frank Keller sold 10,732 shares of the firm’s stock in a transaction on Wednesday, April 29th. The shares were sold at an average price of $49.96, for a total value of $536,170.72. Following the transaction, the insider owned 41,567 shares in the company, valued at approximately $2,076,687.32. This trade represents a 20.52% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 20,612 shares of company stock worth $966,623 over the last 90 days. 0.63% of the stock is currently owned by corporate insiders.

Institutional Trading of PayPal

Institutional investors and hedge funds have recently made changes to their positions in the company. Bard Associates Inc. bought a new stake in PayPal in the 4th quarter worth about $25,000. Kelleher Financial Advisors bought a new position in shares of PayPal during the 3rd quarter worth approximately $30,000. Caitong International Asset Management Co. Ltd lifted its position in shares of 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 buying an additional 457 shares in the last quarter. Safe Harbor Fiduciary LLC purchased a new position in shares of PayPal in the 4th quarter worth approximately $28,000. Finally, Advocate Investing Services LLC purchased a new position in shares of PayPal in the 4th quarter worth approximately $30,000. Hedge funds and other institutional investors own 68.32% of the company’s stock.

Trending Headlines about PayPal

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: Truist Securities upgraded PayPal from Sell to Hold and raised its price target to $57 from $44, signaling improved confidence in the stock and helping sentiment around PYPL. Article: Benzinga report on Truist upgrade
• Positive Sentiment: Reports that Stripe and Advent International have approached PayPal with a $53 billion takeover bid have fueled speculation that PYPL could be worth more in a deal, boosting investor interest. Article: Yahoo Finance takeover report
• Neutral Sentiment: Options traders are pricing in about an 8.8% swing around next week’s earnings, indicating elevated expectations and potential volatility rather than a clear directional view. Article: TipRanks earnings volatility report
• Neutral Sentiment: Analysts say investors are focused on TPV growth, platform expansion, margins, and competition heading into earnings, with macro uncertainty still clouding the outlook. Article: Zacks preview
• Neutral Sentiment: PayPal remains a low-valuation name by market standards, with investors noting its roughly 11x earnings multiple and ongoing share repurchases as support for long-term value. Article: 24/7 Wall St. valuation note

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.