PayPal (NASDAQ:PYPL) Stock Price Down 3.8% – Here’s What Happened

Shares of PayPal Holdings, Inc. (NASDAQ:PYPL) traded down 3.8% during mid-day trading on Thursday . The company traded as low as $44.50 and last traded at $45.53. 47,705,962 shares were traded during mid-day trading, an increase of 73% from the average session volume of 27,632,223 shares. The stock had previously closed at $47.32.

Trending Headlines about PayPal

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: Early takeover interest from Stripe briefly re-rated PayPal — the February report triggered a trading halt and a multi-percent rally as markets priced in a potential strategic bid that could unlock large upside. Stripe Report (TechCrunch)
• Positive Sentiment: Options and heavy call-buying show traders are still positioned for upside or event-driven volatility (consistent with takeover/arbitrage speculation), supporting intraday bids when news is constructive. MarketBeat: Halt & Options Flow
• Neutral Sentiment: Leadership transition (new CEO starts March 1) keeps strategic direction uncertain — this can either deter bidders or prompt near-term board action; investors are watching for how the new CEO addresses value/defensive positioning. MarketBeat: Leadership Context
• Negative Sentiment: Multiple reports over the last day say Stripe is not in takeover talks and PayPal confirmed it isn’t engaged in acquisition discussions — that pulled back the takeover premium and pressured the stock. Blockonomi: No Acquisition Talks
• Negative Sentiment: Several law firms and investor-rights groups have filed or announced class actions and investigations related to disclosures, prompting litigation risk and potential settlement exposure; multiple deadlines for lead-plaintiff motions are driving headlines. Pomerantz Class Action Alert
• Negative Sentiment: Analyst skepticism and recent fundamentals: a prior Q4 EPS/revenue miss and caution on 2026 guidance weigh on sentiment; Morgan Stanley’s maintained bearish view and other sell-side skepticism add pressure. Zacks: Guidance & Sentiment
• Negative Sentiment: Rising short interest and heightened volume amplify downside risk when positive headlines fade — short positions and fast news-flow can accelerate declines on negative follow-ups. MarketBeat: Short Interest & Volume

Analysts Set New Price Targets

A number of brokerages have commented on PYPL. Wells Fargo & Company reduced their price target on PayPal from $67.00 to $48.00 and set an “equal weight” rating for the company in a research report on Wednesday, February 4th. Daiwa Securities Group decreased their price target on shares of PayPal from $61.00 to $42.00 and set a “neutral” rating on the stock in a research note on Tuesday, February 10th. Weiss Ratings reiterated a “hold (c)” rating on shares of PayPal in a research report on Thursday, January 22nd. Citizens Jmp reissued a “market perform” rating on shares of PayPal in a research note on Wednesday, February 4th. Finally, Stephens lowered their target price on shares of PayPal from $65.00 to $45.00 and set an “equal weight” rating for the company in a report on Wednesday, February 4th. Nine analysts have rated the stock with a Buy rating, thirty have given a Hold rating and six have assigned a Sell rating to the company. Based on data from MarketBeat, the stock has a consensus rating of “Hold” and an average target price of $61.03.

PayPal Stock Performance

The company has a debt-to-equity ratio of 0.49, a current ratio of 1.29 and a quick ratio of 1.29. The company has a market cap of $41.92 billion, a PE ratio of 8.42, a price-to-earnings-growth ratio of 1.22 and a beta of 1.43. The business has a fifty day simple moving average of $52.13 and a two-hundred day simple moving average of $61.68.

PayPal (NASDAQ:PYPL) last posted its 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). PayPal had a net margin of 15.77% and a return on equity of 25.42%. The company had revenue of $8.68 billion during the quarter, compared to analysts’ expectations of $8.82 billion. During the same quarter last year, the firm earned $1.19 EPS. PayPal’s revenue for the quarter was up 4.0% on a year-over-year basis. Research analysts anticipate that PayPal Holdings, Inc. will post 5.03 earnings per share for the current year.

PayPal Dividend Announcement

The company also recently announced 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 dividend on an annualized basis and a yield of 1.2%. PayPal’s dividend payout ratio (DPR) is 10.35%.

Insider Activity at PayPal

In related news, insider Suzan Kereere sold 37,613 shares of the business’s stock in a transaction on Wednesday, February 18th. The shares were sold at an average price of $41.49, for a total value of $1,560,563.37. Following the completion of the transaction, the insider directly owned 30,983 shares in the company, valued at $1,285,484.67. The trade was a 54.83% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, EVP Frank Keller sold 3,478 shares of the company’s stock in a transaction dated Friday, February 6th. The stock was sold at an average price of $40.20, for a total value of $139,815.60. Following the completion of the transaction, the executive vice president directly owned 51,567 shares of the company’s stock, valued at $2,072,993.40. The trade was a 6.32% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 42,304 shares of company stock worth $1,749,493 over the last quarter. Insiders own 0.08% of the company’s stock.

Institutional Investors Weigh In On PayPal

A number of large investors have recently modified their holdings of PYPL. Bard Associates Inc. acquired a new stake in PayPal in the 4th quarter valued at about $25,000. Caitong International Asset Management Co. Ltd grew its holdings 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 purchasing an additional 457 shares during the period. Safe Harbor Fiduciary LLC acquired a new stake in shares of PayPal during the fourth quarter valued at about $28,000. MUFG Securities EMEA plc increased its holdings in PayPal by 100.4% in the 2nd quarter. MUFG Securities EMEA plc now owns 385 shares of the credit services provider’s stock valued at $29,000 after purchasing an additional 87,524 shares during the last quarter. Finally, Cloud Capital Management LLC purchased a new stake in shares of PayPal in the 3rd quarter valued at $30,000. Hedge funds and other institutional investors own 68.32% of the company’s stock.

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.